So It Begins... Private Equity in CFB

[HFCS]

Everything Private Equity touches dies. The fans are getting forgotten and hosed in all of this. Hopefully we can adapt to the changes, but it’s going to affect the fan experience, and not for the positive

I lived in Chicago through the years they sold off all the parking meters to private equity and in the end they ended up getting something like 2-3% of the value of what they sold over a 75 year deal they have been fighting to get out of unsuccessfully for about 15 years now, they destroyed 97% of the value in a thing the public previously owned. The massive destruction of quality of life overnight was JAW DROPPING, meters instantly went to 2-10x the rate of Manhattan NYC and ran 24/7 365 days a year, it was no small reason why I sold my car and leased out my parking the last two years I lived there, couldn't stand putting $5-20 in a parking meter to go somewhere for a couple hours, switched to bike/train/bus/cab/car share. Moved to LA...parking meters still take nickels LOL! /end rant

 

[Cyhig]

Otro Capital as an equity partner? So Utah will now be called the Utah Otro's

And this will be their new primary logo

 

[BCClone]

So what you’re saying is that Utah is going to be selling beer in Rice-Eccles before Pollard allows it in Jack Trice?

We are saying you can probably get a lap dance there before you get a beer here. Anything to make a buck there now.

 

[Althetuna]

I chuckled at this line.

The new venture is expected to generate as much or more than $500 million in capital

The amount of capital generated could be less than $500 million, $500 million, or more than $500 million. So it could generate $1? or it could generate $100 billion dollars?

 

[HFCS]

Hope Ute fans enjoy $20 hot dogs

So if UU makes the CFP or wins a bowl game, is the PE firm now entitled to a portion of that payout? What a cluster.

Utah fan mindset:

"The Mountain West is far better than Big 12 because Big 12 is BYU" is probably analogous to "We will burn down our house to mach BYU's unlimited billionaire money".

 

[Cyched]

Utah fan mindset:

"The Mountain West is far better than Big 12 because Big 12 is BYU" is probably analogous to "We will burn down our house to mach BYU's unlimited billionaire money".

It may not be a coincidence that this comes on the heels of the Crumbl donor saving Sitake for BYU. They hate BYU so much they’ll rationalize anything.

 

[iowastatefan1929]

Doesnt PE bankrupt everything and offshore the assets? Joann Fabrics comes to mind, Vegas on the chopping block.

 

[HFCS]

It may not be a coincidence that this comes on the heels of the Crumbl donor saving Sitake for BYU. They hate BYU so much they’ll rationalize anything.

It really reminds me of when the Big 12 was their lifeboat and 99% of their fans said going to the MWC was superior to the Big 12 out of pure irrational hate for BYU.

People who know me in the cave know I'm probably the least religious person possible, and I've been pretty shocked at how Utah consistently seems to have the worst people/fans and BYU seems to have the best. It's nothing like what I'd have guessed. If anything I'm regularly angry about stuff like what happened at Colorado where the fans chanted stupid stuff at BYU and relieved ISU fans have not been called out for doing that.

 

[1UNI2ISU]

The best thing about PE is they immediately know everything about how to run your business even though they've never done it at any point in their executive's lives. It's one hell of a skill to have.

 

[12191987]

Doesnt PE bankrupt everything and offshore the assets? Joann Fabrics comes to mind, Vegas on the chopping block.

There are different endgames, and that is one.

Another is to right the ship and spin it back out, whether as a public company or selling to another private firm.

If things go well and it proves lucrative maybe Crumbl or BYU will buy it?

 

[BCClone]

It may not be a coincidence that this comes on the heels of the Crumbl donor saving Sitake for BYU. They hate BYU so much they’ll rationalize anything.

Utah fans are just a bunch of angry men because BYU took all the available women

 

[Die4Cy]

The best thing about PE is they immediately know everything about how to run your business even though they've never done it at any point in their executive's lives. It's one hell of a skill to have.

You agreeing to do what they want is entirely the point.

 

[Althetuna]

Doesnt PE bankrupt everything and offshore the assets? Joann Fabrics comes to mind, Vegas on the chopping block.

The PE that bought the conpmany I worked for streamedlined costs and resold for a profit.

Honestly, I feared it would be a bloodbath when they first entered the picture but it wasn't nearly as bad as I had anticipated.

Typically, I didn't think PE's held assets long term but I'm not a finance expert.

 

[BCClone]

There are different endgames, and that is one.

Another is to right the ship and spin it back out, whether as a public company or selling to another private firm.

If things go well and it proves lucrative maybe Crumbl or BYU will buy it?

I was going to post this. That would be funny.

 

[BCClone]

The PE that bought the conpmany I worked for streamedlined costs and resold for a profit.

Honestly, I feared it would be a bloodbath when they first entered the picture but it wasn't nearly as bad as I had anticipated.

Typically, I didn't think PE's held assets long term but I'm not a finance expert.

PE loves cash producers and hates money tied in hard assets.

 

[12191987]

I was going to post this. That would be funny.

BYU could turn the Utes into a farm team and have a huge advantage!

 

[Die4Cy]

PE loves cash producers and hates money tied in hard assets.

That's why a large investment in an athletics program is so odd. Success in generating regular returns would be difficult I would think. They must view it as an untapped market for early adopters.

 

[BCClone]

BYU could turn the Utes into a farm team and have a huge advantage!

Guaranteed to always have one loss every year

 

[canker2323]

I lived in Chicago through the years they sold off all the parking meters to private equity and in the end they ended up getting something like 2-3% of the value of what they sold over a 75 year deal they have been fighting to get out of unsuccessfully for about 15 years now, they destroyed 97% of the value in a thing the public previously owned. The massive destruction of quality of life overnight was JAW DROPPING, meters instantly went to 2-10x the rate of Manhattan NYC and ran 24/7 365 days a year, it was no small reason why I sold my car and leased out my parking the last two years I lived there, couldn't stand putting $5-20 in a parking meter to go somewhere for a couple hours, switched to bike/train/bus/cab/car share. Moved to LA...parking meters still take nickels LOL! /end rant

You’re being a little dramatic. It’s just parking meters. I lived Chicago at the same time. It wasn’t that big of a deal. Took the El, cab or uber.

 

[BCClone]

That's why a large investment in an athletics program is so odd. Success in generating regular returns would be difficult I would think. They must view it as an untapped market for early adopters.

Pay cash and know the media money will be there. Banking on the new media deal is huge. If not there is a steady stream of cash.