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FSU Athletics Going Private
Posted: Fri Aug 04, 2023 9:34 am
by dore74
Here is a link to the full article in Sportico.com.
https://www.sportico.com/business/finan ... 234733152/
"Florida State University is working with JPMorgan Chase to explore how the school’s athletic department could raise capital from institutional funds, such as private equity, according to multiple people familiar with the plans.
PE giant Sixth Street is in advanced talks to lead a possible investment, said the people, who were granted anonymity because the specifics are private. Institutional money has poured into professional sports in recent years, from the NBA and global soccer to F1 and golf, but this would break new ground by entering the multibillion-dollar world of college athletic departments.
The school is considering a structure similar to many of those pro sports investments, where commercial rights are rolled into a new company, the private equity fund invests in that entity, and then recoups its money via future media/sponsorship revenue. That’s how Silver Lake structured its investment into the New Zealand All Blacks rugby team, and how CVC organized its $2.2 billion Spanish soccer deal with LaLiga."
Imagine what some of the SEC or Big10 behemoths would be worth...the plot thickens... I can't imagine how a school like ours competes with something like this.
Re: FSU Athletics Going Private
Posted: Fri Aug 04, 2023 9:57 am
by FayetteDore
Might as well just go ahead and spin athletics off. The disconnect with the mission of universities is only increasing. Not saying that student athletes shouldn't share in the proceeds they generate (which we discuss ad infinitum) but NIL and the portal have already made star athletes in the big 3 college revenue sports more professional than student.
Re: FSU Athletics Going Private
Posted: Fri Aug 04, 2023 10:29 am
by AuricGoldfinger
FayetteDore wrote: ↑Fri Aug 04, 2023 9:57 am
Might as well just go ahead and spin athletics off. The disconnect with the mission of universities is only increasing. Not saying that student athletes shouldn't share in the proceeds they generate (which we discuss ad infinitum) but NIL and the portal have already made star athletes in the big 3 college revenue sports more professional than student.
https://www.theonion.com/florida-state- ... 1819568680
Re: FSU Athletics Going Private
Posted: Fri Aug 04, 2023 12:19 pm
by OldDude
dore74 wrote: ↑Fri Aug 04, 2023 9:34 am
Here is a link to the full article in Sportico.com.
https://www.sportico.com/business/finan ... 234733152/
"Florida State University is working with JPMorgan Chase to explore how the school’s athletic department could raise capital from institutional funds, such as private equity, according to multiple people familiar with the plans.
PE giant Sixth Street is in advanced talks to lead a possible investment, said the people, who were granted anonymity because the specifics are private. Institutional money has poured into professional sports in recent years, from the NBA and global soccer to F1 and golf, but this would break new ground by entering the multibillion-dollar world of college athletic departments.
The school is considering a structure similar to many of those pro sports investments, where commercial rights are rolled into a new company, the private equity fund invests in that entity, and then recoups its money via future media/sponsorship revenue. That’s how Silver Lake structured its investment into the New Zealand All Blacks rugby team, and how CVC organized its $2.2 billion Spanish soccer deal with LaLiga."
Imagine what some of the SEC or Big10 behemoths would be worth...the plot thickens... I can't imagine how a school like ours competes with something like this.
No surprise that FSU would lead the way like this. College athletics, especially football, has become a giant farce.
Re: FSU Athletics Going Private
Posted: Fri Aug 04, 2023 12:55 pm
by charlestonalum
AuricGoldfinger wrote: ↑Fri Aug 04, 2023 10:29 am
FayetteDore wrote: ↑Fri Aug 04, 2023 9:57 am
Might as well just go ahead and spin athletics off. The disconnect with the mission of universities is only increasing. Not saying that student athletes shouldn't share in the proceeds they generate (which we discuss ad infinitum) but NIL and the portal have already made star athletes in the big 3 college revenue sports more professional than student.
https://www.theonion.com/florida-state- ... 1819568680
And this was 2006...
Re: FSU Athletics Going Private
Posted: Fri Aug 04, 2023 1:15 pm
by bernstml19
lol the private-equity-ization of our public universities and colleges (even if its "just the athletics department") is pretty much the most dystopian thing I have heard to date. I have no mouth...
Re: FSU Athletics Going Private
Posted: Fri Aug 04, 2023 4:08 pm
by vandy05
I've been waiting for the day when we hear that the Saudis have invested in an athletic department in order to further sports wash their money. I kind of brushed the thought off when I literally had it this morning. But now it feels almost imminent with this news. If they're willing to take private money the Saudis are certainly going to offer the best valuation. I'm pretty laissez faire on money in college sports because I want the players to get their piece of it after not getting their piece for so long. But the Saudis would be about ten steps too far for my liking.
Re: FSU Athletics Going Private
Posted: Fri Aug 04, 2023 4:16 pm
by AuricGoldfinger
