re: Portal Extravaganza - Scooter Finley world tour continues edition

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What the equity piece is, I have no idea.

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Google tells me it’s for a part of future revenue.

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Investment Model: PE firms provide upfront cash in exchange for a percentage of revenue from media rights, sponsorships, ticketing, and licensing, rather than ownership. University of Utah's Pioneer Deal: Utah's historic $500 million deal with Otro Capital created Utah Brands & Entertainment to manage revenue-generating assets, setting a potential template for other schools. Financial Pressures: Athletic departments face rising costs (e.g., NIL payments, coaching salaries) and declining revenues, making private capital attractive. Operational Expertise: Firms offer business acumen, technology, and network access to boost commercial operations, branding, and fan engagement.

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If the amounts are at a point where the school can't just pay the players out of their current revenues and have to get the PE group to fund off of future revenues, then this is going to blow up in a bad way. It seems like a very bad idea.

Think about the SEC. You could say, ok, we know we will get a certain amount from TV deal over the next 4 years. We know what stadium revenue will be based on ticket prices and future pricing plans. We predict with PE funding the team will be good enough to reach anywhere from a good bowl game to playoff. But, in the case of the SEC, bowl-postseason revenues are carved up and shared. What if the SEC really sucks one year and the post-season revenues come up way short of projections?

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seems like a very bad idea.

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yes and no

The player would be bartering his NIL, into a system that’s declining because of NIL, so in essence they’d end up losing because of open ended unregulated greed.

Seems somewhat apropos.

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This sounds like some deal the chinese govt would make with a 3rd world country

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Belt road initiative

These PE firms will own the football programs in the future.

I don’t really understand the upside for Utah in the long term.

The only time private equity can help you is they provide funding to get you to a different level where you start bringing in so much revenue that even when you subtract out the amount that goes to the PE group, you’re still making more money than you were before.

I don’t really see how this move increases Utah’s revenue at all. You’re already a big time college football program included in all these TV deals. Outside of this turning you into a Notre Dame type program, you’re just siphoning money you would’ve gotten to the PE group.

Maybe I’m missing something.

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Auburn football presented to you by Pfizer

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Digoxin, Lisinopril, and AED

Backed by the American Heart Association

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Google tells me it’s for a part of future revenue.

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The PE firms are already involved in the broadcast rights. Back when I was in the sports marketing business, Forstman Little bought Learfield, then went bankrupt. Learfield has flipped a bunch of times. PE firms have bought and sold rights holders for years.

The PE model is criminal. 1%ers create a fund, startup “shell company” then that shell company goes out and buys companies (preferably with some brand equity and a customer base), funnels the money up the food chain through “management fees“ to the 1%ers. They strip the quality of service and products to the bone and then when the company doesn’t make it, they bankrupt the shell company to absolve themselves of any accountability. Middle management and workers lose their jobs, 1%ers keep the fees, set up another shell company, and rinse repeat. It’s a fricking scam.

Side note…People bitch about the rising cost of healthcare as if it’s a government problem as if the politicians can solve it, but rarely mention that the real trouble is with these vermin PE firms stripping access and quality of care from people, all to make the 1% richer.

Okay I feel better now

Rant on [off]

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Digoxin, Lisinopril, and AED

Backed by the American Heart Association and Narcan

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These are all YouTube shorts so they are super short videos. I can’t find the video of his that showed part or all of Sam Leavitts LSU deal, but it was this guy who talked about it.

Utah Private Equity

UNLV Private Equity

BigXII Private Equity

I can't wait. What could go wrong?