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University of Utah athletics is entering into a $500M+ equity partnership

8,160 Views | 82 Replies | Last: 3 mo ago by milner79
UTExan
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Utah is a public state university. Everything has to be publicly disclosed.
“If you’re going to have crime it should at least be organized crime”
-Havelock Vetinari
Law Of The Quad
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Remember when the Mormons robbed the US Olympic fund.
jt16
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UTExan said:

As an Utah alum, this is good. We need some ultra fast wide receivers and some defensive line depth. That "U" and drumhead/feather image will soon be replaced by a $ sign and Emirates Air logo.


You don't have experience with PE do you? They'll be looking to cut cost and wring out any cash they can.
aggiehawg
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Quote:

You don't have experience with PE do you? They'll be looking to cut cost and wring out any cash they can.

Although my experience with PE is limited, they don't take a risk with their capitol unless they have already figured out the way to maximize ROI for themselves.

This isn't donor money, nor even NIL collective money because the ROI for them is pride in their school and team, not a pecuniary profit in their bank accounts.
UTExan
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jt16 said:

UTExan said:

As an Utah alum, this is good. We need some ultra fast wide receivers and some defensive line depth. That "U" and drumhead/feather image will soon be replaced by a $ sign and Emirates Air logo.



You don't have experience with PE do you? They'll be looking to cut cost and wring out any cash they can.


I figure cutting HR plus some coaches is a good first move. AI is our friend.
“If you’re going to have crime it should at least be organized crime”
-Havelock Vetinari
Dirt 05
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Just wait til the PE Fund directs coaches/players to lose in order to tank for bank.
themissinglink
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I put up with a lot to be an Aggie fan, but if the A&M football team is ever "owned" by KKR, Apollo, Carlyle, etc, I'm done with college athletics.

I get licensing and branding agreements, but owned by a PE and I'm out.
UTExan
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I am trying to learn more about this deal and a couple of things come to mind:
1.) Utah's big rival BYU is owned and operated by the Mormon church which has an investment arm (Ensign Peak Advisors) and a capital fund of about $100 billion which comes from church members tithing and contributions, which is tax deductible in the US. Undoubtedly BYU has access to that capital, and does not have to disclose, at least under state law, expenditures under FOIA as a private institution.
2.) since the recipient of PE funds is a public education institution, could there be a financial structuring that is tax friendly to investors? Possibly.
3.) the state will host the 2034 Winter Olympics and the university will receive financial infusions to host athletes in an already built Olympic village/current student housing as well as hosting to various Olympics-related activities so is it possible part of the ROI for the private equity will come from Olympics money? Again, that's something known only to the university and the private equity investment firm.

My point is that this has to be attractive financially to everybody and has been in study for over 18 months now. If it works for Utah, will it work everywhere? No. A unique set of circumstances MIGHT make it work. But big donors aren't going to just pump money into the athletics program forever and there is no Permian Basin in the Beehive state to provide PUF for capital construction.
Here's a local article that goes into more depth:
https://www.ksl.com/article/51417040/why-is-the-university-of-utah-partnering-with-a-private-equity-firm-for-athletics
“If you’re going to have crime it should at least be organized crime”
-Havelock Vetinari
flyrancher
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College football has become all money and politics. On a slippery slope to oblivion driven by the major media companies and a completely useless NCAA.
flyrancher
maroonthrunthru
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Wonder how long before the Saudi Sovereign Wealth Fund ditches golf and starts to invest in CFB ???
NattyOrBust
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Buzzkill said:

TheBonifaceOption said:

Buzzkill said:

Phatbob said:

Bag said:

its old white men

Whatchu got against old white men?



You ever stop and look around? Plenty to hold against old white men.

And I am one!

Cuuck behavior.


I looove Internet tough guys, they're such puss ys in real life




Says the self-loathing white liberal.... the very definition of a *****.
aggiehawg
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Someone is getting the hell outta Dodge.

milner79
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The slippery slope gets slipperier ...
 
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