“Jonathan Marks, Chief Business Officer of Elevate College and Global Marketplace, said the platform has already closed funding deals with two Power Four athletic departments, though he declined to share details. He expects to complete another three to six deals by the start of this year’s college football season.”
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Let’s see if they end up like swa
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I would love to see how deals are structured!
PE investors are very good are ensuring that their deals leave as much of the risk as possible with the entity receiving the investment.
I can well imagine that the deal leaves the 2 unis on the hook to pay up regardless of what happens.
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I would think this could be Florida State and Clemson trying to buy their way out of the ACC…
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Selling future revenues for today dollars is NEVER a good plan except for the short-term employees.
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Penn State and UCLA
Is that a guess?
Looks like Boise State is considering it too!
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Correct. I cannot imagine any scenario where the university/conference getting PE money will be financially better off in the long run. And by long run o don’t mean 10a+ years!
PE has a very short horizon! For them 3 years is the long run!
Like I said in a previous post, i have to trust Yormark on tabling PE talks.
In the brave new world of college sports, let the universities that have to be first in line to try new things be the guinea pigs and identify all the negatives, so they can be fixed when the B12 is ready to talk.
SWA is a public company. It has an activist shareholder, but it has nothing to do with private equity.
Scenario: Florida State can’t get into the SEC. It sells 20% of its future TV revenues to a private equity firm at a fair discount to expected future cash flows. Under the guidance of the private equity firm, Florida State makes it to the SEC and cash flows jump 40% when Florida State earns SEC TV money. Both Florida State and the private equity firm win.