Allstate in negotiations to buy naming rights to the Big XII

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apparently the Big 12 is looking to close the revenue gap between the B12 and the top two power conferences, the B1G and SEC.

found this online:

The conference has had discussions with insurance giant Allstate about a deal to change the league's name, sources told Brett McMurphy of Action Network. New name possibilities for the Big 12 reportedly include "The Big Allstate Conference" and "The Allstate 12 Conference."

As part of the deal, the Big 12 could earn between $30 million and $50 million per season, which would be divided among the conference's 16 members, according to McMurphy. The Big 12 is reportedly also considering selling its naming rights to a financial company that would pay the league slightly more than Allstate.

The Big 12 is reportedly also exploring selling 15-20% of itself to CVC Capital Partners - a global private equity giant based in Luxembourg - for $800 million-$1 billion, sources told CBS Sports' Dennis Dodd. Part of that money would go directly to the conference members. The firm reportedly made a presentation to Big 12 commissioner Brett Yormark during a meeting with league leaders in May.

Big 12 teams currently earn $31.7 million each as part of their media rights deal with Fox and ESPN that ends in 2031. With the potential cash infusion from private equity, the Big 12 would move "much closer" to the Big Ten media rights deal, a source told Dodd. The Big Ten tops all conferences with its school members set to earn approximately $75 million annually.
 






short ornery norwegian said:
The Big 12 is reportedly also exploring selling 15-20% of itself to CVC Capital Partners - a global private equity giant based in Luxembourg - for $800 million-$1 billion, sources told CBS Sports' Dennis Dodd. Part of that money would go directly to the conference members. The firm reportedly made a presentation to Big 12 commissioner Brett Yormark during a meeting with league leaders in May.
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This might be as dumb as the ACC’s Grant of Rights. At least that had an end date, so this might be dumber. They would be giving away 15-20% of their money forever just to get one year of Big Ten/SEC type money.

Unless there is some sort of legitimate investment they have planned for that money, I don’t see how this has any ROI for the Big 12. And I would be highly skeptical of any investment claims.
 

matt said:
This might be as dumb as the ACC’s Grant of Rights. At least that had an end date, so this might be dumber. They would be giving away 15-20% of their money forever just to get one year of Big Ten/SEC type money.

Unless there is some sort of legitimate investment they have planned for that money, I don’t see how this has any ROI for the Big 12. And I would be highly skeptical of any investment claims.
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I think this could lead to a better idea though: take the league public as a non-profit like the Packers. Then you can get money from die hards and regular fans that you can invest or return to the schools, the new “investors” don’t expect an ROI, and the league is setup as a non-profit with the expectation that all would-be earnings are returned to the schools. I imagine that would be far easier for the university presidents to sign off on too. But then Yormack might not get his kickback from CVC.
 

LesBolstad said:
I wouldn't be overjoyed if I was an Allstate customer. They just raised homeowner rates 22% across the country on average
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What better way to spend the money saved by rejecting claims, mispricing claims, jacking premiums. Allstate maybe more than any other has done a good job at papering over their image with clever advertising (Mayhem etc) and wall to wall sponsorship deals. I suppose if there are NO other legitimate options then maybe otherwise I don’t know why anyone would continue to patronize a company that is regularly tagged the worst insurance in the US.
 




matt said:
This might be as dumb as the ACC’s Grant of Rights. At least that had an end date, so this might be dumber. They would be giving away 15-20% of their money forever just to get one year of Big Ten/SEC type money.

Unless there is some sort of legitimate investment they have planned for that money, I don’t see how this has any ROI for the Big 12. And I would be highly skeptical of any investment claims.
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Yeah, they’re going to want all that money BACK guys…with huge interest/return. Where is the projected ROI for the schools? There isn’t any; or not nearly enough to make sense. A CBS article mentioned part of the deal is CVC lending their “expertise” to the conference and member. Their expertise is extremely limited…run don’t walk away.

Hopefully this gets laughed out of existence but I don’t know anymore man. Expecting the common sense rule to get applied to anything and particularly NCAA sports is getting less and less reliable.

I like your individual public equity proposal.
 


How about we start having players sponsored where they have to change their names to include the sponsor?

"Jah Jimmy Johns Joyner with his 3rd sack of the game!"
"Max Best Buy Brosmer with a 99 yard scramble for a TD!"
"That's career win 100 for PJ Head and Shoulders Fleck!"
 
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Think they might go with The BAllstate 12? Or 12 AllState Bigs.
 

Full Speed Ahead said:
McDonald's should buy the naming rights to the MAC and call it the "Big-MAC" conference.
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Denver_Gopher said:
I cannot imagine the B1G nor the SEC doing this, but......
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Big 12 really stupid to enter the arms race.
Its like the Soviet Union having an arms race with the US

Yeah you can stock up. But if you do things to make the opponent stock up, they can stock up faster and your whole system might collapse.
 

For the right price the Big 10 and SEC would absolutely do this. The almighty dollar rules all, baby!
 

Sparlimb said:
Think they might go with The BAllstate 12? Or 12 AllState Bigs.
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It would be insane for them to change the name to The Allstate 12 Conference and keep up the "12" charade
 

The Gopher QB job in the Nvidia Football Conference will sure pay well. It's a great paycheck for leading a team of free agents on Peacock against conference foes like UCLA.
 




I like the Allstate name better than Legends & Leaders, especially if some righteous bucks are part of the deal.
 


GophersInIowa said:
How about we start having players sponsored where they have to change their names to include the sponsor?

"Jah Jimmy Johns Joyner with his 3rd sack of the game!"
"Max Best Buy Brosmer with a 99 yard scramble for a TD!"
"That's career win 100 for PJ Head and Shoulders Fleck!"
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I would go with PJ Mr Clean Fleck. Just saying!
 


Some guy said:
Big 12 really stupid to enter the arms race.
Its like the Soviet Union having an arms race with the US

Yeah you can stock up. But if you do things to make the opponent stock up, they can stock up faster and your whole system might collapse.
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Yep, but they’ll get their money.

Reminds me a little bit of that kid trying to get out of some bad deal he signed pledging some percentage of future NFL earnings for 500K. This is even dumber than that.
 

LesBolstad said:
I wouldn't be overjoyed if I was an Allstate customer. They just raised homeowner rates 22% across the country on average
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It's an industry wide issue but yes, the optics are bad.
 

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