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The Big 12 has entered into a "strategic partnership" with RedBird Capital and Weatherford Capital, which provides the league with $12.5 million and allows member schools to opt into a capital credit line of $30 million.
Wednesday, May 6, the University of Cincinnati athletics became the latest Big 12 school to decline the loan.
"We appreciate the Big 12's continued focus on innovation and identifying creative ways to generate new revenue opportunities for the conference and its member institutions," UC Director of Athletics John Cunningham said. "At this time, Cincinnati does not plan to utilize the investment credit option made available through the league's partnership with RedBird Capital."
Schools could use the money to keep up with the ever-changing payrolls of revenue sharing as a result of the House vs. NCAA decision, which went into effect last July 1. The firms are interested due to the possibility of bigger media rights deals. The Big 12's current deal with ESPN and Fox, worth $2.28 billion, expires in 2031.
Houston, BYU, UCF, West Virginia and Utah have already passed on the $30 million loan. Utah is unique as they have their own private equity partner, Otro Capital. The Utes unique deal is worth $500 million and has brought about Utah Brands and Entertainment LLC to manage revenue-generating sports.
UC makes it six schools that have passed on the capital credit line.
They're the majority owner of AC Milan (soccer) in Italy, a stakeholder in the Fenway Sports Group, which includes the Boston Red Sox, AC Liverpool and PGA golf, an investor in Skydance Media/Paramount Global, Artists Equity (involving Ben Affleck and Matt Damon) and SpringHill Company with LeBron James.
They're an investment firm based in Tampa whose holdings include the IMG Academy (sports academy for elite athletes in Bradenton, Florida). They also hold a stake in the Tampa Bay Rays, United Soccer League, Collegiate Athletic Solutions and Tampa Bay Rowdies. Will Weatherford is, coincidentally Chairman of the Board of Trustees at USF, leading to speculation that their involvement might be an angle to move USF into the Big 12.
This article originally appeared on Cincinnati Enquirer: UC Bearcats athletics opts out of Big 12 capital credit line offer
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Wednesday, May 6, the University of Cincinnati athletics became the latest Big 12 school to decline the loan.
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"We appreciate the Big 12's continued focus on innovation and identifying creative ways to generate new revenue opportunities for the conference and its member institutions," UC Director of Athletics John Cunningham said. "At this time, Cincinnati does not plan to utilize the investment credit option made available through the league's partnership with RedBird Capital."
What would be purpose of using capital credit line?
Schools could use the money to keep up with the ever-changing payrolls of revenue sharing as a result of the House vs. NCAA decision, which went into effect last July 1. The firms are interested due to the possibility of bigger media rights deals. The Big 12's current deal with ESPN and Fox, worth $2.28 billion, expires in 2031.
Big 12 schools that have passed on RedBird Capital, Weatherford Capital
Houston, BYU, UCF, West Virginia and Utah have already passed on the $30 million loan. Utah is unique as they have their own private equity partner, Otro Capital. The Utes unique deal is worth $500 million and has brought about Utah Brands and Entertainment LLC to manage revenue-generating sports.
UC makes it six schools that have passed on the capital credit line.
What does RedBird Capital own?
They're the majority owner of AC Milan (soccer) in Italy, a stakeholder in the Fenway Sports Group, which includes the Boston Red Sox, AC Liverpool and PGA golf, an investor in Skydance Media/Paramount Global, Artists Equity (involving Ben Affleck and Matt Damon) and SpringHill Company with LeBron James.
What does Weatherford Capital own?
They're an investment firm based in Tampa whose holdings include the IMG Academy (sports academy for elite athletes in Bradenton, Florida). They also hold a stake in the Tampa Bay Rays, United Soccer League, Collegiate Athletic Solutions and Tampa Bay Rowdies. Will Weatherford is, coincidentally Chairman of the Board of Trustees at USF, leading to speculation that their involvement might be an angle to move USF into the Big 12.
This article originally appeared on Cincinnati Enquirer: UC Bearcats athletics opts out of Big 12 capital credit line offer
Continue reading...
