The Big 12 is nearing a deal with RedBird and Weatherford Capital for a cash infusion of as much as $500 million

Sounds like a loan to me, the end is nigh.
Kind of...

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I'm not even going to pretend to know what this means or what RedBird would get out of this. What does the B12 have to do. How does RedBird capitalize off this to merit a $500 million investment?

The best way I’ve heard it explained is that college athletics has worked in the past to maximize revenue for its members. Now with the involvement of private equity, there will be a push to maximize profit for its member ”shareholders”. These will be run like corporations and cuts will be made in the interest of that profit.

So basically, once that agreement is signed, the clock starts ticking on Olympic sports at these schools.
 
Just a big word salad to me. What will the Big12 do with the money? How will it generate income? When will there need to be repayment? What kind of ROI is this company expecting? Schools have a chance to opt in?
 
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It feels like the majority of schools will eventually do something like this. The article says the SEC is looking into a deal and obviously the BigTen already came close to doing something.

I always assumed many schools would just have to cut costs to make room for player salaries but we are finding out that the schools have no plans to do that. I’m a little jaded because I’ve been through a number of re-orgs and cost cutting in the private sector so I sort of roll my eyes when the public sector acts like it’s an impossible task. Although to be fair, I do appreciate how much outrage the schools would have faced (probably political as well as from fans and alumni) if they slashed all of the non-revenue sports.
 

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