College Sports (Football)

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#176      
RabidDawgClassic
If the B1G takes private equity money, fans will be the ones who immediately notice the difference. Think ticket prices are high right now? They’ll double or triple once PE money is involved. The next price to raise will be parking. And concessions will be through the roof. Private Equity firms don’t put money into companies or organizations for fun. They expect an immediate return on investment.. and the quickest way to do that is to raise prices, cut staff then eventually sell the scraps of what remain.

Look no further than Las Vegas (MGM and Caeser’s properties) to see how private equity involvement changes the consumer experience.
 
#178      
RabidDawgClassic
Mr. Tibbs said:
💯. private equity is a HUGE mistake when you are already getting 70 million per school per year

it may be attractive for B12 & ACC schools , but not B1G or SEC schools

once PE gets involved , they will call all the shots .
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Well… as disgusting as it sounds, we can thank Michigan for quashing (at least for now) the B1G’s private equity dalliances.
 
#179      
fuddrules
Mr. Tibbs said:
💯. private equity is a HUGE mistake when you are already getting 70 million per school per year

it may be attractive for B12 & ACC schools , but not B1G or SEC schools

once PE gets involved , they will call all the shots .
Click to expand...
Not to confuse what the B1G was looking at prior, that was a private capital deal.

Also, for at least some of Illinois athletics, they've already dumped employees and use 3rd party companies to do the work.
 
#181      
sbillini
fuddrules said:
Not to confuse what the B1G was looking at prior, that was a private capital deal.

Also, for at least some of Illinois athletics, they've already dumped employees and use 3rd party companies to do the work.
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From the coverage I’ve seen of the proposed big ten deal and the caveat that a lot of the coverage has been confusing (probably because most sports writers don’t know the nuances of investment deals and don’t talk about them quite right), it certainly seemed like a private equity deal. The investor would get a share of profits from the newly created BTE, effectively holding an equity stake in BTE.

The main nuance was that BTE would only hold commercial rights (tv, merchandise, etc stuff that sits at the conference level) and not have say over sporting matters (rules, scheduling etc). So the big ten and schools would still control the product put on the field/court, etc but BTE, of which the PE firm would be a stakeholder, would control how that product is monetized.

In fact, the B12 deal isn’t really a private equity deal at all. There’s no direct economics Redbird receives. It’s more of a capital service program where it helps the conference better monetize its commercial opportunities and also provide school level financing arrangements.
 
#182      
Mr. Tibbs
fuddrules said:
Not to confuse what the B1G was looking at prior, that was a private capital deal.

Also, for at least some of Illinois athletics, they've already dumped employees and use 3rd party companies to do the work.
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I have no issues with privatizing some services .
contracting for many things that can be done more efficiently is smart . however, that has nothing to do really with trading control of assets for a payout of revenue
 
#183      
kmunt09
RabidDawgClassic said:
If the B1G takes private equity money, fans will be the ones who immediately notice the difference. Think ticket prices are high right now? They’ll double or triple once PE money is involved. The next price to raise will be parking. And concessions will be through the roof. Private Equity firms don’t put money into companies or organizations for fun. They expect an immediate return on investment.. and the quickest way to do that is to raise prices, cut staff then eventually sell the scraps of what remain.

Look no further than Las Vegas (MGM and Caeser’s properties) to see how private equity involvement changes the consumer experience.
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I LOVE and RELY on $100-$250 lower bowl Season Tickets, $3 hot dogs and drinks before games, and $25 parking.

VERY affordable family fun. Any higher, and you lose the true fans, and cater to the wealthy (less fandom), like the NBA in-arena crowd.

No harm in private SPONSORSHIPS of Schools or Conferences, but please no equity.
 
#185      
RabidDawgClassic
fuddrules said:
Not to confuse what the B1G was looking at prior, that was a private capital deal.

Also, for at least some of Illinois athletics, they've already dumped employees and use 3rd party companies to do the work.
Click to expand...
Private Capital, Private Equity… potato pahtahto. Call it what you want, but it’s essentially a corporate payday loan.
 
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