What does this mean for us?
The Big 12 is nearing an agreement with RedBird and Weatherford Capital that could deliver up to $500 million to conference members, while also creating a strategic business partnership with the firms, sources told CBS Sports’ Brandon Marcello. Yahoo Sports was first to report the news on Friday night.
A final decision on the move is expected in the next few weeks.
“To date, the RedBird ecosystem has delivered over $145 million of contracted revenue to the Big 12 and its member institutions,” the Big 12 said in a statement to Yahoo. “This partnership would provide the Conference with a world-class strategic and capital partner, while preserving 100% of the member institutions’ equity in the Big 12.”
Earlier this week, Utah, a member of the Big 12, finalized a landmark private equity partnership with New York-based firm Otro Capital that will help generate an estimated $500 million for the school. That deal, which would be the first of its kind in college athletics, is expected to be finalized in early 2026.
Last year, CBS Sports reported that Big 12 members were considering a first-of-its-kind private equity investment to ensure the league’s long-term financial and competitive security. On the table was a possible cash infusion of $800 million to $1 billion from Luxembourg-based CVC Capital Partners in exchange for a 15% to 20% stake in the league.
The Big 12 isn’t the only conference considering private equity. CBS Sports confirmed in October that the Big Ten is considering an enormous equity deal, potentially worth upwards of $2 billion. The deal would also extend the Big Ten’s grant of rights until 2046.
I think our deal isn’t a normal PE deal
No grant of rights
No PE controlling the big 12
It’s simply a loan if schools want it
Then it’s only the gains they help make happen which they take a cut
Seems like the best PE deal we could have that is out there
This makes since pretty much in alignment what I read in the broad details… Simple credit deal below 10% interest more detail it provided it seems, unlike in the 1st press release… Those who want go head borrow up to $31M if you wish, those who don’t, your choice either way…The tie in with CBS is interesting to say the least. CBS needs Saturday and Friday Night content. B12 could fill that void.
I just hope UH has independent finance & law professors review the deal before accepting any money vs non-profit development directors (fundraisers) and such.
Want to kill a deal just get lawyers involved🤣
Indeed, you bring up a crucial point, CBS.
Who is tied to CBS? The big10.
Our media deal goes through the 2030-2031 season.
https://www.cbssports.com/college-football/news/big-12-finalizing-six-year-2-3-billion-extension-of-media-rights-deal-with-espn-and-fox-sports/
The SBJ article mentions CBS being involved:
Nothing is set in stone but espn will have to “adjust/react” to this agreement.
I am glad that Yormark is positioning ourselves that way. Does it guarantee us a better media deal? No yet but at least we are making some “moves” I have not seen anything from the acc.
Yormark is a smart guy. I trust em.
He knows how to craft a bespoke that benefits the conference, and that’s something he’s said before when it comes to PE.
Boy…this sucks.
Encouraging our schools to go into MORE debt when so many of our schools are leveraged, as is?
Why not a PE to bring over FSU + one other from the ACC and then they get a % of the next tv deal since they INVESTED in raising our value?
Don’t be fooled. Yormack will grab his cut and hightail to the NBA.
By the time the Loan sharks are finished, you’ll only have the library left. Everything else sold off including the stadium.
Acres, you crack me up, man.
+1
UH Athletics, at least pre-B12, operated with a deficit. If UH elects to get a loan from the PE firm, does the university have to cosign to guarantee payment? We are now involving university leadership and the Board of Regents. If the PE expects to make a profit on the money it is lending the universities, what is the interest rate tied to?
There are a lot of questions to be answered. I expect UH to ask questions and do its due diligence before jumping in head first.
I think we’ll have a law firm.
I also imagine we have 100 lawyers on payroll in general counsel office.
You always go outside for something like this
Yormark has been doing a very good job of marketing the Big 12 product across multiple channels. TBS, TNT, CBS which will open up the opportunity to increase the media deal for the conference in the next go around.
Good news everyone. I have secured a deal at Caesar’s Palace.
They are letting me into the establishment and allowing me the opportunity to win big money.
Sorry for bragging, but had to share…
While this loan agreement might provide a lifeline to some schools in the conference, there will be others that will decline the offer.
What’s the collateral?
Probably conference revenue for the school is the collateral since the conference is involved.
Maybe they’ll accept our fleet of Cushmans,
Farish Hall, and a 15% stake in Itza Pizza.
I could be wrong but I assume the buildings on campus fall under the control of the state government. Any debt negotiations would be capped at a very low number. imo
Folks need to think for a minute…It’s $30M line of credit. None of us being privy to any details beyond what been reported. It may be a unsecured loan line, it could work like a revolving i.e… think credit card. or could be secured by assets outside the state periphery in case of default. Nobody knows, hell the folks who may borrow might not know because the type loan and it’s details may not be settled by the conference office may still be in negotiations Anything other wise is just pure speculation, on anyone part including mine.