Its a fight to be the predominant middleman in college athletics I had no clue was transpiring. Learfield became somewhat vulnerable.
https://www.sportico.com/business/commerce/2022/learfield-losses-top-1-8-billion-since-2019-as-pandemic-pain-lingers-1234685417/(Aug. 2022)
Quote:
. . . Learfield, the dominant deal-maker in college sports, had more than $1.8 billion in losses in the three years between 2019 and 2021, according to an Endeavor SEC filing.
The numbers illustrate how Learfield's business was challenged in the lead-up to COVID-19, and during the pandemic itself. The information is disclosed in Endeavor's most recent annual report because as a publicly traded business, Endeavor must account for equity stakes it owns in businesses it doesn't control. Endeavor owns 42% of Learfield
. . .
Learfield is the primary middleman in connecting brands and media companies with athletic departments across the country. The business currently works with more than 1,000 schools in some capacity, handling multimedia rights for nearly 200 of them, including roughly 75% of the Power Five.
Learfield had a net loss of $164.3 million last year on revenue of $1.09 billion, according to the Endeavor document. In 2020 the business posted a net loss of $996.2 million on sales of $760.5 million, while in 2019 Learfield lost $689.1 million on revenue of $1.3 billion.
These financial disclosures are a central part of a lawsuit filed last month against Learfield by its competitor Playfly, which has a convoluted financial relationship with Learfield at the University of Florida. Playfly claims that Learfield failed to fulfill the full extent of their partnership and that the company's wider financial struggles are part of the reason.
. . .
I'd be a little worried about Learfield too going forward what with Payfly Jay Mohring up clients. [/Jerry Maguire]
Learfield has since recapitalized, restructured, and is entering new deals.
https://www.sportico.com/leagues/college-sports/2024/learfield-colorado-agreement-force-majeure-1234767524/(Feb. 2024)
Quote:
. . . Third-party businesses built on acquiring the multimedia rights to university athletic departments have had a tough go of it in recent years.
Just ask Learfield. The rightsholder for over 200 schools has spent the post-COVID era trying to extricate itself from a number of its financial entanglements with top-tier programs, such as UCLA and Florida State, while staring down a billion-dollar debt payment to its lenders.
. . .
But its new business offensive has plenty of built-in defense, as revealed in the company's fifth amendment to its multimedia rights (MMR) deal with Colorado, which was signed last summer but only made public last month. The deal commits Learfield to paying Deion Sanders' employer at least $46.8 million, and possibly a lot more under shared revenue, for the next ten years through 2035.
. . .
It's unclear if this extensive language will be prioritized in all new Learfield MMR deals. A week after its amended Colorado deal was made public, Learfield and Alabama announced a 15-year extension to their partnership. (An effort to obtain a copy of that agreement, through a public records request, was denied by the school.) . . .
And just because it's funny
Quote:
. . . More recently, another longtime Learfield partner, Penn State, filed a federal lawsuit late last year after Learfield formally protested PSU's request-for-proposal process that led to the school awarding its business to Playfly. The existing Learfield-Penn State deal runs through May 31.
. . .
Colorado's new Learfield deal was signed on Sep. 7, 2023, one week before Learfield restructured its business to alleviate the financial pressure of $1.1 billion in outstanding debt. Three of its largest creditors became its majority owners, allowing the company to clear $600 million in debt and bring in another $150 million in new capital.
Afterward, Learfield CEO Cole Gahagan expressed eagerness to pursue new business opportunities after having spent so many months dealing with debt relief.
"I wasn't hired as a restructuring CEO," he said at the time. . . .
Hate restructuring CEOs so much. Stupid debt relief. [/Homer]
