All GOOD POINTS in each of your posts on this.
And I say this as someone who, while not a lawyer, not only spent years working in financial markets but also has a Masters in NON-PROFIT FINANCIAL MANAGEMENT.
In line with my earlier post, my take on this is that the sheer force of the MONEY SUCTION introducing LLC’s into college football will create will soon challenge EXCLUSIVE UNIVERSITY OWNERSHIP.
The income streams in CFB are simply TOO LARGE not to attract PRIVATE EQUITY CAPITAL.
And not surprisingly, Forbes, thinks likewise.
I hadn’t read the article I’ve linked below prior to spotting the private equity connection myself and, so, didn’t realize how far along the business community has already proceeded in its thinking on this novel opportunity.
And since recent days haven’t been the greatest for private equity, you can be sure its interest in CFB will only grow stronger.
Here’s the article:
https://www.forbes.com/sites/joemog...tys-next-big-shopping-spree-college-football/
Some excerpts from it:
1.
“These are professional student athletes, and the teams are major sports franchises. But, at the same time, it’s an industry that is being heavily disrupted. In other words,
college football is a ripe hunting ground for hedge funds and private equity.
“We’ve arrived at this point because of a potent mix of explosive growth and poor leadership. The NCAA has fumbled repeatedly during the NIL transition, and
most athletic directors are ill-equipped to run businesses generating tens of millions in revenue annually.
2.
While many in college athletics may scoff at this idea, it’s entirely plausible under current conditions.
Investors are already out pitching to schools and conferences. The Big Ten Conference is already taking bids with an assist from Evercore.
3.
In all likelihood, the first university to sign a major deal will likely be a smaller Power Four football program.
While the biggest programs will have no problem paying players and putting together big NIL packages, smaller schools will likely struggle to be competitive. This is the opening that a firm needs. They’ll approach one of these smaller programs with an offer of $150 million (or more) for 51% of the say in how they run their football program.
4.
For an AD with little business experience trying to put together a winning program, this will look like a good deal. Cash up front to build a team and a promise from the guys in suits to juice revenue in the future
. The problem, of course, is that as soon as this deal is done, revenue growth will become the only priority. The investors won’t balk at putting in their own athletics director and putting profits ahead of players, education, fans, and the institution. That’s a horrible, horrible long-term decision for the university, but it’s entirely plausible.
I’m by no means proposing that this is the INEVITABLE FUTURE OF CFB, but it could become part of it and the way that the MORE PROFESSIONAL-MINDED PROGRAMS emancipate themselves from the MORE TRADITIONAL ONES.
And of course it could be the answer to CHASEBALL’S CRUSADE. If he can put together a PRIVATE EQUITY TEAM that is able to convince ND to sell a controlling interest in its program, he could then recruit whoever he wants for as long as he wants and never look back.
Just kidding, of course, on the last point.
BUT, HEY, I COULDN’T RESIST.
frontofficesports.com
