B1G Exploring Private Capital Investment

[Flabio]

PE is essentially banking with barely any rules or regulations. Generally strips all the liquid assets out of a company, makes significant G&A cuts and then tries to ramp up revenue until the company blows up. Then they piece it up, sell it for scrap.

Haven’t looked into it however no clue how PE can do something that the B1G can’t do for itself with some added consultants or personnel to bring specific expertise. Must be something to it.

 

[cwessel76]

There ain’t no way Michigan and USC are opposing something for the good of anyone but themselves. And if it’s bad for them, I’m on board.

They want their own PE guys in there.

There are no good guys in this scenario.

 

[cwessel76]

PE is essentially banking with barely any rules or regulations. Generally strips all the liquid assets out of a company, makes significant G&A cuts and then tries to ramp up revenue until the company blows up. Then they piece it up, sell it for scrap.

Haven’t looked into it however no clue how PE can do something that the B1G can’t do for itself with some added consultants or personnel to bring specific expertise. Must be something to it.

Don’t forget the over leveraging.

 

[KidsSeeGhosts]

PE is good at making money for themselves, the health of the entities they purchase is irrelevant to them. They can absolutely run a business into the ground while making money on it, it's their specialty.

I'd just like to hear an explanation for why the richest conference in the country is so desperate for immediate cash that they would agree to this

I wouldn’t say that’s even an accurate assessment of PE beyond the pop culture take, but beyond that a lot of PE these days is just in credit/equity investment that isn’t even tied to what you’re alluding to here. I do not think this take is even relevant to the deal given how it’d have to work, but will have to see details.

 

[Flabio]

Don’t forget the over leveraging.

The beauty of levering the companies up with debt is you can just not pay it in bankruptcy and they get an spe with nothing in it. Amazing what a huge amount of lobbying can do for an “industry”.

 

[herbsinator]

The beauty of levering the companies up with debt is you can just not pay it in bankruptcy and they get an spe with nothing in it. Amazing what a huge amount of lobbying can do for an “industry”.

What does the government have to do with this? No one is forcing lenders to make these loans and the lenders aren’t in the business of losing money…

 

[KidsSeeGhosts]

The beauty of levering the companies up with debt is you can just not pay it in bankruptcy and they get an spe with nothing in it. Amazing what a huge amount of lobbying can do for an “industry”.

Plenty of legit and realistic complaints about PE. This isn’t one of them.

 

[Flabio]

Plenty of legit and realistic complaints about PE. This isn’t one of them.

Tell us all about your industry.

 

[KidsSeeGhosts]

Tell us all about your industry.

Worked w/ sponsors for over a decade, including a bunch of restructuring.

 

[Kazman5k]

The consumer ends up getting boned the most

 

[Flabio]

Worked w/ sponsors for over a decade, including a bunch of restructuring.

Impressive. Restructing debt with limited rules and regs is really complex work.

 

[KidsSeeGhosts]

Impressive. Restructing debt with limited rules and regs is really complex work.

Yeah, generally speaking there are pretty extensive rules and regulations on restructuring debt.

Not to mention that what is actually happening at that point is getting fucked by the long dick of your secured creditors, some of which probably have flipped to distressed funds at that point whose investment thesis and goal is to push the company into Chapter 11.

You don’t really see that different of behavior between non-PE and PE companies in the shadow of Chapter 11 FWIW.

 

[nja13]

To repeat myself, I really don't understand the ins and outs of this deal. It's pretty easy to get caught up and read things that make me think this is a disastrous move for the league. Then there are things, like the tweet below, that make it sound like a decent deal.



This is my elementary-level understanding of what this might be. Please correct me if I have it wrong.

It seems like this is another school buying into the Big Ten for $2 billion. Like any other school, this new school will recieve a share of all Big Ten payments in the future. Except this new "school" isn't a school and it doesn't have a football team. They are just counting on those future payouts to add up to more than $2 billion in the long run.

Is that close?

 

[Flabio]

To repeat myself, I really don't understand the ins and outs of this deal. It's pretty easy to get caught up and read things that make me think this is a disastrous move for the league. Then there are things, like the tweet below, that make it sound like a decent deal.



This is my elementary-level understanding of what this might be. Please correct me if I have it wrong.

It seems like this is another school buying into the Big Ten for $2 billion. Like any other school, this new school will recieve a share of all Big Ten payments in the future. Except this new "school" isn't a school and it doesn't have a football team. They are just counting on those future payouts to add up to more than $2 billion in the long run.

Is that close?

Maybe or something like this. 😆

https://www.ft.com/content/02a5edbe-9d93-11e7-8cd4-932067fbf946

 

[biscuitgaze01]

Unclear if this is happening, but if we have to put advertising patches like this is F1 or European soccer on our historical blueblood jersey I’m going to be pissed.

 

[Pepe Silvia]

Unclear if this is happening, but if we have to put advertising patches like this is F1 or European soccer on our historical blueblood jersey I’m going to be pissed.

Next year's blackout has a lot of sponsorship opportunities. For more info, visit blacked.com

 

[nja13]

Next year's blackout has a lot of sponsorship opportunities. For more info, visit blacked.com

Bumble once sponsored the Clippers. We could get BlackPeopleMeet.com.

 

[Baron Winnebago]

Next year's blackout has a lot of sponsorship opportunities. For more info, visit blacked.com

Why are you sending people to my homepage?

 

[2010sarenevercomingback]

To repeat myself, I really don't understand the ins and outs of this deal. It's pretty easy to get caught up and read things that make me think this is a disastrous move for the league. Then there are things, like the tweet below, that make it sound like a decent deal.



This is my elementary-level understanding of what this might be. Please correct me if I have it wrong.

It seems like this is another school buying into the Big Ten for $2 billion. Like any other school, this new school will recieve a share of all Big Ten payments in the future. Except this new "school" isn't a school and it doesn't have a football team. They are just counting on those future payouts to add up to more than $2 billion in the long run.

Is that close?

I think that summary is somewhat accurate, although a 10% stake means they have the weight of about 2 schools, so they would have a bigger seat at the table than any B1G member (although theoretically, their ownership is only of this new subsidiary that gets all the revenue/licensing payouts, not the conference itself).

That format is also basically what private equity is. The only difference between this and "private equity" is that it's a public pension fund that's acquiring the stake instead of a private hedge fund. The author basically says as much in the replies.

I remain extremely skeptical that this is a good long-term deal for the health of CFB/B1G/individual programs, and likely means a California government entity will have their fingers in many of the conference workings.

 

[CornFed Gregger]

I think that summary is somewhat accurate, although a 10% stake means they have the weight of about 2 schools, so they would have a bigger seat at the table than any B1G member (although theoretically, their ownership is only of this new subsidiary that gets all the revenue/licensing payouts, not the conference itself).

That format is also basically what private equity is. The only difference between this and "private equity" is that it's a public pension fund that's acquiring the stake instead of a private hedge fund. The author basically says as much in the replies.

I remain extremely skeptical that this is a good long-term deal for the health of CFB/B1G/individual programs, and likely means a California government entity will have their fingers in many of the conference workings.

O so we’re going to circle back to Covid big ten & dipshit Howard calling for Nebraska to get booted for having common sense