Private Equity in College Sports
- Thread starter YaketySax
- Start date
Anyone in major college athletics even considering accepting their terms should be fired on the spot. You have an age old institution and decades of demonstrated cash flow. You should be able to easily beat their rate by going traditional.
The real question is how are these schools going to handle the joke that is title 9? They now need football more than ever, so that isn't getting cut but it's a ton of scholarships. So that means a bunch of mens sports just have to go. For most, basketball is probably a break even or at least has value in brand visibility.
So I guess most schools will have men's football, basketball, and maybe a few others as scholarship sports; but cut the rest. It's the only way to balance the money and title 9.
The real question is how are these schools going to handle the joke that is title 9? They now need football more than ever, so that isn't getting cut but it's a ton of scholarships. So that means a bunch of mens sports just have to go. For most, basketball is probably a break even or at least has value in brand visibility.
So I guess most schools will have men's football, basketball, and maybe a few others as scholarship sports; but cut the rest. It's the only way to balance the money and title 9.
If you don’t think Private Equity gets involved you are delusional.
When there are BILLIONS involved, they jump in feet first.
It’s coming and there is nothing anyone can do to stop it.
When there are BILLIONS involved, they jump in feet first.
It’s coming and there is nothing anyone can do to stop it.
You do understand what private equity is? Because you act like it's involuntary.
You have to let them in. That's the point. You don't let them in unless you absolutely need them. Noone in major athletics needs them.
Smaller schools need them but pe probably won't care because it won't be profitable.
Have you read about the terms of the House lawsuit settlement this week? I'm starting a thread on it. Every school, out $20M+, annually, NCAA BBall tourney revs cut.
Maybe, maybe most Big 10 & SEC schools can swallow this. Not the rest, not ACC or Big 12, certainly not Group of 5, absolutely cannot be financially done by Big East or all non football schools.
I agree and that's what I said. Schools with decades of established revenue can get traditional terms if they even need it (probably smart to do it). Others will be the ones looking at pe but the interest might not be reciprocal.
The 10% every year for 10 years is the key. That makes it much more doable but it's still a lot of money.
One thing is for sure: all the worthless buddy type jobs are gone from these ads. That's a fact.
Agree, and good riddance to dead weight "associate ADs" with 6 figure salaries who never coach or help an athlete in any way
This is why PE WILL be involved.
ACC and Big12 will not keep up with SEC and Big10 DOLLAR wise. They will need large chunks of money to compete with them.
And this is going to end what seems to be an unlimited number of off the field analysis positions. UGA is as guilty, maybe has the most of these positions as anyone in the country. I know Napier hired a large number at UF, but tha was/ is the Saban way. But schools will have to decide if they need 50 off field analysis or 10 and use the saved resources on players. Just a thought.
Going to be interesting watching these ads lose loads of staff but not miss a beat. It's amazing how many people are on staff that do nothing essential.
Even more interesting in a few years to compare the athletic departments vs the rest of the school. The rest of the school doesn't have to operate in a traditional p&l environment which is why those other departments with laden with high income individuals that do virtually or literally nothing.
Interesting to say the least. But we both know who will ultimately be the ones hurt by all this. It won't be the box seat guys who either show up or give their tickets to someone. It will be the families who save to make 1 game a year, tickets will go up, food and drink go up, parking, memorabilia.
And in a couple years streaming starts. I am an old man, I have no clue how ghat works and no one to help me, so if I am still alive I will be back to my childhood listening to ghe games on the radio, if they are still broadcast.
Forget the athletics dept staff cuts. A whole bunch of negative revenue sports coaches are gonna face severe salary reductions. Softball coaches making $750k, Vball coaches over $800k, track & field coaches over a mil.
Some people when the topic of college sports comes up love to scream "BUT ONLY 10 OR 12 ARE PROFITABLE!@#%". yeah, know why? They are government entities, the goal isn't to profit, it is to spend all the money. To grow the annual budget year after year, but never have anything left over.
A lot of non football sports coaches have gotten huge money over the last 10, 15 yrs. Now athletics depts gotta come up with $20m in revenue sharing, every yr. Budgets will be balanced on the backs of those who don't pay for themselves.
Some people when the topic of college sports comes up love to scream "BUT ONLY 10 OR 12 ARE PROFITABLE!@#%". yeah, know why? They are government entities, the goal isn't to profit, it is to spend all the money. To grow the annual budget year after year, but never have anything left over.
A lot of non football sports coaches have gotten huge money over the last 10, 15 yrs. Now athletics depts gotta come up with $20m in revenue sharing, every yr. Budgets will be balanced on the backs of those who don't pay for themselves.
Private Equity, otherwise known as selling your soul to a few rich guys who will do everything they can to milk ever single short term cent out of you then cut bait leaving you high and dry to fix the ****ing long term mess they’ve left you in.
If I were a coach of a minor non profit making male sport I would be concerned about the school continuing the sport. At one point lots of schools had wrestling programs, many were cut with TitleIX. The last major change in college sports. Now NIL and PE could make that seem like a small change. Let's get to reality here, are the female athletes going to sit quietly thanking NIL and PE for a fraction of the amount a male football or basketball player is getting? Not likely. Title IX has the ability to put the squeeze on programs that receive federal funds.
Agree. Those jobs are toast or they will go back to being a few extra bucks for a math professor and all those sports to non scholarship. There really is no way around that given the financial and legal restrictions.
If the NIL is actually from private donors and stays out of the budget of the school, won't Title IX have zero leverage/impact?
Excellent point and thought. This has been the subject of conversation down here. UF has too many "off the field" positions and look for Napier to get a little pressure to trim the fat. NIL costs are increasing and that would be the first place to look to save resources.
I really don't know. I know in HS a booster club for baseball raised funds to build a really nice HS facility. One of the softball parents was an attorney and filed suit and the results were the softball team had to have a facility on par or the baseball team couldn't use their facility. Didn't help the lawyer was also a state rep.
But to answer your question, as best as I can, if the school receives federal funds, then yes it will effect it. But lots here more knowledgeable about law than me.
I read about "Napier's Army" on the UF message board. I suppose Billy has a soft spot in his heart for those positions, Saban gave him a chance when Dabo cut him loose. Plus working for Saban he saw te benefit of all those positions. Kirby has his share, I can't give you an exact number but wouldn't surprise me if UGA led the conference in the. Some do a really good job and make sure events run smooth. Others look at not of film.
Billy Napier is a fine man and as far as I know runs a clean ship. But to be honest a few shakers and movers are looking for more wins, especially against our "rivals". FSU to name one. Losing to that crowd is unacceptable because some still see them as the girls school they once were.
We are a long way from being even close to Georgia but I guess one can dream. Georgia is not going anywhere soon, except to the top of the football world. The Bulldogs were the best team last year in my book.
Surprised the big 12 is going that route. Assumed they had the money to either self fund or go traditional. Maybe the pe terms were just too good if you ignore the gaudy naming rights. Who knows. Looks like op was right.
I have known Billy his entire life, his dad was one of my best friends. I coached with his dad when Billy was his QB and about 15 other years. I know what kind of man he is. Wins will be hard to come by with that schedule this fall, I think that group you speak of will be very vocal with another year of no bowl.
Dawgs had a good team, but didn't get the job done when they needed to. So we were stuck playing FSU. I was a little disappointed Kirby didn't hang 100 on that roster tampering outfit. bunch.
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