Big 12 News

Report: Big 12 Considering $1B Private Equity Investment

Syndication: Lubbock Avalanche-Journal

According to a report from CBS Sports’ Dennis Dodd, the Big 12 is considering making history in becoming the first conference to explore private equity investment to help further ensure the league’s long-term financial security.

In his groundbreaking report, Dodd says that a “possible cash infusion of $800 million to $1 billion” is on the table, coming from a Luxembourg-based firm called CVC Capital Partners. In exchange for this cash infusion, the firm would own a 15% to 20% stake in the league.

According to its website, CVC is one of the world’s superpower private equity giants, managing more than $200 billion in investments worldwide.

 

So, the question on everyone’s mind now is: What’s the likelihood of this actually happening?

One source told CBS Sports that the talks are “pretty serious,” but several of the league’s presidents needed to be convinced on the major business venture.

As it stands, Big 12 teams are currently set to earn $31.7 million each with a new media rights deal with ESPN/FOX that ends in 2031.

According to CBS Sports, though, if the league were to jump into bed with CVC, the resulting revenue would be in the ballpark of what the Big Ten schools are set to make under their new media rights deal. That number—which leads all conferences—is approximately $75 million annually.

 

The talks, while “pretty serious,” are still in their infancy, and a timeline for a potential deal is still uncertain. What is certain, though, is that Brett Yormark is all about driving up the Big 12’s value, and in the world of athletics—where everything seems to revolve around the almighty dollar—he’s one heck of a leader to fall under.

“He’s throwing punches,” a Big 12 source told CBS Sports. “The dude is bold. He’s all about it. He’s bullish.”

There is still much to learn about this potential deal to be learned, but with Yormark spearheading the effort for the Big 12, there’s no doubt that making history is certainly on the table.

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