Alabama in talks with Private Equity Firms to sell part of athletic department?

[rezero]

I heard tonight on the Sports Animal that Bama has been in talks with private equity firms on funding models for the extra $20M to pay players, plus work down the red ink they have been bleeding. My guess if a team like Bama is working down that angle there are many more. This is the only article I could find, and it just touches on the topic, but they seemed to think it is much more likely on the radio than what is shown in the article.

https://alabama.rivals.com/news/could-a ... y-players-

[jcgmoi]

From your link:

Alabama . . . lost close to $28 million for the 2023-24 fiscal year after losing $12 million for 2022-23.

I believe every school uses creative accounting to make their profit/loss numbers best fit whatever their needs might be at the moment.

For example, here's a report dated March last year that shows Alabama with $214M in total revenue and $195M total expenses which doesn't match either number above.

https://sportsdata.usatoday.com/ncaa/finances

[winonsports]

I heard tonight on the Sports Animal that Bama has been in talks with private equity firms on funding models for the extra $20M to pay players

Mizzou has had something similar in place with its collectives ever since Now It's Legal became a reality.

[edwin drood]

I heard tonight on the Sports Animal that Bama has been in talks with private equity firms on funding models for the extra $20M to pay players

Mizzou has had something similar in place with its collectives ever since Now It's Legal became a reality.

And the kids across the street running the lemonade stand are quite similar to The Coca Cola Company.

[winonsports]

I heard tonight on the Sports Animal that Bama has been in talks with private equity firms on funding models for the extra $20M to pay players

Mizzou has had something similar in place with its collectives ever since Now It's Legal became a reality.

And the kids across the street running the lemonade stand are quite similar to The Coca Cola Company.

Another example of showing that the N does stand for Knowledge.

That is one of the stupidest correlations I've ever read.

[rezero]

I heard tonight on the Sports Animal that Bama has been in talks with private equity firms on funding models for the extra $20M to pay players

Mizzou has had something similar in place with its collectives ever since Now It's Legal became a reality.

And the kids across the street running the lemonade stand are quite similar to The Coca Cola Company.

Agree. Apples and Watermelons. What is happening is schools and athletic departments are starting to split (see UK) and Private Equity firms will start working their way into the ownership of college athletics. The large schools have high intrinsic value can delay and watch the landscape before making a move. For example, there will always be someone willing to buy Notre Dame athletics department for $500-600M. The problem will be the next tier schools that do not move first as there is only so much money to go around.

[edwin drood]

I heard tonight on the Sports Animal that Bama has been in talks with private equity firms on funding models for the extra $20M to pay players

Mizzou has had something similar in place with its collectives ever since Now It's Legal became a reality.

And the kids across the street running the lemonade stand are quite similar to The Coca Cola Company.

Agree. Apples and Watermelons. What is happening is schools and athletic departments are starting to split (see UK) and Private Equity firms will start working their way into the ownership of college athletics. The large schools have high intrinsic value can delay and watch the landscape before making a move. For example, there will always be someone willing to buy Notre Dame athletics department for $500-600M. The problem will be the next tier schools that do not move first as there is only so much money to go around.

Exactly. I'm most interested in seeing how these investors will see a return on their investment. If an investor group puts up $1 million for a top QB, do they get a cut of all ticket sales, or do they gamble and go for a cut of the expected NFL (or NBA) contract? And what happens to the so- called "Olympic" sports? Those lower attendance sports like soccer, track and field, field hockey.. Today, those sports are largely funded by football and basketball. What's their future? It's a brave new world.

[winonsports]

What is happening is schools and athletic departments are starting to split (see UK) and Private Equity firms will start working their way into the ownership of college athletics.

If they take ownership, then they will have to own and FUND the entire department and all the sports they support.

Most athletic departments strive to break even, so any investment will have a tough time showing any dividends. The only perks most investors will see will be being part of the atmosphere around the team.