So It Begins... Private Equity in CFB

[AgronAlum]

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

They take on leveraged buyouts meaning the company they're buying puts up the money for a significant portion of the purchase price and the PE firm funds the rest. The C suite doesn't care about the debt because they're taking the bags of cash from the PE firm and getting out of dodge.

They sell the assets, rent them back to the company, extract as much money as possible in management fees, offshore or move the money and fold on the remaining debt. They get huge paychecks and the entity they purchased folds.

It's really ******* stupid and PE is a death sentence for anything they touch. The product will get worse until the day of its demise where is no longer exists. They have other schemes but this is the money maker.

 

[NWICY]

Fans better buckle up. Here's a quote from the article.

"Utah Brands & Entertainment will house most of the components traditionally held within the university’s athletic department, including many athletic personnel and divisions. However, fundraising will remain with the school.

The new company’s primary goal is to generate more revenue across an assortment of areas, including ticketing, concessions, corporate sales and sponsorships. Charged with overseeing and operating the revenue-share pay system for Utah athletes, the new entity provides the department with more flexibility and freedom considering it will operate separate from a public university."

Utah fans just got bent over

 

[GTO]

How soon before Saudi blood money buys conferences?

 

[KCyclone2010]

There is only one way this ends for Utah, and it's not good.

 

[1UNI2ISU]

How soon before Saudi blood money buys conferences?

It already is, it's just disguised under other corporate partnerships.

 

[KnappShack]

This entire college sports machine is as good as dead.

It'll keep churning money and all that, but the soul is gone. The mission of higher education is gone

The world changes.....

 

[cytor]

Utah making deals with the devil.

 

[AgronAlum]

How soon before Saudi blood money buys conferences?

A quick google tells me sooner than later.

Otro is part of a network of spinoffs from RedBird Capital, which already has multiple co-ventures with Abu Dhabi's IMI. Not the Saudi's but UAE. Generally if the Saudis, UAE or Qatar start funneling money into something, the others follow to get a piece of the action. This is a test case and if it's even close to profitable for Otro, expect some wild amounts of money to be put in front of some of these universities.

They also buy a ton of bad debt from folks in the US to garner favor if they can. There will be deals to be made.

 

[CascadeClone]

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

That's on the city of Chicago for making a stupid deal. And lets face it, its probably a corrupt deal, knowing Chicago.

 

[GTO]

A quick google tells me sooner than later.

Otro is part of a network of spinoffs from RedBird Capital, which already has multiple co-ventures with Abu Dhabi's IMI. Not the Saudi's but UAE. Generally if the Saudis, UAE or Qatar start funneling money into something, the others follow to get a piece of the action. This is a test case and if it's even close to profitable for Otro, expect some wild amounts of money to be put in front of some of these universities.

The Saudis, UAE, and Qatar know the oil will eventually run dry and they are spending boatloads of money into alternative energy, sports, entertainment, etc. People will wake up one day and realize they own everything and it will be too late.

 

[HFCS]

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.

Disagree, it was insane. A lot of places I’d park for free after 7pm became $8/hr parking 24/7. I already used cta/bike but went to using it exclusively and renting out my parking. This stuff can have horrific consequences.

 

[BCClone]

Utah making deals with the devil.

Puts more meaning into the holy war now.

 

[RonBurgundy]

At least I thought the B1G would have/acquire the expertise to deal with a shark PE firm. Utah is going to get eaten alive.

 

[CyCoug]

This entire college sports machine is as good as dead.

It'll keep churning money and all that, but the soul is gone. The mission of higher education is gone

The world changes.....

Let’s assume it goes wonderfully from a profit perspective. I’m sure we’ll all see major benefits to the faculty and students in the form of additional funding and tuition subsidies, right?

 

[SelfMade]

Don't worry, guys, when I win the lottery, I will start a mining company in Africa (my country of Origin), then tie our School sponsorship to gold produced from my mine, and dollars will be flowing in for ISU. We will be getting any player we want as long as they fit into our Coaches' plans and program. It's going to happen. Be optimistic. I just need to hit that combination. With your prayers, nothing is impossible.

 

[ScottyP]

Speaking of Utah, Kyle Wittingham is planning to return next season, correct? I think there was a deadline of a decision but wasn't sure when it comes up.

 

[SelfMade]

How soon before Saudi blood money buys conferences?

Very soon.

 

[1UNI2ISU]

Let’s assume it goes wonderfully from a profit perspective. I’m sure we’ll all see major benefits to the faculty and students in the form of additional funding and tuition subsidies, right?

At the expense of 50 inch TVs in every locker and a second 24 hour barbershop?!?!

Get your priorities straight.

 

[Prone2Clone]

Utah fans just got bent over

I has a sad.

 

[HouClone]

Interesting that Utah is doing it alone and not with the Big 12. I know the Big 12 said they weren't going to pursue PE. Likely it was due to some schools not signing a longer grant-of-rights, a la Utah, Kansas, and maybe Arizona State.

Funny how Utah would just rip into Yormark and the Big 12 when the Big 12 started pursuing PE. Now, they see it as super and their inclusion into the Big 10.