https://www.cnbc.com/2024/12/19/private-equity-looks-to-buy-in-to-college-sports.html

If you want to see college teams play that play just for the fun of the sport, you need to go to intramural leagues. Everyone could do that.

But then the joke is on us. As soon as that got popular enough to sell concessions or tickets then add space …. That changes too.

Maybe a dumb question, but which program worth investing into needs outside money? Does A&M? Texas? OU?

Would PE firms invest in Baylor? Tech? Iowa State? Maybe, but seems a stretch. They'd invest in big name schools with a chance at the CFP.

If it was this year, maybe Boise needs the money, but I doubt they are a consistent threat at post-season play

I know it's been the case for a while now that this was more about business than football, but man it is still a "we've missed the plot" moment to see an article about college football where somebody drops "EBITA"

JDCAG (NOT Colin) said:

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I know it's been the case for a while now that this was more about business than football, but man it is still a "we've missed the plot" moment to see an article about college football where somebody drops "EBITA"

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I am waiting for the free market capitalist types on this board to come out and say that college football is "for profit" and NCAA should run it as they deem fit and the Govt should stay out. All right wing talking points of the radio talk show hosts.

It's a lot more fair to the players, but combining an unlimited transfer portal with NIL has already ended college sports as we know it. I have always enjoyed college sports far more than the professional ranks because I found the experiences of college athletes more relatable. They largely came from a region of the country somewhat close to home, had to grind for a number of years but towards the end they came into their own. There was a sense of accomplishment at the end of their time at the institution. With athletes, you could follow their efforts and see that development and really felt proud at their success. That's still the case with some guys on the roster, but the fact of the matter is I don't have the same emotional attachment to the transfer portal additions.

College basketball went through this 20+ years ago.

FSU was trying to get in bed with private equity as far back as 2022. PE dodged a bullet on that one.

https://www.sportico.com/business/finance/2024/florida-state-sixth-street-private-equity-talks-over-1234819808/
(12/10/24)

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Florida State University and private equity giant Sixth Street mutually agreed to end talks about a possible investment into the athletic department about a year ago, according to multiple people familiar with the negotiations.

The talks, which began in 2022, were among the earliest known conversations about how institutional capital might break into modern college athletics, and they advanced quite far, with one source saying the two sides had the structure of a deal in place before things drifted apart. Two main points of uncertaintyFSU's legal battle to leave the ACC, and ongoing settlement talks in House v. NCAAproved too hard to overcome, said the people, who were granted anonymity because the details are private.
. . .
The settlement would pave the way for schools to more directly share revenue with athletes. Many in college sports have viewed that settlement, should it happen, as a potential catalyst for PE deals.

FSU spent $172 million on athletics in fiscal 2023, the 17th-highest total among all public schools, according to Sportico's college finance database. In the ACC, only Clemson ($174 million) spent more. But Florida State, its fans and its boosters are looking toward the Big Ten and SEC for comparisons, and they have been outspoken about their fears of falling behind financially. The top spending school in the Big Ten was Ohio State at $275 million; in the SEC it was Texas at $232 million.
. . .
Though the Sixth Street talks didn't end in a deal, FSU has sought other capital. The Seminoles' athletic department is looking to raise $326.6 million from a series of bonds issued this year and backed by athletic department revenue.

Sixth Street has more than $80 billion in assets under management. Its sports portfolio includes a controlling stake in the NWSL's Bay FC; investments in the San Antonio Spurs, Real Madrid and Barcelona; and ownership of premium hospitality and experiences company Legends.

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infinity ag said:

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JDCAG (NOT Colin) said:

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I know it's been the case for a while now that this was more about business than football, but man it is still a "we've missed the plot" moment to see an article about college football where somebody drops "EBITA"

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I am waiting for the free market capitalist types on this board to come out and say that college football is "for profit" and NCAA should run it as they deem fit and the Govt should stay out. All right wing talking points of the radio talk show hosts.

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Since over 110 of the FBS schools are state schools, there is literally no way for government to be out of it.

Well it's a smart business move. Live sports are the only thing cable networks make a profit on.

BMX Bandit said:

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infinity ag said:

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JDCAG (NOT Colin) said:

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I know it's been the case for a while now that this was more about business than football, but man it is still a "we've missed the plot" moment to see an article about college football where somebody drops "EBITA"

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I am waiting for the free market capitalist types on this board to come out and say that college football is "for profit" and NCAA should run it as they deem fit and the Govt should stay out. All right wing talking points of the radio talk show hosts.

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Since over 110 of the FBS schools are state schools, there is literally no way for government to be out of it.

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While most of the schools are state schools, the athletic programs don't use state money. It will be interesting to see how this plays out. Personally my detachment from college sports has already started.

The athletic department not using state money is it really relevant to the point that the government is inextricably linked to these teams making it impossible for the government to not be involved. Even all of the private schools in FBS are taking federal money.

PE will get involved in conferences instead of programs and they will use their influence to ensure the outcome they want by providing uneven resources to certain teams.

AgLA06 said:

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I just don't get the over dramatics. I guess ignorance truly is bliss.

The only thing that has changed in decades is the transparency.

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Sorry to target you, but this is a dumb comment that has run its course.

• Money has always been involved in this sport behind closed doors, but never to this extent.
• Transfers used to effectively require graduation, which meant that the average fan could follow a player's development and develop a real rooting interest in individual players.
• Roster turnover of >1/3 of the team used to be rare.
• There were (occasionally) penalties for doing the things that are happening today, which meant that only some players were focused primarily on the financial side. This meant a larger core of the team was focused on the performance of ... well, the team.

I understand that all of these changes have made things better for the players, but they are also creating a much worse product for the fans, and the fans are ultimately the ones that pay the bills. As with other areas that have experienced such changes, the decision makers will either have to figure that out very shortly, or college football will go the way of NASCAR and pro wrestling.

New Mexico State brought in $30M of revenue in 2022. Football is a profitable business so I don't blame PE for trying.

gabehcoud said:

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Welcome back from your coma.

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The article is from today.

Honestly, I think the biggest problem with all of this is that the peak level of play hasn't really increased. You've just diluted the talent from a smaller pool of teams to a larger group and while the average level of play seems to have increased and brought parity, the excitement seems to have dwindled, at least for me.

In the NFL you have crisp play across the league and it is entertaining to watch. Even still there are some teams in the NFL that are just unwatchable except for die-hards. Much of college football just isn't entertaining and I wonder how long people will stay interested enough to continue upping the ante. At some point do certain programs just go 'Ivy League', and give up on the new game?

Revenue sharing definitely seems to be the solution and I know it is being discussed at the top, but how do you mimic the NFL divisions and get to a true play off when you have such a top heavy structure? Will the SEC and Big 10 ever loosen their stranglehold to help the game?

PeekingDuck said:

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Honestly, I think the biggest problem with all of this is that the peak level of play hasn't really increased. You've just diluted the talent from a smaller pool of teams to a larger group and while the average level of play seems to have increased and brought parity, the excitement seems to have dwindled, at least for me.

In the NFL you have crisp play across the league and it is entertaining to watch. Even still there are some teams in the NFL that are just unwatchable except for die-hards. Much of college football just isn't entertaining and I wonder how long people will stay interested enough to continue upping the ante. At some point do certain programs just go 'Ivy League', and give up on the new game?

Revenue sharing definitely seems to be the solution and I know it is being discussed at the top, but how do you mimic the NFL divisions and get to a true play off when you have such a top heavy structure? Will the SEC and Big 10 ever loosen their stranglehold to help the game?

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College football has seen record viewership this year and the playoffs are probably going to smash records. So even though you think it's dying. The exact opposite is true.


Last year there were two regular season games with over 10M viewers in the regular season. This year there were seven games over 10M.

Honestly - why are College football and basketball programs still associated with any University?

jrgypsum said:

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Honestly - why are College football and basketball programs still associated with any University?

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Because former students and current students and family of both will throw a lot of money at sports. Season tickets, contributions, hotel rooms, food, clothing, etc. Tie the program to a school and you have a ready supply of those willing to spend a crap ton of money on sports.

Just wait until some judge rules that making them attend classes is some sort of constitutional violation. I mean, I think we all know these top players aren't going to class, but still.

jrgypsum said:

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Honestly - why are College football and basketball programs still associated with any University?

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I've asked this question repeatedly the last several months. The answer is that there needs to be a divorce. I welcome anything that pulls what we call college football away from the ACADEMIC institutions, including the founding of a separate nationwide minor league. It's high time that Texas A&M separate from what happens on Saturdays. Yeah, it's sad, but there is simply no longer any logical or rational connection between the business and the academics.

Quote:

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The answer is that there needs to be a divorce

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Why is this needed? Sounds like more of a weird desire on your part that isn't really needed in anyway.

College athletics are a large part of what makes American colleges so great to attend and what keeps us going back. There is still an enormous connection.

There no reason for a divorce. Unless you are a commie.

jt16 said:

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Whichever athletic department does this will suffer. PE makes money by aggressively cutting costs and don't care if quality takes a hit

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It's definitely a short-sighted play but I'm not sure any program can resist the inevitable.

But let the free markets decide lol

Welcome to Kyle Field…home of the Texas Aggies brought to you by Bain Capital - where we "embrace possibility and realize potential".
That in and of itself is quite humorous.