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Big 12 Strikes a Private Equity Deal in Hopes of Growing Revenue, AP Source Says
The five-year partnership gives the conference $12.5 million and access to up to $30 million in repayable credit for each of its 16 schools.
- On Thursday, the Big 12 approved a five-year agreement with RedBird Capital Partners and Weatherford Capital, becoming the first major college sports conference to strike a league-wide private equity deal.
- Designed to grow revenue, the partnership addresses cash shortages facing the league's 16 schools as they seek to compete with the Big Ten and Southeastern Conference in football and basketball.
- RedBird will provide a $12.5 million capital infusion, while the 16 schools gain access to a $30 million line of credit to be repaid with double-digit interest over time.
- While Utah became the first school to sign a private equity deal with Otro Capital, the Big Ten and SEC are exploring similar partnerships, with the SEC working with Goldman Sachs.
- Short-Term financial gains could trigger long-term consequences if universities break from the NCAA to form a so-called 'super league,' a prospect considered as a potential solution to revenue disparity.
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Total News Sources34
Leaning Left10Leaning Right3Center15Last UpdatedBias Distribution53% Center
Bias Distribution
- 53% of the sources are Center
53% Center
L 36%
C 53%
11%
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