Big 12 Considering $1B in Private Equity

[ISU_Guy]

this all feels a lot like Amazon and Walmart. (SEC/BIG)
just taking out the Target, Staples and Kohls of the world.

Other stores trying to reinvent themselves to compete, but will never be able to. Probably just hope for some government intervention, policy change or collapse of the system which will probably be more likely since greed, corruption and power typically fall on its face in the end. Just will be interesting to know where some of these schools land after the damage is done.

if we are going to sell our soul, we should at least try the Saudi's.

 

[HouClone]

This PE thing is an influx of cash now. Why do we need cash now? The Big 12 problem is the revenue disparity between it and the Big 10/SEC. That won't be going away now or later. Conference naming rights I'll accept gritting my teeth.

 

[Hoggins]

Allstate Conference is fine and actually make some sense for these schools. Why include the number?!?

 

[alarson]

Can we get Dicks sporting goods in on this naming rights deal?

Big Dicks conference?

 

[Nor'MidWester]

If this works and the Big 12 gets a big pay day won't the big ten and sec just do the same thing and we're all in the same spot we were before? Just with all the players getting paid more than before. Instead of $75m vs $35m it'll just be $120m vs $60m and we're still losing players ans coaches.

 

[snowcraig2.0]

Selling off the naming rights is an infinitely better idea than getting in bed with private equity.

Both need to happen

 

[FriendlySpartan]

If this works and the Big 12 gets a big pay day won't the big ten and sec just do the same thing and we're all in the same spot we were before? Just with all the players getting paid more than before. Instead of $75m vs $35m it'll just be $120m vs $60m and we're still losing players ans coaches.

I think it depends on what the name change looks like. If it really is a change to “Allstate 12” like the internet is joking about then it’s a hard no. If it’s something like “the big ten conference sponsored/presented by Allstate” then I think it moves up to a solid maybe.

 

[CascadeClone]

The Anheusier-Busch 12 Pack

They could even release special boxes with 16 beers in them!

 

[AgronAlum]

How long before the big two equity firms step in - BlackRock or Apollo

It doesn’t really matter. They all own each other anyways.

 

[2speedy1]

Whats interesting to me......More like pisses me off.

All these Insurance companies that keep claiming they are losing money as they jack our premiums through the roof....all seem to be in the running to spend 10s of millions per year in these sponsorships.

If Allstate does this I dont want to hear the excuse they are losing money next year when they jack my premiums over 40% again, like they did this year.

 

[KnappShack]

Whats interesting to me......More like pisses me off.

All these Insurance companies that keep claiming they are losing money as they jack our premiums through the roof....all seem to be in the running to spend 10s of millions per year in these sponsorships.

If Allstate does this I dont want to hear the excuse they are losing money next year when they jack my premiums over 40% again, like they did this year.

But those Allstate hands will be on every net behind the goal posts!!

 

[CoachHines3]

Whats interesting to me......More like pisses me off.

All these Insurance companies that keep claiming they are losing money as they jack our premiums through the roof....all seem to be in the running to spend 10s of millions per year in these sponsorships.

If Allstate does this I dont want to hear the excuse they are losing money next year when they jack my premiums over 40% again, like they did this year.

thats allstate, stan

 

[ClubCy]

It’s always the Big 12’s fault. Every other conference is trying to save college athletics while we are destroying it bit by bit.

 

[1UNI2ISU]

It’s always the Big 12’s fault. Every other conference is trying to save college athletics while we are destroying it bit by bit.

I don't think he's wrong though. Yormark is the right guy for right now but he could absolutely being leaving a land mine behind once he's long gone and cashed out.

The bills come due eventually and Yormark knows he's not the guy that is going to have to pay them. I think it's pretty obvious with his history that he's not here for the long run.

 

[alarson]

I don't think he's wrong though. Yormark is the right guy for right now but he could absolutely being leaving a land mine behind once he's long gone and cashed out.

The bills come due eventually and Yormark knows he's not the guy that is going to have to pay them. I think it's pretty obvious with his history that he's not here for the long run.

He's not wrong, but the media are so quick to jump on things like this when the big 12 does them. Lamenting that he "doesn't care about college sports" when Yormark and he big 12 essentially have no power there. The big 2 drive that, everyone else is just being reactionary, including the big 12 presidents who are simply tasking Yormark with finding more money in whatever way possible (because the big 2 have also set the priorities that way first).

 

[HouClone]

I don't think he's wrong though. Yormark is the right guy for right now but he could absolutely being leaving a land mine behind once he's long gone and cashed out.

The bills come due eventually and Yormark knows he's not the guy that is going to have to pay them. I think it's pretty obvious with his history that he's not here for the long run.

I don't know anything about Dan Wolken, but I will give him a pass if he doesn't put his personal biases in his reporting, a la Paul Finebaum, Stewart Mandel, John Canzano, John Wilner.

Love what Yormark has and is doing but yes, he doesn't seem like a long-time conference commissioner. Just because he is not a lifer, doesn't mean his bold decisions will hurt the conference long term. But it something for the presidents to consider when signing off on his moves.

 

[FriendlySpartan]

I don't think he's wrong though. Yormark is the right guy for right now but he could absolutely being leaving a land mine behind once he's long gone and cashed out.

The bills come due eventually and Yormark knows he's not the guy that is going to have to pay them. I think it's pretty obvious with his history that he's not here for the long run.

Almost no established company or industry that has gotten involved with private equity has enjoyed the outcome. Just look at your healthcare system or even the recent John Oliver episode on red lobster. PE legit destroys everything it touches, it’s just a matter of time.

The name change sponsor is a decent idea though depending on the end result.

 

[Gonzo]

I think it depends on what the name change looks like. If it really is a change to “Allstate 12” like the internet is joking about then it’s a hard no. If it’s something like “the big ten conference sponsored/presented by Allstate” then I think it moves up to a solid maybe.

The day the "Big 10" becomes the "Big Amazon Conference" I'm officially tapping out. Unreal. I get bringing in private equity as a way to try leveling the revenue field, but selling the naming rights of the conference? That's insane.

 

[cyclone1209]

The SEC and Big 10 will eventually do the same. Money is God.

If private equity involved I can guarantee this will be a negative for the universities

 

[FriendlySpartan]

The day the "Big 10" becomes the "Big Amazon Conference" I'm officially tapping out. Unreal. I get bringing in private equity as a way to try leveling the revenue field, but selling the naming rights of the conference? That's insane.

Sure but if it’s “the big ten conference presented by Amazon” I don’t have a problem with it. If it’s the “Amazon conference” then yeah I’m with ya.

I have a much bigger problem with the PE getting involved. It’s just asking to be obliterated and Strip mined at a later date