Originally published at: https://pistolsfiringblog.com/reports-big-12-considering-private-equity-investment-exploring-selling-naming-rights/
The Big 12 is looking outside of the box for a cash influx.
Private equity getting involvedāIām sure that will end up well.
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Whatās the worst that could happen ??? Lol
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I understand the reason for the private equity investment, but doesnāt mean I have to like it.
As for the naming rights, call it āThe (Insert Sponsor) Big 12 Conferenceā.
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Couple thoughts:
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Kudos to Yormark. Dude is thinking outside the box and is clearly a home run hire. After the absolute fiasco that was Bowlsby, I have to give Yormark his due.
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Iām mixed on the Title sponsor deal. If you call it the āCorporate Nameā Big 12 Conference then Iād live it with. Not any different than the āAT&Tā Cotton Bowl. But if you lose the 'Big 12" and it just becomes āHome Depotā Conference, then Iāll be disappointed. But its free money so I get it and weāre in a hole compared to others so I get it.
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As for private equity, I think this is a positive. The conference is a private organization already, so selling a portion of its own value for shareholders is a way to inject cash. Thereās obvious questions about whether those private investors are acceptable with just the growth of the value of the league itself, or will they be expecting dividends or other ROI for their stake? But I realize that the NCAA consolidation carousel isnāt done turning. And a cash infusion plus the cachet of having private equity backers will go a long way in helping the Big 12 avoid the fate of the Pac 12 (adios) or of becoming the Mountain West (a nice conference with some nice schools that just donāt matter in the big picture).
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I see a couple of problems. First one is getting in bed with private equity, people in those spaces are sharks and could care less about anything other than making a buck and will ruin you to do that if need be. Not a real fan of this idea. Overall I can see the thinking that going with private equity and sponsorship deals to help the B12 catch up with the big dogs financially. Only problem with that is whatās to keep the big dogs from doing the same for probably more money. So these ideas end up being a net loss in the financial pecking order in the long run.
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Simple questions: do you think the quality of chain restaurants are as good today as what they were 20 years ago? Do you think the quality of music you hear on the radio is as good as it was 20-30 years ago? What about consumer goods? Do refrigerators and washers and dryers last as long as they used to? What about clothes? Are the clothes you buy as good as quality as they used to be? I think most people would answer no. The reason? Private equity and venture capital have taken over our food, consumer goods, etc. It would be hard to find something theyāve improved. I canāt imagine the disaster that will take place in college athletics. Although, the NCAA, conferences, television networks, and universities have already done a pretty good job screwing things up.
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I agree with you, but would note that you changed the measure. You asked if the quality is better? I wasnāt talking quality. I was talking money. Is the money better for todayās artists? Absolutely. Chipotle is certainly printing money. Money is the measure that matters. The quality of the Big 12 wonāt matter if we get relegated to MWC status. We ranked 5th in conference earnings last year, and the 4th ranked conference (PAC12) already imploded and the 3rd ranked conference (ACC) is in process of imploding. If the Big 12 doesnāt solve the money equation, it will eventually implode too.
As the whoring of college sports continues, the āJohnsā continue circling the growing cesspool!!!
There are no words to describe the sad state of college sports!!!
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I think the idea from Yormark is to prevent a repeat of PAC12 and ACC. So heās trying something that enhances the Big 12 being a lucrative landing spot for big-name teams cast aside. It helps us keep up with SEC and Big10. Also, is the Big10 as strong as we all think it is? Could Yormark make us strong enough to pick off some Big10 teams eventually?
The Big10 and the SEC are strong, but its due to their top heaviness. The question that someone will eventually ask: Why is Minnesota or Kentucky getting the same slice of pie that Georgia and Ohio State get? If that becomes the discussion, then look out. Those conference could implode very similarly to what the ACC is going through now.