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Big12 Considering 1 Billion From Private Equity Investment Firm

Goose said:
I’ll treat you with respect because you’re cool and the way the world works you’ll probably end up owning the company I work for someday.

I will not treat the people that cause us to play in the Allstate 12 Conference with respect.

https://twitter.com/i/web/status/1801295636672774327

THERES NOT EVEN TWELVE ****ING TEAMS YOU DIPSHITS
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If a dashingly handsome man with irresistible charisma and roguish charm walks in with caiman cowboy boots to lay you off… say hi!

If you’re at a defense or aero company, only a matter of time til we meet
 
Buffnik said:
Good example would be the B1G selling 50% of BTN. The partner was Fox. Conference got short term cash, with a good bit invested in building out on-campus studios & other infrastructure. Fox was able to muscle into much higher rates of distribution and carriage fees. That was a great deal.

If it's a deal with comparable qualities which significantly grow the future pie, then the Big 12 should jump at it. If it's a deal which does nothing more than borrow against future revenue to fix short-term revenue gap & budget issues, the Big 12 members will eventually regret it.
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And I think that Fox has more expertise in this field than any private equity company.
 
hawg1 said:
I don’t understand the stake. Who does CVC sell this to in the future? Or is the stake in exchange for revenues?
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The way it worked in La Liga and Ligue 1 (and would've worked here if the fans didn't stop it) is that the league received cash amount X now in exchange for X% of TV income over X amount of years. And in Spain the 3 biggest clubs are now fighting this in court as they voted against it, I wonder why.
 
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Jens1893 said:
You were talking about the 7 years until 2031.
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Piecing together the points in the article, it seems like CVC believes there's a chance that the conference media valuation could jump from $2.3B to $5B in the new contract. I assume part of that thinking is that their $1B investment will help achieve that 100%+ increase over the next 7 years.

There are so many unknowns to this that I'm just trying to wrap my head around how $1B for 16 programs over the next 7 years is worthwhile. If it's truly $1B for a flat 20% stake in the league forever and not a contracted length, then it makes even less sense.
 
I have no idea whether or not this is a good deal in the long run for the Big XII/CU financially and with media exposure. But I do think it will be very tempting to go through with it in an attempt to close in financially to the B1G and SEC.

If this deal come to fruition, will the so called "non-revenue" sports survive and even thrive be having larger budgets than they do now? (I would include men's and women's basketball to this question.)
 
The Alabaster Yak said:
Piecing together the points in the article, it seems like CVC believes there's a chance that the conference media valuation could jump from $2.3B to $5B in the new contract. I assume part of that thinking is that their $1B investment will help achieve that 100%+ increase over the next 7 years.

There are so many unknowns to this that I'm just trying to wrap my head around how $1B for 16 programs over the next 7 years is worthwhile. If it's truly $1B for a flat 20% stake in the league forever and not a contracted length, then it makes even less sense.
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You wouldn't get those terms, especially when you consider that the rights are currently sold and hence a big increase is unlikely until the next round. La Liga sold their rights for 50 years, Ligue 1 indefinitely and the Bundesliga proposal was 20 years.
 
BuffsNYC said:
180px-Buc-ee%27s_beaver.svg.png

XII
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It's so obvious
 
Jens1893 said:
You wouldn't get those terms, especially when you consider that the rights are currently sold and hence a big increase is unlikely until the next round. La Liga sold their rights for 50 years, Ligue 1 indefinitely and the Bundesliga proposal was 20 years.
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I don't know how this would really help more than in the first year or two of the deal in that case. CVC isn't all of the sudden going to increase the Big 12's media valuation to the point where the next contract is on par with the B1G and SEC. If their projections are accurate for 2032 and beyond and the Big 12 doubles it's media rights to $5B that's still going to majorly lag the P2
 
www.thescore.com

Report: Big 12 could sell naming rights to Allstate

The Big 12 is exploring selling its naming rights to a title sponsor in a lucrative and unique deal that could generate hundreds of millions in revenue, reports ESPN's Pete Thamel.The conference has had discussions with insurance giant Allstate about a deal to change the league's name, sources...
www.thescore.com www.thescore.com

to piggyback on this news....
can you say "The Big Allstate Conference" or "The Allstate 12 Conference." ??
 
I tell you that I’m nervous if I’m KState, Iowa St and other “low value” brands. PE isn’t going to make money by cutting Olympic sports as that wont move the needle. But cutting schools out will.
 
The Alabaster Yak said:
I don't know how this would really help more than in the first year or two of the deal in that case. CVC isn't all of the sudden going to increase the Big 12's media valuation to the point where the next contract is on par with the B1G and SEC. If their projections are accurate for 2032 and beyond and the Big 12 doubles it's media rights to $5B that's still going to majorly lag the P2
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And even if you were to sell them now for say 1bn over 20-25 years for 20%, you'd be getting 20% less a year NOW, and in 2025 and in 2026 etc. for a one-off payment of approx 70m. Part of that money would have to be used to balance those budgets where you currently have 20% less from your main source of income.

I also don't think it's a given that the full 1bn (or amount X) would go to the schools for them to use as they please for that reason. I believe it'd be a split of, for example, 40% to the schools of which half can be used as they please with the other half going to infrastructure projects, with the conference holding 60% back which it uses to balance out the immediate shortfall (as the investor takes its cut) and for the usage on projects that benefit the league as a whole (think digitilsation, streaming project, general infrastructure etc.).
 
Goose said:
I tell you that I’m nervous if I’m KState, Iowa St and other “low value” brands. PE isn’t going to make money by cutting Olympic sports as that wont move the needle. But cutting schools out will.
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They need inventory to sell, tho. Particularly football games.

But the concern over how much or if any influence the investor would have over the way the league is run is valid. Think an annual game in say Riyad, 9 am or 11 pm kickoff times ... the investor wants a return for its money and has very little regard for the interest of fans.
 
InTheBuff said:
www.thescore.com

Report: Big 12 could sell naming rights to Allstate

The Big 12 is exploring selling its naming rights to a title sponsor in a lucrative and unique deal that could generate hundreds of millions in revenue, reports ESPN's Pete Thamel.The conference has had discussions with insurance giant Allstate about a deal to change the league's name, sources...
www.thescore.com www.thescore.com

to piggyback on this news....
can you say "The Big Allstate Conference" or "The Allstate 12 Conference." ??
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I hate this so ****ing much and I can't really explain why. Just seems really tacky to rename a college conference that has been around over a century after a ****ty insurance company.
 
Jens1893 said:
And even if you were to sell them now for say 1bn over 20-25 years for 20%, you'd be getting 20% less a year NOW, and in 2025 and in 2026 etc. for a one-off payment of approx 70m. Part of that money would have to be used to balance those budgets where you currently have 20% less from your main source of income.

I also don't think it's a given that the full 1bn (or amount X) would go to the schools for them to use as they please for that reason. I believe it'd be a split of, for example, 40% to the schools of which half can be used as they please with the other half going to infrastructure projects, with the conference holding 60% back which it uses to balance out the immediate shortfall (as the investor takes its cut) and for the usage on projects that benefit the league as a whole (think digitilsation, streaming project, general infrastructure etc.).
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right analysis. Cash value of money.
 
Jens1893 said:
They don't need to. I think there's a reason that only those playing catch up with the top dog are engaging this.
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They didn't "need" to add OU/ UT/ USC/ UO etc. either. They were already making great money. If there's a lot of cash to be made in favorable terms to them, they'd absolutely explore it.
 
BerkeleyBuff said:
They didn't "need" to add OU/ UT/ USC/ UO etc. either. They were already making great money. If there's a lot of cash to be made in favorable terms to them, they'd absolutely explore it.
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That is correct, but there's less need to take risks when you're the big kahuna anyway.
 
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