Big 12 Selling Name to Sponsors? | Private Equity in College Football

In this college football livestream, Couz is joined by Josh Neighbors to discuss the news about the Big 12 Conference potentially selling the naming rights to the conference. They will also talk about the news that Brett Yormark and the Big 12 have talked to a private equity firm about investing into the league. They will talk about the pros and cons of these moves and give their opinions on the idea. #collegefootball #big12football #big12

[@Pluto2363]

Regardless of how this turns out or not, got to love Yormark and how he is constantly looking for ways to move the B12 forward.

[@eers2you]

I agree with this consideration and the ads on stadiums to grow. The ship has sailed. We HAVE to do something to save our programs.

[@CouzsCornerSports]

💯

[@kennyevans1320]

As long as it helps the teams...I'm all for it....gotta do what ya gotta do

[@CouzsCornerSports]

Yes sir

[@Ibleedgoldandblue]

Money is Growth for the new landscape of college football.

[@eers2you]

Great show!

[@CouzsCornerSports]

Thanks Jill

[@xmositoxc147]

CVC did a joint venture with another company that wanted to buy the company i work for 6 years ago. This past year the parent company was able to buy out CVC because the joint venture was a success and the company had grown significantly. We were initially scard because of the Private Equity, but evething went well for the employees. The Big12 had to do this. Better to try and fail than to fall flat. The SEC and B10 likely dont need Public Equity since they dont need the funds as ther are at the top of the hill. Nevertheless anything the Big12 does to decrease the revenue gap that will be 50M in 5 years, is only good. Now you have to win.. cant go 1 and out in the CFP.

[@michaelbee2165]

SEC Fan here Couz, not the Big 12. But I'm a college football fan too. I do NOT want to see the Big 12 go away. The ACC neither. The idea of the SEC and Big 10 breaking off into a "superleague" is NOT something that appeals to me. Neither does dropping the other athletic programs! That's been one of my major fears through all these CFB changes! Anyway, I like to keep up with what's going on in the Big 12, but REALLY enjoy your show!

[@CouzsCornerSports]

I appreciate the support.

[@hbarfarkle]

If Allstate wants to give us a pile of money to call the us the Allstate Conference, bring it on.

what to you and paul you all made a good team

[@williewilson972]

So let me get this straight. If the Big XII changes it's name to the All State Conference. Does that mean we will call the new Conference the ASC?

[@tomdean9381]

The deal that I could see is if the PE firm gave the Big 12 conference X dollars for each of the years remaining in THIS contract and in exchange the PE firm would get Y percent for each year in the NEXT contract (but nothing after that). That would incentivize them to help the conference grow but would not burden the conference with an infinite payout stream.

[@CouzsCornerSports]

I like that thinking.

[@tomdean9381]

@@CouzsCornerSports Good! Now call your buddy Yormark and tell him "Hey, Tom says let's do this!" 🤓

[@kimcoulter806]

ROI is generated by the way within a PE Firms staring of assets and value with the other holdings within their respective portfolios. Yeah… I lived in that world for 30+ years. It’s not the Devil Incarnate as it’s being portrayed by some. Thx Couz

[@CouzsCornerSports]

No problem Kim. I appreciate the comment.

[@manipulatedworld5355]

As someone who own a financial services corp. the Big 12 has the most value for any private equity firm of all the POWER 4 conference because the ACC is in uncertainty the Big10 and SEC has possibly maximized their TV contracts with the possibility of not as much of a jump in their next media rights deal if the Big 12 shows theirselves competetive in football and basketball their value will possibly take the biggest jump percentage wise the next media deal and that is where they get their return on investment

[@CouzsCornerSports]

Awesome

[@INFAMOUSfrontRunn3r]

This is exactly what ive been told. The XII has potential for double or even triple growth in value over the next few years. The reason being their current low valuation which allows for more opportunity for growth and profit.

[@stephenfromm223]

The big 10 will definitely double in the next TV media right deal, they added the entire LA media market and the entire pacific northwest market.

[@INFAMOUSfrontRunn3r]

@@stephenfromm223 then why didnt CVC approach them first. Thats $150 m you are claiming the Bigten will make next contract.

[@encycl07pedia-]

I can't wait for the new P4 conferences: McDonald's Conference (SEC) Nike Conference (B1G) Pizza Hut Conference (ACC) Walmart Conference (B12)

[@CouzsCornerSports]

Lol

[@johnteill_]

Brett "the hit man" Yormark still has George Kliavkoff's soul in the sharpshooter 😅

[@encycl07pedia-]

WTF are you talking about? A sharpshooter is a person.

[@hbarfarkle]

I'm sure companies like Allstate have thoroughly evaluated the return on investment long before talking to Bret. I wouldn't worry about what their return on investment will be.

[@chrislieberman]

Bret needs to follow the XFL rules and broadcast.

[@michaeltamez3563]

Like I said on another show, The Coke a Cola 20 pack or Budlight 30 pack conference. LOL😅😅

[@encycl07pedia-]

Coca-Cola. How do you not know that? It's on every can and advertisement.

[@CouzsCornerSports]

Lol

[@tomdean9381]

For the Big 12 to keep up with SEC or Big Ten, the Big 12 teams would need about $40 Million more per team per year, which is about $640 Million for the conference as a whole per year. And how many years of that cash inflow would be needed in order to raise our value up to (or near) the Big Ten or SEC. If we are borrowing that money? The interest payments would bleed us into a G5 conference if the value of the conference doesn't grow. If we're selling 20% of the equity of the conference, then they get 20% of our revenue forever. And the schools would get 80% of the revenue. If we do grow in value by more than 20%, okay. If we don't grow by 20%, then we would have to live on less.

[@tomdean9381]

I'm not 100% clear on this PE deal ... The only thing I know about Private Equity, is that the PE firm gives some company money in exchange for part ownership in the company. Then the PE firm gets money back by either (a) Getting part of the * Profit * via dividends (Note: Not a part of the * Revenue * but a part of the * Profit * that is being distributed) or (b) Selling their part of the ownership in the company (to the other part owners or to some 3rd party). But college athletic conferences don't make a Profit, it's money in and then money out to the schools ... therefore a dividend is not applicable here. The PE firm could sell their part ownership of the conference, but other than that how would they get any money back ??? I sure hope we're not taking X dollars now and then paying out Y% of the * Revenue * to the PE firm each year forever and ever and ever !?!? The sum of those payments would eventually be FAR larger than the money we got at the start (even if you look at Present value of the money).

[@CouzsCornerSports]

That’s fair. However, the PE firm will help the league increase revenue in other ways as well over time. This helps both parties make more money. Yes it’s a risk, but the Big 12 needs to do something different or get left behind.

[@michaeltamez3563]

I'm a Big12 fan, but you have to laugh at this stuff from time to time.

[@williewilson972]

I wonder how much Big XII Stock would go for a share?

[@garystewart-is6iz]

Marshall is a great school my wife and middle son got degrees from there

[@CouzsCornerSports]

Awesome.

[@fwilliamcony28]

Agree! Tons of respect for The Herd from a WVU alum.

[@tutnod2449]

"The leech has two daughters: Give and Give!" Proverbs 30:15

[@michaeltamez3563]

Even the Eggland Dozen Conference. 😂😂😂

[@CouzsCornerSports]

😂😂

[@tomdean9381]

How about the: Big Ford Division 😅

[@CouzsCornerSports]

😂😂

[@toddwebb7521]

Hopefully loves or pilot or something will sponsor Utah so they can be the butt of truck stop conference jokes

[@CouzsCornerSports]

Lol

[@terryfox9344]

I have yet to hear how this company is going to help the Big XII. I hear they want each team to sell them a piece of the Big XII (roughly 1.25% per school), but how much are they paying for their 20% share of the pie? So each school gets a one time payment, in exchange for a LOWER yearly distribution? How does that help the schools? Are the Big XII schools so cash strapped and destitute that they would sell their interest in the Big XII? Yormark is totally irrelevant. It is the schools that are selling their shares of the conference. Reliance on Yormark's judgement is the height of foolishness. I have no problem with "private equity". I do have a problem with selling my ranch for a pocket full of beans.

[@CouzsCornerSports]

The company invests $800 million - $1 billion into the conference and helps it increase in value. How they do that is beyond my pay grade.

[@shallojalloh]

Mortgaging the future is CRAZY. But go right ahead.. this will end up being FOOLISH

[@INFAMOUSfrontRunn3r]

So many pro teams in america are involved with PE...why is it a bad thing for the XII to do what others around the world are doing?

[@shallojalloh]

@frontRunn3r587 | pro teams and public universities are not even remotely the same. Nfl teams get ran into the ground all the time.. then get bailed out by another billionaire. Universities can't get bailed out by Billionaires. They are public. Try again my guy

[@wetblanket1977]

Im Not an expert and I bet there aren't many on this subject that are that actually keep up with college football

[@CouzsCornerSports]

Well said

[@thywillbedone1965]

Saw this in another video chat and I love it. If Allstate buys the naming rights to the Big 12 they should call it the “Mayhem Conference” by Allstate.

[@CouzsCornerSports]

I do like that.

[@tomdean9381]

Selling the naming rights of the league? If we do that, drop the "12" part at the same time.

[@CouzsCornerSports]

That’s what I think too.

[@kimcoulter806]

Anyone here shop at Costco, Home Depot, Amazon or EBay for example? All created with funding by Private Equity. But here’s the only fact and question that’s relevant: not 1 B12 Athletic Department is technically profitable and that’s an uncomfortable fact. Hence the only relevant question is: which sports will WVU eliminate? You’re about to be required to allocate a minimum of $22m annually to the players so again, based upon that absolute fact/reality, which sports do you want to eliminate? Facts and reality must be taken into account.

[@CouzsCornerSports]

Will that likely be required even with the private equity money?

[@kimcoulter806]

@@CouzsCornerSports here’s how I see the math: if they distribute expected ROI, typically that’s 15%+ annually as a fund goal. On $1b… that’s damn near $10m a school. That’s real money! If however they amortize distributions based on a shorter ROI period, then the distribution is much greater. But there’s significant trade off for that last option. Not the least of which are covenants regarding ownership parameters in the event of default etc. Hope this helps provide an idea about potential. The numbers don’t seem real to the average person but this a different world than 99.9% of people are ever exposed to. Gonna be interesting one way or another and I for one am damn sure for it cuz we need it!! WreckEm

[@CouzsCornerSports]

@@kimcoulter806 thanks for the info. It appears some of the school Presidents aren’t sold on it just yet, but I imagine they will be eventually.

[@kimcoulter806]

@@CouzsCornerSports I don’t see us having a choice. It’s either that or we lose players and coaches to the 2 stinkin behemoths. Sucks

[@knumbskullnews3460]

Couz in the big time with big time guest.

[@mistermexelplitskin647]

Whose the Big-time guest ? Another midcard Podcaster just like your Midcard Little 12 league ?

[@markstarcher3043]

I have been screaming about private equity too u for months now couz fod the big 12 bro......

[@CouzsCornerSports]

I know.

[@hbarfarkle]

I disagree with most of Josh's take on this subject. I think the Big12 will thoroughly evaluate with whom they are getting into bed.

[@melvindarkese459]

Do nothing, and the Big 12 will starve. Do something, and the Big 12 can by more groceries.

[@CouzsCornerSports]

Nice analogy

[@simon2077]

Move on from the Big 12, ADD 4, then call it the Phillips 66 TWENTY

[@CouzsCornerSports]

Not bad

[@eers2you]

Draft Kings.....hmm....gambling will never die.

[@CouzsCornerSports]

True

[@mistermexelplitskin647]

This reaks of desperation and sell out mentality from the Midcard Parity League soon to be Bud Light 12 Pack League with Dylan Mulvaney TransSpokesPerson. Try not to spazz out and censor my comment this time. Learn to take criticism KZbinrs

[@CouzsCornerSports]

You do realize it’s KZbin that censors the comments, right? You’ve been doing this longer than me. You should know that. Don’t comment something that they will censor and you won’t need to worry about it.