'26 UT WR Salesi Moa (Michigan)

#1,327
#1,327
AstonRoyal said:
A lot of times private equity has a different definition of ROI than. Most people think the ROI of buying a business is how much revenue it can generate. A lot of times private equity is more concerned with building the valuation of the business, possibly to be sold later.

So for example, I'm a fan of Chelsea FC (a soccer team in England's Premier League), and they were just bought a about 3 or 4 years ago by a private equity for something like $3.5 billion. I think since they've taken over they've spent almost a billion dollars of additional money in just buying top young players alone (in world soccer, player transactions revolve around clubs/franchises buying players and their contracts). The goal of the investments is that more wins and trophies will bolster the valuation of the club longterm.

So how private equity in college football might work could be the same where they put a valuation on the football program, and the goal is to build the brand by winning, building the brand, etc. At least that's what I'm assuming.
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You build up the valuation to borrow on the shares. Zero income tax. However, in order for this to be a viable strategy, you would have to sell the shares at some future point. This creates a cycle of ownership that isn’t good.
 
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#1,332
#1,332
CAVPUT said:
I'd assume retiring triggers the portal just like a coach being fired? If so, maybe the kid has a change of heart? Since "legend in his own mind" seems destined for OSU, folks would naturally wonder if Moa would be back in play. Thought crossed my feeble mind.
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I hope your feeble mind is correct 🤣 :cool:
 
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#1,335
#1,335
Franklin_Vol09 said:
You build up the valuation to borrow on the shares. Zero income tax. However, in order for this to be a viable strategy, you would have to sell the shares at some future point. This creates a cycle of ownership that isn’t good.
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not necessarily, you still get regular income to cover general expenses and stuff and profit from that. I was just saying that's not the primary driver like most people think.
 
#1,337
#1,337
AstonRoyal said:
A lot of times private equity has a different definition of ROI than. Most people think the ROI of buying a business is how much revenue it can generate. A lot of times private equity is more concerned with building the valuation of the business, possibly to be sold later.

So for example, I'm a fan of Chelsea FC (a soccer team in England's Premier League), and they were just bought a about 3 or 4 years ago by a private equity for something like $3.5 billion. I think since they've taken over they've spent almost a billion dollars of additional money in just buying top young players alone (in world soccer, player transactions revolve around clubs/franchises buying players and their contracts). The goal of the investments is that more wins and trophies will bolster the valuation of the club longterm.

So how private equity in college football might work could be the same where they put a valuation on the football program, and the goal is to build the brand by winning, building the brand, etc. At least that's what I'm assuming.
Click to expand...
Private equity rarely invests more money in the business they acquire. They look for cost savings and efficiencies. Typical savings come from restructured debt and cutting payroll while increasing pressure on key metrics. They reduce coworkers by 20% typically and then pay other coworkers' higher salaries. These salaries come with high performance expectations. Overall payroll reduces tremendously. Think of it like this. You sell your business that has 10 people. The new owner removes 4 coworkers (saving massive money with labor, benefits, etc). They give the remaining 6 anywhere from a 10-20% increase (or overtime). Fill gaps with part-timers.

Private equity is a business formulated on the rich kids of successful parents. They all need important jobs when they graduate from their fancy graduate schools. They crush businesses and couldn't care less if their LLC files for bankruptcy. They'll just open a new one. People and customers are pawns in order to create profit. They have tons of money and think what they are doing is real work. If you want to get to know the men and women of private equity, watch American Psycho with Cristian Bale. It's a dark comedy on their lifestyle and not too far off the mark.
 
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#1,339
#1,339
Go Fight Win said:
spot on ^

one of the major drivers of the enshittification of everything you once loved is due to PE
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It's crazy GFW. I have experience with these types. I have watched them bleed and close 60 retail locations. 250 jobs gone in 12 months. Use the money from that venture to fund another from the cash flow. It was easy to do. Flatter the corporate franchise director. Sway him with the portfolio owned and some fancy presentation showing other brand success. Take out a major bank loan. Buy the stores. Then start good for a few months. Then, layoffs begin at the home office, followed by layoffs in the field. Finally, they stop purchasing inventory. The coworkers know something is desperatley wrong but they are lied to. Finally, they stop paying bank loan. The Franchisor is left with the bag and at that point there are no buyers because the business is dead. Remaining staff get fired when the bank takes over and liquidates.



These people are scum of the earth. This woman tells it best. Puts it in easy-to-understand language. Better than I can.
 
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#1,340
#1,340
AstonRoyal said:
A lot of times private equity has a different definition of ROI than. Most people think the ROI of buying a business is how much revenue it can generate. A lot of times private equity is more concerned with building the valuation of the business, possibly to be sold later.

So for example, I'm a fan of Chelsea FC (a soccer team in England's Premier League), and they were just bought a about 3 or 4 years ago by a private equity for something like $3.5 billion. I think since they've taken over they've spent almost a billion dollars of additional money in just buying top young players alone (in world soccer, player transactions revolve around clubs/franchises buying players and their contracts). The goal of the investments is that more wins and trophies will bolster the valuation of the club longterm.

So how private equity in college football might work could be the same where they put a valuation on the football program, and the goal is to build the brand by winning, building the brand, etc. At least that's what I'm assuming.
Click to expand...
Bingo. There is a lot of different versions of PE. But the business models tend to be the same when it comes to focusing on dividend returns for shareholders. Most PE firms look to quarterly profits instead of long term holdings. My experience is all in property management. PE only holds the property for 3-5 years, has different occupancy/profits goals, and all PE purchases tend to circle towards the real estate. When PE buys a chain restaurant/retail, the building and real estate under it are the more important assets.
PE bought the PM company I work for now. They didnt buy us for our portfolio (even though we had over 80 properties). They vought us for our business processes/practices. We just took over their main PM firm and became the largest in the country. We specialize in a la carte PM and are able to squeeze every possible penny out of each unit. We are taking over the entire portfolio of 500k+ units over the next few years. If you rent and dont currently pay for the utilities/expenses of the community, gird your loins.
 
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#1,341
#1,341
Franklin_Vol09 said:
You build up the valuation to borrow on the shares. Zero income tax. However, in order for this to be a viable strategy, you would have to sell the shares at some future point. This creates a cycle of ownership that isn’t good.
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I work for a PE REIT(after they paid 25% above cap for the property management company where I work). As long as the dividends are continuously reinvested, little to no taxes are ever paid. There are a ton of additional rules/laws of which to adhere (I am sure you know).
But the goal is to build up the perceived value of assets. It is easy for high net-worth individuals to take out extremely low interest rate loans on that "value" to pay for living costs. Foundation or shell corps are set up to purchase homes, vehicles, etc. Zero taxes paid on unrealized capital gains.
 
#1,342
#1,342
Franklin_Vol09 said:
You build up the valuation to borrow on the shares. Zero income tax. However, in order for this to be a viable strategy, you would have to sell the shares at some future point. This creates a cycle of ownership that isn’t good.
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Realizing I just repeated what you already said...I will see myself to the door
 
#1,347
#1,347
Whittingham is a smart dude for this move. I mean Michigan sucks but good for him getting out of that mess. I hope other schools are taking notes because Utah could of very well given themselves their own death penalty
 
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#1,349
#1,349
Jaxon_Vol2017 said:
Can you explain what private equity investing is? And why it's bad for college football? I literally have no idea
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Private equity is owning stock in a business that’s not publicly traded. Apple and nvidia trade on the Nasdaq but the local vet clinic or Mom & Pop sandwich shop is privately owned and doesn’t trade in the public market.

There are private equity firms that buy businesses and you can have the opportunity to own a portion of those businesses but these investment opportunities are usually restricted to the very wealthy (you might need $1M+ cash to join in). The wealthy buy and sell to each other and inflate the value as they do so. Eventually they want to dump these assets on the public for a high price leaving the common investor as the loser.

It could be good for college football if you had a great owner running the firm who is focused on building a great program. However, private firms just want profits and will squeeze everything out that they can. Imagine that they could just start liquidating all the helmets and pads for a quick buck. They wouldn’t do that but in theory would have the authority. I’d rather not see UT be owned by a private firm that just looks at profits alone.
 
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#1,350
#1,350
Jaxon_Vol2017 said:
Can you explain what private equity investing is? And why it's bad for college football? I literally have no idea
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Always strikes me as a slicker version of a ponzi scheme. The money is *actually* there for at least part of the time, but the end goal is to dump it out and the taxpayers have to pay for it all over while they walk away with their new money to do it all over again.
 
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