Can Private Equity & Naming Rights Equalize College Football?
Вставка
- Опубліковано 12 чер 2024
- In this video, we dive deep into the latest buzz surrounding the Big 12 Conference as it explores a potential partnership with CVC Capital Partners. We also discuss the breaking news about Allstate & Globe Life potentially securing the conference naming rights to the Big 12 and CUSA respectively. Join us as we analyze what this could mean for the future of the Big 12, its member schools, the Group of 5 Conferences, and the broader landscape of college athletics.
📺 *Stay Tuned:*
Don't forget to like, comment, and subscribe for more updates and reactions to the biggest news in sports! Let us know your thoughts on the Big 12's moves in the comments below.
👍 *Connect with Us:*
- Twitter: @imtreysmith
- Instagram: @collegeunderdogs
- TikTok: @collegeunderdogs
#CollegeFootball #GroupOf5 #PrivateEquity #Reaction #CollegeSports
Dodd Article Link: www.cbssports.com/college-foo...
---
Disclaimer: The views and opinions expressed in this video are solely those of the speaker(s) and do not necessarily reflect the official policy or position of any other agency, organization, employer, or company.
----------------
* Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, commenting, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favor of fair use.
Our understanding all items used in video are in correlation to Fair Right Use, however given that it is open to interpretation, if any owners of the content clips would like us to remove certain parts of the video, we have no problem with that and will do so as fast as possible. Please message us on UA-cam if you have any concerns. - Спорт
Good to have you back, missed the show
Good to be back!! Thanks for watching
Glad to have you back! As a South Florida Bulls fan, it's nice to have some perspective given to the midtier.
Much appreciated!!
Glad to see your show back man!
Good to be back! 💯🤝
First time listener. I enjoyed your show and I will be back.
Appreciate you, Bob…thanks for listening/watching 🤝
I feel like this is gonna look like NASCAR eventually where players have to plug sponsors in their post game interviews
It’s definitely trending that way
In the NIL era I kind of would expect and accept that.
You are asking the right questions. Conference value comes from what? Selling media value via viewership, or winning bowl games, or selling tickets to games. Private equity can only make immediate payouts versus future revenue for the life of a contract. IF it goes beyond the life of media contract versus the Conference itself, then individual schools will be committing school to partial revenue ownership of ALL of that school’s revenue streams. This would protect private equity schools bolting a Conference. In effect, it will be an INDEFINITE GOR, probably with a stated buyout clause.
The Conferences selling naming rights is a great way to go. I am sure ESPN, ESPN+, and Fox will want their part of that too if it goes to verbal mention. Patches and field logos are just part of viewership.
Good stuff here!
What the AAC and other G5s need to do is look into media rights with spanish networks. As a UTSA alum and Fan San Antonio has a big Spanish population the more south you go the more available spanish channels. Just a thought and that would probably help with exposure to a greater market.
This is an interesting idea I hadn’t heard yet…how much $ do those networks have to dish out (that’s ultimately what it would come down to)
I don't see Private Equity, that much being different than we already have.. Most universities have already partnered with sponsors/donors for all kinds of things. For example, USF Health (Tampa General) is plowing in the money to build out a sports medicine and rehab facility into the new stadium. In a sense this is private equity making an investment that partners the two organizations. Where PE could different is that they are just looking for a return, rather than an outright partnership. Where it gets dangerous is if PE money is used for operations and their return is tied to the revenue that operations generates. You can see where that could be tricky. The devil is in the details.
The only thing I like about Allstate potentially sponsoring it is instead of having the best catch of the week, it'd be the good hands player of the week.
😎
What you noted is exactly what is happening. CVC partnered with my current parent company to buy us 6 years ago. Our business grew and last year, out company bought CVC out.
Same here. This cash infusion is so that the Big12 can invest properly FOR a 15-20% stake in the league. That is forever until the Big12 buys them out.
If the Big12 flops in the CFP and/or investments don't pan out... then this will be an epic fail. If the Big12 can win a CFP in the next five years or consistently get to the final, it will be a win especially if the Big12 can pick up some ACC schools.
But 5 or 10 years from now, the Big12 might need to pay CVC 1.5B or 2B to buy them out.. otherwise CVC pockets 20% of future profits.
The B10 and SEC dont red to do this... they have a warchest and don't need to catch up to anyone.
Big12 is banking on themselves and don't want to fall behind too much... hence they are risking their future... but if they win then it worked. If they suck and then the B10 and SEC leave them behind, then what does it matter... at least they tried.
Great insight here! Thank you for sharing
It sounds like some people don't know how public funding works. No public institutions are not going to have their public funding cut anymore, that is ridiculous. The logic that "It will be cut because they don't need funding anymore" is shortsighted because the schools generate millions of dollars to the economy and to student enrollment. Cutting off public funding pretty much cuts off money to the local economy.
Naming rights sounds acceptable, Private Equity sounds like bad news.
That’s a fair take 💯
@@CollegeUnderdogs If the private equity thing goes wrong the the conference may end up far worse than they are now. It is a big gamble, I would vote no.
I agree. Its a hail mary that could work but probably wont. I would wait 2 years and see how we do in the playoffs and what happens after that. Then a hail mary maybe worth a shot.
The main thing you would hope to do with the extra money is help fund paying players and to help reinvest that money so you have a stronger athletic endowment. I can’t think of any other legitimate use case.
Trying putting the money into an Athletic Endowment and pay players only interest like all other Endowment payments to student scholarships.
Also maybe facilities. Some programs could catch up. They arent as important in recruiting as they used to be, but an investment in facilities is something that can benefit a program for years, where as an investment in a player usually ends when he leaves, and can be a risk if he is a flop.
I’m absolutely not in favor of selling equity in your conference for short term financial gains. My understanding is the amount they would pay to buy the share, divided per program over the rest of the current GoR, would cover the gap between the big 12 and the big 2. But spending like that would be dumb because CVC isn’t going to just give them more money for the next deal.
Yes, exactly…I want to know the details on this agreement
You're assuming that the money isn't being used to create new revenue streams.
How does it help the Big XII? We just don't know. There are too many questions and no answers. Oh, and that investment is not "revenue", it is capital. It is an asset. There is a tremendous difference between an asset and income, which is another word for "revenue".
Agreed!! Way too many questions left unanswered at this point
Sounds like all these public institutions don't need public funding anymore.
Great point haha…first person I’ve seen make this point! 💯
Yeah let's see how much crying they do if the public money gets cut off.
@EricCuellarDesignandFilm Actually I'm curious to see how many people are crying when the public money IS NOT cut off. These schools boost up the economy, they're not going to cut it off simply because you think that you came up with a clever idea. I'm sure that someone like you said the same thing when the media deals exploded.
asking questions means you need to do your research then report back to your audience
Asking questions generates quality discussion amongst the members of this channel’s college football community
I am somewhat in favor of naming rights sponsorships for conferences. I don’t like that the big 12 wants to eliminate its identity, but their identity is weaker than the ACC or SEC or Big ten because they’re a 25 year old sandwich now between a couple big 8 schools, a couple SWC schools, a couple PAC schools, and then the rest. For other power conferences(the G5 likely is fine ditching their current names entirely just like the big 12, none have an old established identity except the MAC), I’d rather you keep the name and add a sponsor like how foreign sports leagues work. Think Barclays Premier League(as it was formerly known) or Hungry Jack’s NBL
Private equity tends to destroy whatever it touches.
Valid point