So It Begins... Private Equity in CFB
- Thread starter BigLame
- Start date
Are you that Nigerian Prince that has been emailing me? I’m waiting for my money.
I have no knowledge of Chicago's situation but there is a school of thought that this is what should happen right up to where there is a very small amount of parking available at any one time. Maximizes the churn and gets a return on a public investment.
I'm not a finance guy, so I don't get it. Would a 500M PE investment not involve an expected 50MM to 100MM annual return? What possible advantage is there to this other than the obvious short term gain? Seems like the only possible paths to grow a college football team or athletic department are better TV deals, undiscovered revenue or extracting more money from more or existing donors and fans. Since the media deal is locked up for the foreseeable future, it can't be that. I find it hard to believe any stones have been left unturned as far as revenue streams go, so either they believe they can get more out of existing support or they're going to go around SLC and poke holes in all the rubbers so that in 25 years, they have more supporters?
Let's say they use that and buy rosters. Do they think that playoff berths or even national championships would increase their value?
Let's say they use that and buy rosters. Do they think that playoff berths or even national championships would increase their value?
Coach O is a national treasure.
College sports needs a Canseco figure.
Tells everybody where the bodies were because he was the one doin' the burying.
Brings the whole thing down with him.
My guess is they are planning to use this money in the short-term to field high-level teams in advance of the next big conference shake-ups to secure an invite to the Big 10
Yep..went through it twice and the first meetings always went " nothing is going to change". Then they proceeded to change everything especially cutting people who knew the business and industry. Pretty much cutting salary and never reinvesting in business. And both of my experiences were with two of the largest PE firms in the US. Both left our balance sheets with huge debt and walked away after cashing in when we went public. My opinion is they are a cancer.
It truly is a risky investment. You can buy athletes. You can buy coaches. But even with those your odds, imo, still don't match the ROI risk assessment. This always puzzled me. I'm not sure of the legal ramifications of writing off the losses, which for many companies is a wash. But as an investment, I can't see it.
What's the plan if the Big Ten doesn't want them and/or they don't make the Super League?
If it's even still called the Big Ten or SEC, it might be called something different to look less like Iowa, NW, Miss St, Vandy and Rutgers are getting kicked out. Of course just winning could help be on the correct side of that choice but unlike Indiana, Utah seems quite incapable of winning the conference they promised they'd dominate and has made a real case for being dead last 16 of 16 in mens basketball.
I'm in that fog right now. I know I'm expensive and I'm just waiting for an offer that makes it worth it to go away...
This is what happened at my last company. PE bought the company, grabbed the bank accounts, sold the buildings, rented them back, fired the executives (including me), tried to run the company on a shoestring (cutting manufacturing supplies beyond hurting), lost the biggest customer in the process, split up and sold the remaining businesses. A massive cluster and many of my friends were left scrambling to find new jobs. While some PE may actually be beneficial, most seem to be slash and burn.
I ended up getting a MEd and taught Math & Stat at a small college till retirement. Teaching was emotionally rewarding but not really financially rewarding. I did not care, I covered my bills and had a much calmer life.
The only way they get an invite (and I kinda doubt that even happens) is if the playoff expands even more or if they go full SMU and don’t get a cut of the media dollars.
