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So It Begins... Private Equity in CFB

HFCS said:
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.
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It has been awhile since Rick Majerus had the Utes rolling.

Wasn’t Will Clyburn a Utah transfer?
 
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12191987 said:
It has been awhile since Rick Majerus had the Utes rolling.

Wasn’t Will Clyburn a Utah transfer?
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Yeah Clyburn led MWC in scoring in Utah's last year in the MWC I'm pretty sure.

Maybe our most "can't miss" safe transfer of that transfer era.
 
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drmwevr08 said:
Only if the City does that. Can be done in house. They obv made the decision to farm it out for a defined return and less overhead. Thats a whole separate argument.
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The city sold the rights for an upfront fee, no ongoing revenue. Really dumb move.
 
cycloneworld said:
Private equity generally looks for 2 ways to get their returns - annual cash flow or making a multiple of the sale price upon their exit in 3-10 years (depends on the PE firm and fun). The language about turning this to a for-profit entity makes me think they want cash flow which would be awful for an athletic department.
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Yeah, I just don't get the point from the University. In my wildest dreams I can't come up with how a 500MM infusion of cash can grow their entire brand, let alone a new entity, enough to throw off the 50MM minimum cash flow while maintaining the AD's current spending.

This whole thing reeks of a federal bailout in a decade or less.
 
DBQR4CY said:
How is this not a Reverse Mortgage? What happens when a return isn't increasing each year or a failure to pay happens? Spots slashed? Tax payers on the hook?
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Like I was saying in my post...the brand is only valuable because of the money tax payers and students have already given them in the first place, now Utah tax payers (whether the like UU or go there or not) will be taxed to market a brand owned by private equity. Gross. BYU grads will be taxed to promote and market this private equity acquisition, people who never to to college anywhere or who went in a different state will be.
 
Most people don't and won't contribute to for-profit enterprises. Wonder how that fits into the PE calculus.
 
HFCS said:
Like I was saying in my post...the brand is only valuable because of the money tax payers and students have already given them in the first place, now Utah tax payers (whether the like UU or go there or not) will be taxed to market a brand owned by private equity. Gross. BYU grads will be taxed to promote and market this private equity acquisition, people who never to to college anywhere or who went in a different state will be.
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Similar to vouchers. I see a pattern.
 
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DBQR4CY said:
How is this not a Reverse Mortgage? What happens when a return isn't increasing each year or a failure to pay happens? Spots slashed? Tax payers on the hook?
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I think because there’s no security interest here; it’s not a mortgage. My understanding is they bought minority ownership in this new for-profit company.

I’m also really interested to see how they recoup money when/if this fails. My guess is taxpayers are on the hook
 
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