Big Ten Enterprises

[TruthSeeker]

Do you guys like the idea of the new Big Ten business entity?

 

[BleedGopher]

No clue what you're referencing. Any context? Links?

Go Gophers!!

 

[Com_Cool]

Sources: Big Ten mulling $2B private capital deal

The Big Ten is in talks about a private capital deal, which includes a 10-year grant of rights extension through '46, that would infuse at least $2 billion into the league and its schools, sources told ESPN.

www.espn.com

 

[LeftofThaDial]

I don’t like it, but if they do go forward with it the U better take away the new athletics fee for students.

 

[BleedGopher]

PE Firms don't care about winning the Axe or Pig, they care about making money. If this allows us a massive renovation of The Barn to drive new revenue streams, OK, let's talk, but if PE firms are just driving up coaches salaries and QB pay, then no thanks.

But once this line is crossed, we enter yet another brand new territory of "college" athletics.

Go Gophers!!

 

[A_Slab_of_Bacon]

I don't see PE providing anything the B1G couldn't do for itself.

 

[Some guy]

I personally feel the big ten would be better off buying the tv rights of the non P4 conferences
And then pooling them with big ten rights and selling them all together

 

[Pompous Elitist]

I don't see PE providing anything the B1G couldn't do for itself.

This^

Somebody (or somebodies) at the big ten office is/are being paid, and the school presidents are for certain being fed a load of BS. They add nothing, will divert future conference revenue to their partners (undoubtedly including big ten co-investors pushing this likely including the current head) rather than revenue being shared across the schools and athletes.

This smells.



.

 

[WindyCityGopher]

If PE is involved you know greed and corruption are only a thin layer underneath. I hate this for college sports if it goes through. It’ll
just be a watered down version of professional leagues.

 

[Ope3]

If PE is involved you know greed and corruption are only a thin layer underneath. I hate this for college sports if it goes through. It’ll
just be a watered down version of professional leagues.

Too late.

 

[bonin21]

Is it oil money like everything else these days?

 

[NateDawgUM]

I don’t like it, but if they do go forward with it the U better take away the new athletics fee for students.

Oh honey if you think PE means that prices go down and fees go away...

 

[WindyCityGopher]

Too late.

Once PE gets its claws into college sports we’ll long for the good old days of what we have now.

 

[BilldGopher]

I don't see PE providing anything the B1G couldn't do for itself.

How many business schools does the B1G+ have at its disposal?

 

[HitMeAgainIAmStillMoving]

I don't drink enough to like this idea.

 

[A_Slab_of_Bacon]

I don't drink enough to like this idea.

Would seem better if you got a cut...

 

[Ope3]

Sounds like Michigan and Ohio St want it.

Probably will happen.

 

[Mr. 131]

Some context would help.

 

[LeftofThaDial]

Some context would help.

The Big Ten is considering selling a 1/20th share of future earnings to a Private Capital firm for 2 billion dollars. The schools would receive an immediate infusion of around 100 million each.

 

[TwistingMyMelon]

How many business schools does the B1G+ have at its disposal?

Is that a rhetorical question? I would say all of them, so 18.

 

[LeftofThaDial]

Sounds like Michigan and Ohio St want it.

Probably will happen.

Did I misread the article? It read to me like Michigan and Ohio St are the only ones still mulling it over, while the rest of the league is for it.

 

[howeda7]

This is like taking out a 2nd mortgage to pay off credit cards. Not great.

 

[Ope3]

Did I misread the article? It read to me like Michigan and Ohio St are the only ones still mulling it over, while the rest of the league is for it.

No, I misinterpreted. My bad.

The other 16 want it with the hopes it keeps Much/OSU satisfied long term.

Can billions in private capital keep the Big Ten locked in and Ohio State, Michigan happy?

The Big Ten’s stability is more important for some within the league than for others.

www.nytimes.com

 

[Pompous Elitist]

The Big Ten is considering selling a 1/20th share of future earnings to a Private Capital firm for 2 billion dollars. The schools would receive an immediate infusion of around 100 million each.

To avoid making any hard decisions now. The schools have a huge spending problem, not a revenue problem. Better to make tough decisions to enable revenue sharing for athletes: freeze salaries, pay cuts in some cases (*cough* for example Mr. Coyle) than kick the can… The bar is closed, Mr. Coyle you’re cut off.

Their example of bringing in guys that can arrange mass sponsorships, ok but they can’t do that right now? Why do they need these guys?

 

[swede2]

Sounds like Michigan and Ohio St want it.

Probably will happen.

I thought they were balking

 

[swede2]

This is like taking out a 2nd mortgage to pay off credit cards. Not great.

No it isn't.

 

[Pompous Elitist]

The actual pitch to the destitute big ten leadership has been leaked. Word is it’s been warmly received.

 

[Mr. 131]

The Big Ten is considering selling a 1/20th share of future earnings to a Private Capital firm for 2 billion dollars. The schools would receive an immediate infusion of around 100 million each.

Thanks Lefty!
2B is a helluva injection.

 

[Gopher Mac]

I don't drink enough to like this idea.

This sounds like what Christian Ponder would call an easily correctable problem on your part.

 

[Unregistered User]

I hate this.

This will not be a stand alone entity, the "enterprise" will become a part of a PE firm's portfolio, and they do not expect a reasonable ROI, they demand outsized returns on their investments, typically within 3 - 7 years. It is typical for a PE firm to target a 20% IRR.

These are not kind souls who are doing something to help out another entity and give them a leg up, pat them on the head and encourage them to continue working long into the future.

The one thing I don't understand is to whom will they sell their share to in the future? PE firms like to swoop in, change things up with management or processes, increase revenue, and then flip that asset to some other buyer. They must already have an exit plan, I just can't imagine another willing party to buy their shares.