B1G Exploring Private Capital Investment

[Seaofred92]

Sources: Big Ten mulling $2B private capital deal

The Big Ten is in talks about a private capital deal, which includes a 10-year grant of rights extension through '46, that would infuse at least $2 billion, sources told ESPN.

www.espn.com

The Big Ten is in discussions about a private capital deal that would infuse at least $2 billion to the league and its schools, sources told ESPN on Wednesday.

The discussions include a 10-year extension of the league's grant of rights until 2046, sources told ESPN, which would ensure long-term stability in the Big Ten.

According to sources, the private capital deal and grant of rights extension have been discussed for months and presented in multiple forms. A deal and the grant of rights extension would also be a distinct blow to the outside entities attempting to form super leagues around college sports.

While there is support from nearly the entire league, according to sources, a few of the league's biggest brands -- including Ohio State and Michigan -- are still in discussions with the league. The aim is to have unanimous support before a vote, sources told ESPN.

A decision either way on the private capital deal is expected in the upcoming weeks from the schools in the Big Ten, sources said, and nothing is considered imminent or certain. There are three different private capital entities being considered by the Big Ten, sources told ESPN, and the league has not taken a vote on any plan.

 

[Kazman5k]

 

[Seaofred92]

Troy Dannen - Visionary:

One of the philosophies behind the move is that the Big Ten believes its ability to generate revenue holistically has been under-served, and they'd be sharing a small percentage of greater profits back with the outside investor.

It also helps the league potentially better scale and leverage its 18 members.

Another source familiar with the Big Ten's discussions summed it up this way: "We're underselling the strength of what we do the way we are structured. This is a way to organize ourselves better."

As a micro example of that, Nebraska athletic director Troy Dannen was quoted in an Associated Press article last week on the looming discussion of teams wearing corporate logos on their jersey: "If you jump in now, and I'm going to get a little bit (of money) because of the jersey patches. I would really like to see if there's an opportunity for our conference to put all those jersey patch rights together and, all of a sudden, they're worth a whole lot more to the institutions when 18 are playing instead of just one."

 

[RedSavage]

View attachment 59397

It would not surprise me if this was Saudi money. It's kind of sketchy how much they are buying up and trying to get involved in lately, especially in the sports world

 

[2010sarenevercomingback]

Gay & retarded, but predictable & inevitable based on lack of institutional/governmental leadership.

Now everybody's gonna bum rush towards that euro soccer model where the jerseys are basically an advertisement for an arab airline that maybe mentions the team name in a small patch.

 

[TampaBaySkers]

Is this another mole sting ?

 

[Kazman5k]

That Wilson dittman sports patch across the jock strap is gonna go hard

 

[HughJanus]

It would not surprise me if this was Saudi money. It's kind of sketchy how much they are buying up and trying to get involved in lately, especially in the sports world

They also just dropped $55 Billion on the videogame company EA. (Madden, NCAA FB) I don't like it.

 

[BradWesley]

It would not surprise me if this was Saudi money. It's kind of sketchy how much they are buying up and trying to get involved in lately, especially in the sports world

Pic of a Runza on a uniform patch

 

[Flabio]

Why would you need a private equity firm to decide to put patches on everyone’s jersey? They would be consultants to show how to squeeze as much money as possible out of everything?

 

[RedSavage]

They also just dropped $55 Billion on the videogame company EA. (Madden, NCAA FB) I don't like it.

Yep, that's part of what I was referring to

 

[Tonkasker]

B1G supremacy > divisional matchups with Cockeye state

 

[nja13]

I am not sure I understand this. What is in it for the entity giving us $2 billion? Is it basically a loan? We get 2 billion now but pay it back over 20 years or whatever? With interest, I assume.

 

[Pepe Silvia]

I understand that college sports are run by whores, but I'm surprised they are so cheap

$2 billion split 18 ways is $111 million each. And having that it involves extending the grant of rights through 2046 it sounds like we're looking at a 20 year deal.

So the Big 10 schools are willing to whore themselves out for $5.5 million per year?

 

[herbsinator]

Sounds like they’re not giving up board seats or voting control, so don’t have a lot of issues with it honestly. The way the article makes it sound, the investor would just get the same cut as the other teams. This is way more accretive than just adding in some other team at this point. Also keeps the member teams more tied at the hip probably and makes it less likely that OSU/Michigan try to break off into a separate super league.

 

[Fargo Husker]

This is so fucking stupid

 

[Herbie]

I don’t get the point of it. Would the 100,000,000 be upfront atleast?

Have the big 10 ratings been bad this year?

 

[Irv]

Troy Dannen - Visionary:

One of the philosophies behind the move is that the Big Ten believes its ability to generate revenue holistically has been under-served, and they'd be sharing a small percentage of greater profits back with the outside investor.

It also helps the league potentially better scale and leverage its 18 members.

Another source familiar with the Big Ten's discussions summed it up this way: "We're underselling the strength of what we do the way we are structured. This is a way to organize ourselves better."

As a micro example of that, Nebraska athletic director Troy Dannen was quoted in an Associated Press article last week on the looming discussion of teams wearing corporate logos on their jersey: "If you jump in now, and I'm going to get a little bit (of money) because of the jersey patches. I would really like to see if there's an opportunity for our conference to put all those jersey patch rights together and, all of a sudden, they're worth a whole lot more to the institutions when 18 are playing instead of just one."

Holistically, scale, leverage

When they use all of the MBA buzzwords, you know you're in good hands.

 

[Irv]

Why would you need a private equity firm to decide to put patches on everyone’s jersey? They would be consultants to show how to squeeze as much money as possible out of everything?

Apparently you can't put patches on your jerseys without an infusion of $2 billion in cash. The patchmakers probably connected us to the Saudis to make it possible.

 

[BorWhiskey]

I’m on the same page as others here in not understanding what’s in it for the investors nor am I sure I know what the schools are doing with the money. We aren’t at risk of meeting revenue share salary caps, and theoretically NIL has to be real endorsements, so is this more money to put into weight rooms and stadiums?