I misunderstood the post. Yes, NU shouldn't accept a lower stake. At least not at that margin and on par with the lower levels of the conference. Otherwise, I stand by the rest of my comment.
B1G Investigating $2.4B Private Equity Investment, Uneven Revenue Distribution
- Thread starter Mavric
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I misunderstood the post. Yes, NU shouldn't accept a lower stake. At least not at that margin and on par with the lower levels of the conference. Otherwise, I stand by the rest of my comment.
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Ryen Russillo had a decent breakdown of this on his pod today.
Didn’t get to any conclusion, but just laid out the money and what it takes to run an entire athletic department.
Worth a listen.
My take, long term is…at some point the debt and dividends becomes due and it doesn’t bode well. I’m against this. Short term gain for long term pain.
Like, why wouldn’t the SEC or B12 take a 9B$ private equity at 20%? Or the B1G wait and have a $10B at 25% equity take? Opening too many doors leads to the monster behind one of them.
Didn’t get to any conclusion, but just laid out the money and what it takes to run an entire athletic department.
Worth a listen.
My take, long term is…at some point the debt and dividends becomes due and it doesn’t bode well. I’m against this. Short term gain for long term pain.
Like, why wouldn’t the SEC or B12 take a 9B$ private equity at 20%? Or the B1G wait and have a $10B at 25% equity take? Opening too many doors leads to the monster behind one of them.
MGoBlog writers take.
BIG TEN PRIVATE EQUITY DEAL ON HOLD, MICHIGAN AND USC FTW?
BIG TEN PRIVATE EQUITY DEAL ON HOLD, MICHIGAN AND USC FTW?
- making the ledgers balance for Title IX compliance (e.g. updates to Breslin are Women's Basketball expenditures.) Now you want to free the ledgers and the donors to pay players, so you need upfront capital to unravel the old system.
- Lock down a portion of Michigan's revenue. MSU, NW, IU, PU, RU, IL need to lock in a share of M/OSU revenue now because if the conferences break up for a super league they're not going to be invited. The length of the media rights contract is 20 years. This is CRITICAL. Michigan State has a real chance of becoming a mid-major.
- Ohio State wasn't on board until they got a clause giving them a bonus for selling more gear/stadium advertising. The way it's structured now they get more money than Michigan, which is all they wanted to hear.
- Why Michigan and USC don't want it: Michigan already got itself out of the debt cycle.