LAS VEGAS — The Big 12 Conference’s days as the Big 12 Conference appear to be numbered. Three years ago that would have meant a break up.
Now, it just means a potential name change.
Commissioner Brett Yormark announced on Tuesday at Big 12 Football Media Day that discussions about a naming rights agreement for the league are getting closer to reality, which would be a first for a college athletics conference.
Those discussions were reported last month, along with reports of a potential private equity investment in the conference that is separate from the naming rights deal.
Yormark has said that in order for the conference to remain competitive financially with the Big Ten and the SEC, every avenue to drive revenue must be explored.
The most persistent reporting revolved around insurance giant Allstate, which already has a significant presence in college football sponsorship. The naming rights deal, relative to other revenue streams, would likely be smaller potatoes — it’s reported to be in the $30-50 million per year range — but it’s another stream of revenue.
It would be similar to naming rights deals for stadiums and practice facilities. In this case, it would likely necessitate some sort of league name change.
Yormark didn’t provide a timetable for an agreement.
He echoed the same for the league’s potential deal with a private equity firm, which was also reported last month. That deal carries far more significance and weight for the Big 12 — and it also carries more risk.
Luxembourg-based firm called CVC Capital Partners has reportedly talked with the Big 12 about a capital investment that could be up to $1 billion and would come with a stake in the conference, perhaps as much as 20% ownership.
Initial reporting indicated that the sentiment among Big 12 presidents and athletic directors was divided.
“I do believe that, given where we are the industry, having a capital resource as a partner makes a ton of sense,” Yormark said. “That’s really how you conduct a business. I really believe that, and if you see where private equity is is kind of making a path into professional sports at some point in time it’s going to come here, into collegiate athletics.”
That investment, theoretically, would be passed along to member schools as another revenue stream that could be used, for example, to fund revenue-sharing payments to student-athletes, which could begin as early as next fall.
Private equity is new to the college athletics landscape. The only school with a private equity agreement is Florida State.
But, there are examples of private equity in professional sports both in the U.S. and abroad. Per Sportico, the first reported private equity investment in a sports team was in famed soccer team Paris Saint-Germain in 2006.
Now, more than a dozen NBA, NHL, MLB and MLS franchises have private equity among its ownership groups, along with top European soccer leagues and Formula One.
You can find Matthew Postins on Twitter @PostinsPostcard.
