Big 12 considering private equity investment of up to $1 billion for as much as 20% of conference
The proposed deal with a Luxembourg-based firm would bring a massive influx of cash to the league
www.cbssports.com
i guess the conference is undervalued?
- Thread starter AVeritas
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www.cbssports.com
Hmmmm. The end is near.Big 12 considering private equity investment of up to $1 billion for as much as 20% of conference
The proposed deal with a Luxembourg-based firm would bring a massive influx of cash to the league
Not sure how to feel about private equity coming in. 20%. A quiet 20%. Highly unlikely.
So it's an infusion of cash. Then what?
obviously, the devil's in the details. but this is about future earnings potential of the new conference, not the past. so an investor looks at the portfolio and says: relative to its peers, this conference is substantially undervalued. i can invest in it and make better than bank rates or other investment alternatives.
how you say? well basketball is clearly worth more than they're getting for it. that needs to separate from football as a standalone entity and be marketed accordingly. commissioner yormark has already proposed that. football has added some undervalued entities, four of them actually.
so for me, this is a good place for a long term investment. down the road i can sell my 15% share for way more than this $1 billion investment, and in the interim gather dividend income that beats bank rates.
how you say? well basketball is clearly worth more than they're getting for it. that needs to separate from football as a standalone entity and be marketed accordingly. commissioner yormark has already proposed that. football has added some undervalued entities, four of them actually.
so for me, this is a good place for a long term investment. down the road i can sell my 15% share for way more than this $1 billion investment, and in the interim gather dividend income that beats bank rates.
100% of the time PE firms make the product better and set it up for long term success. This can only mean good things for the Big12.
The Big 12 has all kinds of ideas.
www.espn.com
Sources: Big 12 mulls windfall for naming rights
The Big 12 is considering generating hundreds of millions of dollars in revenue by selling its naming rights to a title sponsor, sources told ESPN.
it certainly seems undervalued relative to its peers. i believe that's reflected by this negotiation.
the allstate conference has a certain appeal given the breath of it.The Big 12 has all kinds of ideas.
Sources: Big 12 mulls windfall for naming rights
The Big 12 is considering generating hundreds of millions of dollars in revenue by selling its naming rights to a title sponsor, sources told ESPN.
the p12 is gone. as i wrote above, this is an investment house looking at the portfolio, for lack of a more nuanced term, saying: i can make money investing in this undervalued asset.
But still this is an injection of cash. There will be strings attached. This would be like saying I had huge profits....but didn't make any debt service payments.
well yeah. if you invest, you expect returns. then you hope the asset value increases so that at some point in the future you can sell it for more than you paid. that's the venture capital game. essentially, the house would own 15% - the schools 85%.
But they're going to want more in return than here's a bunch of money because I believe in you? Right?
investment houses don't have a bias 'cept to make money. they don't care about gbr, emaw, school colors, tradition, religion or dixie doo. they care about roi, nothing else. they are cold hearted in that way. their loyalty is to their investors. so they buy assets they believe will reward their patrons. how that's structured with the b12, i'm sure that's a huge issue. but put in simplest terms, they would be due 15% of the profits, 15% of the decisions, and own 15% of the venture.
well, i don't believe bob devaney thought this would be happening in the game. but it's evolving rapidly. who thought we would be paying recruits with nil, paying them directly after house v. ncaa, seeing oregon play rutgers in the b10, and so on? it's really happening a lightning speed. this is just a natural outgrowth of that as what was once about academics is now about commerce.
The Big 12 without OU, Texass and Nebraska is as relevant as you on this board.😪😂Big 12 considering private equity investment of up to $1 billion for as much as 20% of conference
The proposed deal with a Luxembourg-based firm would bring a massive influx of cash to the league
BWAHAHAHAHA!!!!
Wait a second…
BWAHAHAHAHA!!!!!
Wait a second…
BWAHAHAHAHA!!!!!
Nothing says Big XII football like european influence.
It’s a second rate conference. Nothing is going to change that.
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But it’s not undervalued. The free market has judged your little Cracker Jack league but you (league members) just don’t want to accept it. Comical really…
having spent much of my career in m&a, it's hard not to take your thoughts for what they are in this matter. i won't characterize them. other than to say the private equity company is the free market screaming at you that the b12 is undervalued, literally screaming with a billion dollars. and let me say that if there's cracker jacks at play here we know where they're located between your ears.
You portray yourself as doing M&A in Manhattan. You just don't tell people it's Kansas. Lmao.
I work in private equity and we have an in-house saying: "If you go to bed with PE, don't be surprised when you get f....." I'm always surprised when the investee realizes, belatedly, they are getting f'd. The B12 should sleep in its own bed, alone.
I don’t pretend to know market trends and such, but isn’t the landscape littered with failed enterprises and bankrupt entities due to bad investments? Not saying the Big 12 is a bad investment, but what are the guarantees that the return will be a huge windfall down the road? Imagine if the B1G or the SEC made another raid to the Allstate conference, won’t that hurt the investment potential?
If I am Kansas I would be a little nervous about the Private Equity idea because they might get locked into a grant of rights agreement that could hurt them moving conferences.
It is no secret that Kansas would leave the Big 12 in a split second if offered by the Big 10 or SEC.
It is no secret that Kansas would leave the Big 12 in a split second if offered by the Big 10 or SEC.
Yes. Here is a link to a list of some of the worst investments in history. Investing a billion dollars in the Big 12 conference could definitely make it onto this list someday (if it actually happens).
The 11 Worst Investments in History: A Recap + Takeaways
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Yeah I would love to invest tons of cash in a conference that the vast majority of members dont want to really be in and would leave in a moments notice if the opportunity ever presented itself.
Its a conference comprised of kids picked last in the schoolyard.
It's a good investment as in they can raid the conference cash as tv contracts go up with adding more historically grade B entities. It doesn't stop the massive divide coming between the BIG/SEC and everyone else. BIG/SEC gain FSU, Clemson, Miami & North Carolina as Luxembourg profits by stealing from the Virginia Tech, NC State & Louisville additions.
Aren’t you the hypocritical crybaby who’s always getting his tampon in a twist about ad hominem attacks?
san francisco, dallas, philadelphia, kansas city, indianapolis, but retired in manhattan, yes.
the cracker jacks comment was his, i just reminded him. and speaking of ad hominem, why don't y'all get back to the topic?
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