Many of you may have seen this already. Could this impact our independence?+
Replies to: Many of you may have seen this already. Could this impact our independence?+
That’s a bad thing for those schools. They are selling their receivables and revenue
And by extension their souls, to private equity.
The longer ND stays independent, the better.
I'm not so sure
The way this is structured, they are creating a separate, for profit entity with a board of seven members, four of which are from the university and one is an outside donor. The PE firm gets two seats. So the new entity is controlled by the university. Utah is set to receive the majority of the profits from the new entity. The only way the PE firm comes out ahead is if they grow the new entity's revenue. They could lose their entire investment.
This isn't a loan, it is an investment. The university is betting that the PE firm can grow the athletic department revenue better than it can, in exchange for said investment plus a share of future profits.
The vast majority of athletic departments lose money - and they are set to lose more going forward due to the House vs NCAA settlement. So they can either raise student fees, cut sports, try to raise more money or do nothing.
Seems like a creative approach that I'm sure many other programs will be watching closely.
There’s a reason UM & SC opposed this and the big 10 bottom feeders didnt
If you are trying to build a brand, it might be a good idea. Sophisticated schools with strong brands don’t need to share the revenue.
Agree
I was only referring to the recent University of Utah PE announcement. For a school in that tier, it seems like a creative approach.
For entire conferences to tap the PE market introduces a lot more nuance. I don't blame Mich and USC for balking.
They would help their bottom line if they eliminated revenue losing sports.
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This shouldn’t be allowed…but a great deal of what colleges are doing both academically
…and athletically should not be allowed.
Many (Most?) have gone so far afield they are no longer serving the national interest…
Agreed.
PE is a pay day loan, and then some
Yeah. PE is for finance emergencies or for cash out of current holders at the expense of the future.
I wonder if any of the conferences are considering an IPO...assuming that is something that can be structured...I've given it zero thought.
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