Colorado, Kansas, and Utah cannot sign anything or take any money that would prevent a move to the B1G
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Big12 Considering 1 Billion From Private Equity Investment Firm
- Thread starter InTheBuff
- Start date
This is not true. I have worked closely with private equity for 20+ years, and in the large majority of cases when a private business sells to PE, it's a great outcome for both the business owner, the employees and the PE firm's investors.
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After talking with a couple of connected folks in college athletics, a real possibility for many schools, including the CU AD, is to borrow money from its Endowment to help fund the required $20-30 mm in required payments to players.. CU has a $2+ billion Endowment. Of course, some of that Endowment is invested in fixed income. As long as the return on the on borrowed $$ yields a sufficient income stream to the Endowment, this could be a win-win. And, it could minimize or eliminate the need for private equity capital, at least in the short run.
Good investment, imo. We've seen how the excitement for the football program is affecting enrollment, diversity and the community.
hawg1
Well-Known Member
What do you think the money will be used for?
LOL
Ive worked for three companies that PE came into and worked with a 4th. Three were founder owner and one used to be Fortune 500. The employees got mostly ****ed in all 4 situations. One went completely out of business after PE discovered the founder knew what he was doing and they didnt. One is on the ropes still taking gut punches. The other two have had 100% turnover mostly by layoffs and have changed hands a couple of times. The founders however did great.
My experience was the PE folks slashed inventory, got rid of high paid high performers and staffing depth, replacements were paid under market so we churned a lot. PE demanded cash flow increases constantly. When the customer base started shrinking they fired most of the C Suite.
n = 4.LOL
Ive worked for three companies that PE came into and worked with a 4th. Three were founder owner and one used to be Fortune 500. The employees got mostly ****ed in all 4 situations. One went completely out of business after PE discovered the founder knew what he was doing and they didnt. One is on the ropes still taking gut punches. The other two have had 100% turnover mostly by layoffs and have changed hands a couple of times. The founders however did great.
My experience was the PE folks slashed inventory, got rid of high paid high performers and staffing depth, replacements were paid under market so we churned a lot. PE demanded cash flow increases constantly. When the customer base started shrinking they fired most of the C Suite.
BerkeleyBuff
Well-Known Member
MHver is a troll. He once even admitted that all his tweets are a "social experiment" to study the power of social media.
BerkeleyBuff
Well-Known Member
Will differ by school. Not trying to lure FSU and Clemson, that's for damn sure. That's like throwing ones at a dancer who knows if she works one club over she'd be making thousands every day. (FSU and Clemson are looking to make SEC/ B1G money long term, not for a couple years until some PE fund runs out).
Buff_nc
Well-Known Member
Oops, my bad! Thank you for replying again.
Indeed, that is my frame of reference mostly, though some PE too in unusual circumstances. When we've raised late rounds, those VCs were looking for a little faster turns. But it ebbs and flows, been here 30 years so lots of changes. Interesting you mention hold times are getting longer, Im helping an early phase company raise now and the demands are much tougher on real, proven revenue. If you have that seems like the time horizon should be shorter. (Not arguing at all, just interesting and I appreciate your perspective)
hawg1
Well-Known Member
Large parts of the biopharma industry have been built by PE.LOL
Ive worked for three companies that PE came into and worked with a 4th. Three were founder owner and one used to be Fortune 500. The employees got mostly ****ed in all 4 situations. One went completely out of business after PE discovered the founder knew what he was doing and they didnt. One is on the ropes still taking gut punches. The other two have had 100% turnover mostly by layoffs and have changed hands a couple of times. The founders however did great.
My experience was the PE folks slashed inventory, got rid of high paid high performers and staffing depth, replacements were paid under market so we churned a lot. PE demanded cash flow increases constantly. When the customer base started shrinking they fired most of the C Suite.
It's pretty amazing how many people interact with him
OK Motherfukkers, this is EXACTLY what I have been saying for the past 2 years. He is even saying that there is conversations about it with programs.
Create the Colorado Football Club, sell 49% to Prime, SWAC, and Robert Smith and we are off
Suck it
the similarties to european football arent even funny anymore sometimes
#FUNDESLIGA
Idk how the hell you can sell a majority share of a PUBLIC UNIVERSITY arm to an investor and keep that arm as part of a university. They would engage in deals and branding that the university would not agree with. It would be an abject failure.
And selling a big share to the coach is just as absurd. Coaches. Do. Not. Stick. Around. In 99 of situations.
And selling a big share to the coach is just as absurd. Coaches. Do. Not. Stick. Around. In 99 of situations.
It would not be a Sale
It would be a Licensing/Operator Contract
We sell/lease concessions and other stuff
You can make a contract for everything
Dorms are now built by private companies on public land with 50 year or 100 year leases
Concessions and dorms are not the premier marketing arm of the university. Giving majority ownership is a sale and would never work unless the AD entirely splits off from the university.
Youtube guy, Greg Flugar,
Who's been right about USC going to Big10 and Colorado being the first of 4 corner schools to jump to Big12, has some scoop that
private equity $$$ spilling into college football is imminent. Not December or January but to keep an eye out in February.
There's one particular school that's ready to make the dive. If they do, could this start a domino effect ?
Many schools are afraid that if they don't follow they will be left behind.
Sounds like things are about to get crazy.
Who's been right about USC going to Big10 and Colorado being the first of 4 corner schools to jump to Big12, has some scoop that
private equity $$$ spilling into college football is imminent. Not December or January but to keep an eye out in February.
There's one particular school that's ready to make the dive. If they do, could this start a domino effect ?
Many schools are afraid that if they don't follow they will be left behind.
Sounds like things are about to get crazy.
College Football is so static these days. We could use some crazy to shake things up.
NFL owners have started selling minority stakes to private equity now that the league is allowing it.
Seems to make sense for college football programs to do something similar. Stadium, parking, concession, merchandise, licensing and ticket operations could absolutely be a business entity. In fact, it would all run much more efficiently and at a higher revenue level. Then there are things like "NFL Films" that is its own company and could be monetized as a business by CU. I don't know if you can sell the team like if it were a franchise, but I think there are a number of areas where you could sell an interest in the revenue and structure it so that the private equity partner had operational management responsibilities and authorities.
Medford M.
Well-Known Member
Colleges need to start dipping into their endowment in SOME way that benefits students.
Nobody is going to SELL the program
The total Colorado Football program with facilities, brand, revenue, etc could be worth say $1 Billion
Bring in Mr Robert Smith of Denver and his Vista Equity Partners to inject $490 Million and say he was partnered with SMAC and Prime for overall operations, BUT the University has majority ownership and still controls the brand/ethics/standards and the group has a master plan they all agree on. The efficiency, creativity, strength, etc would be very strong. This is PE, but would be more of a community and value play and not some hard core business move alone.
EDIT: Take half that $490 and redo stadium, pay House Settlement and keep NIL Top notch.
Pay Prime as top 5 Coach/CEO
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North Carolina would be one of my first guesses, considering recent moves.
My biggest observation is that all these Schools/Programs are the value, not the Conferences and not the CFP. Bulk up the teams and run your own league and championship. No need for extra baggage
My guess is Notre Dame
Luther is a good friend of Coach Prime. Probably a coincidence, but you never know.
So, just the Vatican is the PE firm?
I wonder if the NFL owners worry about this?