Private Equity will soon be entering college sports space as owners of college teams
Private Equity will soon be entering college sports space as owners of college teams
For years and years these college Football programs have been supported by The university with the idea that if you Build this it's going to be better news For the academic side of the equation on Things that you will have alumni who are More willing to give back to the school Is is it robbing that entire agreement Of what was supposed to be there these Are just professional sports teams at This point so you and I were talking About it before the break this is the Gradual thing that we've seen for more Than a decade where they've just become Professional sports teams but always the Argument has been at the University Level why should we invest in these and The argument back has always been you do It because it builds for the University Strength and the academic investing that We could do down the road if if if You're now selling it to private Equity At a majority stake 51% and you no Longer will be the controlling partner In any of this how in the world can you Say that everything you've ever spent Has been for the good of the academic Side of things the flip side of that Argument and I don't disagree with Anything you said is that If you put private Equity money in here These schools are not expert at Monetizing their assets you know they're Administrators so on the one hand you're
Going to have private Equity come in and Figure out how to generate higher Revenue that's an argument for a Minority stake not a majority stake and That Revenue will then be used I I I Also don't think the argument for a Majority stake is what's going to happen At first I I disagree was that Mark lry Just being wishful thinking I have not Heard that as being the main way this is Going to work sounded like ridiculous I I think it's going to be a minority Spake of this special purpose vehicle The interest will then be you'll get More people that'll donate money to the School from donors you'll you'll Generate more revenue from that special Purpose vehicle that but to your point Let's be frank since football and to a Lesser degree basketball drives the Revenue what about the other sports at The University and that's where I buy Into what you're saying is there could Be an issue with what about Title 9 Women Sports and things like that that's An issue
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