While the NCAA faces a multi-billion dollar settlement that would cut revenue sharing to leagues and schools, the Big 12 Conference is considering a “first-of-its-kind” private equity investment to “ensure the league’s long-term financial and competitive security,” according to a report from CBS Sports.
The league’s website says it could receive an infusion of between $800 billion and $1 billion from Luxembourg-based CVC Capital Partners, which manages more than $200 billion in investments worldwide. In return, CVC would own 15% to 20% of the Big 12’s stock, with some of the money going directly to the 16 conference members, according to CBS Sports.
The investment is a first for college sports, but it likely won’t be the last. The Players Era Festival, a new college basketball event run by the National League in Las Vegas, is backed by RedBird International Media Investments, a private investment firm focused on building a portfolio of quality media assets around the world, according to the company’s website. Florida State University is partnering with private equity firm Sixth Street to maximize its value as it seeks to leave the ACC.
The school will have to find additional sources of revenue due to the $2.8 billion settlement payment. House of Representatives v. NCAA The lawsuit will now go before a district court judge for final approval. If approved, the university would have to cut its share of the funding and give $1.65 million to current and former student-athletes over 10 years. Additionally, Power Four leagues would have to give up to $22 million a year to student-athletes, according to CBS Sports.
The cash infusion from CVC, combined with the league’s media rights deal, will put the Big 12 “much closer” to matching the Big Ten’s media rights deal, a source told CBS Sports. Big 12 schools currently earn $31.7 million per school from the league’s deals with Fox and ESPN, while Big Ten schools earn about $75 million per year after the conference’s media deals with Fox, CBS and NBC.
As for the future of the Big 12 and its member schools, CBS Sports reported that CVC’s investment is expected to keep the league in the mix for the long term. The league recently underwent a major conference realignment. Texas and Oklahoma will move to the SEC next season, while Arizona, Arizona State, Colorado and Utah will join from the Pac-12. Last season was also the first for BYU, Houston, Cincinnati and UCF to join the Big 12.
The Big 12 Conference and Gonzaga University have been in talks about the possibility of the Bulldogs joining the conference in the future, with Brett Yormark looking to maximize college basketball value by bringing in one of the most successful programs of the past decade. Since the two sides met in Spokane last fall, there has been no indication as to whether the league will extend an invitation.
West Coast Conference Commissioner Stuart Jackson said Gonzaga intends to remain a member of the West Coast Conference, which added Washington State University and Oregon State University as members for two seasons starting next fall. The conference expanded again this spring with the addition of Grand Canyon University and Seattle University, which are set to join in 2025.
It’s unclear when a deal between the Big 12 Conference and CVC will be finalized, with CBS Sports reporting that many league presidents are still not entirely convinced.
