they would go if there were financial reasons that justify same, yes. i do not believe florida wants fsu in the sec, nor usc,e clemson. i would think the b10 would favor uva and unc over both for academic reasons. globally, these two additions to the b12 would bring some parity.
like missouri going sec to fill the aTm deal, i believe ou went sec to compliment texas. both texas schools drove those moves. ou is most likely to struggle in the new league, like nebraska has in the b10. yeah, that's a sidebar. i believe texas will excell, unlike aTm. missouri has always been the outlier. sec schools still loathe their presence.
That was my point to averitas. This isn't a gift. They're going to expect an annual return on that investment which imo would atleast be equal to one more mouth to feed from conference gross not net revenue each year. AND that money will have to be paid back at some time.
that's not how it works unless it is structured as a loan. if the investment house is buying equity in the league then it will share accordingly, 15%. thus, what it wants in value growth. so at some point it can sell it's share for a profit. adding fsu and clemson would do that almost overnight, maybe.
In 5-7 years there will be no more conferences
that's a matter of conjecture not fact. i could see a power three conference model just as well under some sort of unified rules and perhaps even income distribution.
Here's a really dumb question maybe. How do you come up with a value of a conference? Example: 1 billion $ would be 20% of the value of the b12. How does one come up with that and who really owns it?
there are all sorts of ways to value. discounting the cash flow would be one. one would have to make assumptions about interest rates, risks, growth, etc. but i suspect that's what is happening here. the investment house is looking at the b10 and sec and saying to itself that the b12 is undervalued on a relative basis. thus, that's an investment opportunity for them.
If you’re a person who considers the NFC and AFC “conferences”, then sure. Call them what you want.
The problem with your line of thinking is that when FSU, Clemson, Miami, North Carolina, Duke, etc...all become available, the SEC and the Big Ten will be very much in the driver's seat to select who they want.
It's too late. They had their chance a long time ago. They weren't strong because of Texas. Everyone bolted that could. Now Texas and Oklahoma have left it's a shell conference. It's not going to be able to recover from this by adding Utah and Arizona State. It's on the way down the crapper. The writing's on the wall. When the ACC disintegrates the Big 10 will grab the top two. The SEC will get two. Notre Dame will decide how the rest of the dominos fall.
well, that's the risk management part, isn't it. one would assume the investment house has done their due diligence before ponying up a $1 billion offer to buy this 15-20% equity share. the guys/gals there are so far ahead of the curve you and i travel that it's not even measurable. if they're not, they're fools. and i suspect that's not the case given the dollars at play here. we can be assured that the scenarios have been laid out numerous times before the board, the risks defined, the strategy understood, and the price defined well before they ever went to see yormark. what that strategy is - it's only a guess on our part at this point.
That’s what I was saying/referring to in reference to regional divisions of some type of league (complete with collective bargaining.) It may soon be a “professional” league.
that's a legit question that would be subject to ruling should it happen, the equity investment. this is all rumor to this point in time. but clearly, it would be a question the conference would have to address with tax counsel before moving forward.
