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KingJames's picture KingJames
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| 9 months 2 weeks # | OT: Big 10 "Discussing 2B Private Equity Deal"

I worked for a company that was bought be a private equity firm, they were buying companies to package them up to sell to a larger company, during that time we got investment capital to build our products at a larger scale and we got profit sharing which was great. It was probably the best few years I worked when you balance everything from a job. But we were a lean company already and engineer ran and focused so we got money to engineer more, and more pay on top of that. As al the companies under them grew they became more profitable during a sale, a d then they sold and that company was fine, but then they got a bad leader and were a mess and they sold off pieces.

So while it is 100% easier to buy and slash so the books look good, a few exist to prop up smaller companies and build portfolio that iz attractive because of the people and technologies they possess. That is much more work and doesn't work for every industry.

this however end with Purdue and Northwestern losing funds to be door mats.

HokieAndrew's picture HokieAndrew
| 9 months 2 weeks # | OT: Big 10 "Discussing 2B Private Equity Deal"

I feel like there's at least two teams in the BIG Teeorteen who would be dumb enough to flip their stadium and surrounding property for cash now and then pay to lease it back for a thousand years. Something catastrophically dumb is going to happen and result in runzas being $45 and having pay-toilets installed in Happy Valley before this is all over.

No one has been able to make a cogent case for what PE gets "out" of a football team, much less a conference, that can actually generate revenue aside from someone getting absolutely railed in the biblical-but-not-the-good-way sense.

Hell USF just did a shit deal with PE to finance their new stadium buildout that resulted in terms that were worse than those commercially available and costing more over a crippling time horizon to boot. These outfits are payday lending with better suits.

HokieinFLA's picture HokieinFLA
| 9 months 2 weeks # | OT: Big 10 "Discussing 2B Private Equity Deal"

This was one of my long-term fears with Pay for Play.

The public was only going to front the money for so long.

I thought the non-P2 would be the first to go this route in an attempt to make up the TV contract disparity.

The fact that the P2 is going this direction is a clear indication that everyone is going to have to.

Private Equity Ruins Everything.

Get ready for fees that you couldn't even imagine if you tried on everything related to Athletics.

P.E. Firms will take every single thing you like about an entity and make you hate them. See Southwest Airlines.

Alum07's picture Alum07
🦃 LEG KING 🦃
| 9 months 2 weeks # | OT: Big 10 "Discussing 2B Private Equity Deal"

Private equity usually ends up in everything involved being stripped for parts so the investor can pocket all the proceeds and dump the carcass for pennies on the dollar.

This would be a short term gain for the Big Ten but it would quickly kill off everyone that isn't one of their top performers. It wouldn't be long til the investor pressures the league to sever ties with everyone like Indiana, Northwestern, Purdue, Maryland, etc.

Fuck that shit. Keep Saudi money out of college sports

hokiebuzz's picture hokiebuzz
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| 9 months 2 weeks # | VT BoV Approves increase of athletics budget by $47.1m this year, growing to a total budget of $212m in 2029

Yeah I think the post 1999 bump happened because several things aligned at the right time. Nowadays it is so much easier to find out about schools and schools market themselves much better. It just happened VT was somewhat nationally unknown but at the same time I think we were positioned well academically to grow into the spotlight. VT already had good programs and this was the perfect marketing tool at the time. I think the majority of it was VT probably should have already been larger than it was in 1999.

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