Private Equity in CFB

[Dale]

(I really just wanted to rile up an opinion on this)

 

[Dale]

On3 reporting PSU and UCLA have entered PE related deals

 

[Dale]

Both schools have denied the description of the nature of the reported deal.

 

[Dale]

Other reporting today/recently:

Boise State Expects PE Investment ‘Within the Next 6 Months’

The Boise State Broncos are “actively considering” private-equity investment, says athletic director Jeramiah Dickey.

t.co

Florida State Taps JPMorgan for Equity Raise as ACC Decision Looms

Florida State is working with JPMorgan to explore how its athletic department, facing a $30M revenue gap, could raise capital via private equity.

t.co

 

[NDRock]

(I really just wanted to rile up an opinion on this)

I don’t know what any of it means but college football is dead.

I do that right?

 

[NDMD]

It's like these universities have not paid attention to what PE is doing do other industries. If any school signs on with PE they deserve what they get.

I don't care what their endowment is or how many donors they have, if PSU signs with PE it will confirm their status as a poverty program.

 

[Black Irish]

I don't want to be a knee-jerk PE naysayer but having that get deep into college athletics is troubling. I'd hate to see PE firms siphoning off money that should be getting plowed back into the Schools. This definitely isn't my sector but at first glance I don't see the potential. I figure schools with potential for a nice ROI for private equity are the big names that already have fat endowments. The schools that don't have the fat endowments likely have less to offer PE investors so they wouldn't come swarming around with their checkbooks open. But I'm not a finance bro, so I'm not an expert.

 

[Jiggafini19Deux]

Private Equity plundered Sears, Toys R Us and of course Hooters.

I'm sure this will be fine, though.

 

[Black Irish]

Private Equity plundered Sears, Toys R Us and of course Hooters.

I'm sure this will be fine, though.

To be fair, each one of those companies had its own particular problems that put them on a bad path. PE involvement likely didn't help, but each one would have gone down anyway. I have some experience with Hooters (strictly professional) and could see they were in trouble years ago.

 

[SeekNDestroy]

To be fair, each one of those companies had its own particular problems that put them on a bad path. PE involvement likely didn't help, but each one would have gone down anyway. I have some experience with Hooters (strictly professional) and could see they were in trouble years ago.

Hooters stopped hiring attractive women.

 

[Jiggafini19Deux]

To be fair, each one of those companies had its own particular problems that put them on a bad path. PE involvement likely didn't help, but each one would have gone down anyway. I have some experience with Hooters (strictly professional) and could see they were in trouble years ago.

Undoubtedly. Asshole Capitalism meets Asshole Capitalism.

Private equity's reach is nevertheless just about everywhere and the vast majority of these firms suck to ludicrous levels.

 

[TorontoGold]

As a scumbag finance bro, I don’t think this will work like the typical big box PE play where it’s load up the legacy firm with debt and spin off the real estate assets. These institutions are driven by location because Florida State would not work as Florida State-Delaware, which is different than a Sears.

The most likely outcome is that the PE firms will take over the administrative functions of the sports departments (marketing/HR/ops). They’ll say something like “streamline efficiencies” which is just decimating live service and getting janky AI response bots. Most probable outcome is that a stadium like Doak Campbell becomes Wells Fargo Doak Campbell Stadium and the live support team for ticketing is handled by a teenager in New Delhi.

 

[INLaw]

The term “off shoring” needs to be always met with a bullet

 

[FDNYIrish1]

My second job is working for a major well known financial firm and I don’t want these fucking geeks anywhere near college football.

 

[Sea Turtle]

As a scumbag finance bro, I don’t think this will work like the typical big box PE play where it’s load up the legacy firm with debt and spin off the real estate assets. These institutions are driven by location because Florida State would not work as Florida State-Delaware, which is different than a Sears.

The most likely outcome is that the PE firms will take over the administrative functions of the sports departments (marketing/HR/ops). They’ll say something like “streamline efficiencies” which is just decimating live service and getting janky AI response bots. Most probable outcome is that a stadium like Doak Campbell becomes Wells Fargo Doak Campbell Stadium and the live support team for ticketing is handled by a teenager in New Delhi.

😆 I literally had that experience yesterday. I called a company, got an american sounding AI bot, selected my issue, then got a young sounding Indian gal.