So It Begins... Private Equity in CFB

[CascadeClone]

I guess I just can't wrap my head around it even being an investment. Buying a professional sports team doesn't return much relatively speaking in annual profit, but they are bought by people with enough money to not give a rip, and the appreciation of the asset usually makes it worthwhile on the way out. PE always gives a rip about annualized return and I can't wrap my head around an entity tied to a state university appreciating in value. And if it isn't working, I would think it would be difficult to recoup much of the initial investment by selling it for parts.

Pro sports teams have been like the #1 capital appreciating asset for some time.

I don't think that is the Utah play here, and there isn't enough in the Yahoo article for me to understand what they are trying to accomplish and how.


But here's a bit on the pro sports valuations.
Full article

 

[CascadeClone]

The city sold the rights for an upfront fee, no ongoing revenue. Really dumb move.

I'm sure there was absolutely no kickbacks or "campaign donations" to the aldermen in charge of that transaction. Super squeaky clean in Daley-town!

In fairness, there is no shortage of incompetence that could have resulted in a stupid deal either.

 

[CyHans]

Turning CFB into a "for profit entity"...hmmm, wonder how well that will go for fans.

This will be a disaster for college football and college athletics overall. Some people will win but most, including the fans, will lose. Greed ultimately ruins everything.

Yep, the haves and have nots.

 

[cykadelic2]

This is not PE but a big deal for the B12:

 

[cykadelic2]

Clarification from B12 stating they will retain 100% equity stake:

 

[simply1]

I’ve heard that Wit was forced at Utah out by the new group. Rings true given he’s open to other jobs.

 

[clonehome]

It’s exhausting trying to keep up with it all - relignment, transfer portal, NIL with no rules, conference private equity, more realignment, NIL with $20.5M cap but can do NIL deals above cap, school private equity, still more realignment.

 

[FriendlySpartan]

It’s exhausting trying to keep up with it all - relignment, transfer portal, NIL with no rules, conference private equity, more realignment, NIL with $20.5M cap but can do NIL deals above cap, school private equity, still more realignment.

As a heads up the 20.5 mil isn’t NIL its revenue share.

 

[clonehome]

As a heads up the 20.5 mil isn’t NIL its revenue share.

Right, it’s payment to players. I don’t care what it’s called. NIL in its current form has nothing to do with name, image and likeness. It’s just payment to players. With the new rules the AD can pay up to $20.5 mil to players then the “NIL” starts from other sources. It’s all just payment to players.

 

[MartyFine]

 

[Cyched]

The consolation is that nobody could’ve possibly seen this coming.

 

[3TrueFans]

The consolation is that nobody could’ve possibly seen this coming.

Hey, they said they'll all get a chance to interview for their jobs again, with lower salary and worse benefits.