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University of Utah athletics is entering into a $500M+ equity partnership

8,175 Views | 82 Replies | Last: 4 mo ago by milner79
Bunk Moreland
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Heisenberg01 said:

I don't know the % equity given up for each deal, but the Big Ten is considering $2.4B for the entire conference vs Utah raising $500M just for themselves. The Big Ten would be crazy to give up any amount of control for that number. Now if they were offering $1B per school to the Big Ten that would be something they'd have to consider.


Michigan is making threats behind the scenes and now publicly as they are very much against the conference taking PE money. A current ( or former) regent was interviewed a week or 2 ago and said Michigan leaving B1G and going independent would be something they would consider before agreeing to it.
fc2112
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There has long been a thought that college sports will cleave in two - the corporate owned subsidiaries and those that remain educational based.

Not sure they can co-exist in the same league. The educational based schools will become like the Ivy League schools - still akin to Division 1, but apart from it.
Muy
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ElephantRider said:

WTF. CFB is so ****ed up


They went from nothing to an out of control train overnight. The NCAA leaders must have gotten some great hookers and blow.
3rd Coast
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The second they started paying players with essentially no rules...anyone could see it coming
Bag
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Bunk Moreland said:

Heisenberg01 said:

I don't know the % equity given up for each deal, but the Big Ten is considering $2.4B for the entire conference vs Utah raising $500M just for themselves. The Big Ten would be crazy to give up any amount of control for that number. Now if they were offering $1B per school to the Big Ten that would be something they'd have to consider.


Michigan is making threats behind the scenes and now publicly as they are very much against the conference taking PE money. A current ( or former) regent was interviewed a week or 2 ago and said Michigan leaving B1G and going independent would be something they would consider before agreeing to it.

they can ***** and moan, but this will happen, money rules the world, like it or not
Muy
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Texas 8&4 said:

The second they started paying players with essentially no rules...anyone could see it coming


Easy semi-fix. Eliminate the no strings attached Transfer Portal and go back to players having to sit out and lose a year if they transfer. Didn't they lose a year back in the day, lol
aggiehawg
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Quote:

Michigan is making threats behind the scenes and now publicly as they are very much against the conference taking PE money. A current ( or former) regent was interviewed a week or 2 ago and said Michigan leaving B1G and going independent would be something they would consider before agreeing to it.

Ditto for USC. USC had a similar experience with how Scott set up the PAC Network(s) being forced to sign over not only their TV rights but their brand rights, or a portion of them at least. So they have seen this movie before with disastrous results. And as a private university, those rights are big moneymaker for them. They will want to keep control now that they got them back after the PAC imploded.
Bag
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Muy said:

Texas 8&4 said:

The second they started paying players with essentially no rules...anyone could see it coming


Easy semi-fix. Eliminate the no strings attached Transfer Portal and go back to players having to sit out and lose a year if they transfer. Didn't they lose a year back in the day, lol

once that genie was let out of bottle it was never going back in, I think the transfer portal has actually been a net positive for the sport, warts and all
TheBonifaceOption
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Buzzkill said:

Phatbob said:

Bag said:

its old white men

Whatchu got against old white men?



You ever stop and look around? Plenty to hold against old white men.

And I am one!

Cuuck behavior.
3rd Coast
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I believe if you transferred from SEC -> SEC team you had to sit out (2) years. I could be wrong on that, but that is what I thought I heard
jrgypsum
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We getting Buc-ees, no?
erube
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Texas 8&4 said:

I believe if you transferred from SEC -> SEC team you had to sit out (2) years. I could be wrong on that, but that is what I thought I heard


Yet coaches can leave right before their team starts in the playoff! As the very pro-Labor (sarcasm) Brett Kavanaugh said, "The NCAA labor model would be flatly illegal in almost every other industry"
3rd Coast
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I keep saying it, but collective bargaining is on the way...probably sooner than later
AgDotCom
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AGinHI said:

So, more so than ever, I will be cheering for professional mercenaries, coaches and players alike, who wear my team's color one day and my opponents the next.

Might as well toss out all the Aggie cheers and traditions, all of college footballs for that matter, because we won't be rooting for Aggies, or Ducks, or whomever, but freelancers with no ties, or even interest, in our institution or culture other than who is the highest bidder.

That already happened 3 years ago, just like many of us predicted and then listened to the "but you're still here" pejoratives from other Ags.

Yeah, we ARE still here. Watching it burn like just like we said it would.

Jugstore Cowboy
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Bag said:

W said:

so the school makes more money

the players make more money

and the private equity investors make more money?

and that money comes from???

Yeah, how is there going to be enough for investors to make money - in Utah - when most schools barely break even on athletics?
AgsGiveUsRoom
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Tceh's success due to Cody Campbell's oil money has the Utes taking desperate measures to stay competitive.
aggiehawg
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AgsGiveUsRoom said:

Tceh's success due to Cody Campbell's oil money has the Utes taking desperate measures to stay competitive.

Measures they will come to regret.
Queso1
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I wish we would have won a modern football era NC prior to NIL. Any championship now is tarnished.
Buzzkill
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Queso1 said:

I wish we would have won a modern football era NC prior to NIL. Any championship now is tarnished.



You live in a fantasy land if don't think A&M had a payroll before NIL.
ChrisTAMU
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Pathetic
Buzzkill
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TheBonifaceOption said:

Buzzkill said:

Phatbob said:

Bag said:

its old white men

Whatchu got against old white men?



You ever stop and look around? Plenty to hold against old white men.

And I am one!

Cuuck behavior.


I looove Internet tough guys, they're such puss ys in real life

Queso1
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Buzzkill said:

Queso1 said:

I wish we would have won a modern football era NC prior to NIL. Any championship now is tarnished.



You live in a fantasy land if don't think A&M had a payroll before NIL.


I'm sure. But I'm also sure MLB players were juicing before McGuirre, Bonds and Sosa. Yet they're the ones that have an asterisk next to their records.
sharpdressedman
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Securing very large source(s) of capital is now necessary to annually rent the elite players who will enable schools to compete for championships. The players are, largely, mercenaries who are available, thanks to unrestricted free agency, to play for every year for the highest bidder.

Not surprisingly, it is easy to imagine that the most successful schools will consistently be among the most generously funded by multiple sources, because they will have the best players.

Moreover, how long before individual boosters without access to vast fortunes become weary of writing annual checks to meet recruits/transfers financial demands? It will be simpler to "let the PE guys or corporate sponsors do it."

College football was a great institution until it wasn't.
Bag
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sharpdressedman said:

Securing very large source(s) of capital is now necessary to annually rent the elite players who will enable schools to compete for championships. The players are, largely, mercenaries who are available, thanks to unrestricted free agency, to play for every year for the highest bidder.

Not surprisingly, it is easy to imagine that the most successful schools will consistently be among the most generously funded by multiple sources, because they will have the best players.

Moreover, how long before individual boosters without access to vast fortunes become weary of writing annual checks to meet recruits/transfers financial demands? It will be simpler to "let the PE guys or corporate sponsors do it."

College football was a great institution until it wasn't.

its a good point.

Think of the hundreds of millions of dollars that were literally flushed down the drain by teams that didnt make it in, I'm looking at you Texas, LSU, ND, Florida, Tennessee on and on and on

donor fatigue will be a real thing in very short order, securing $50m / year line of credit that is sustainable is going to be paramount, thus PE and Corporations enter stage left
Jeeper79
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Tramp96 said:

jt16 said:

Tramp96 said:

I don't think this is where everyone is headed.

I think you have enough institutions who are smart enough to realize this is a deal with the devil and will not go down this route.

This will not end well for Utah, in my opinion. It's a payday loan, but the loan shark will get to move in with you and tell you how to live your life in order to make your interest payments to him.

The second they start pursuing profit over winning, the fans are going to really hate this deal.


Absolutely.

PE doesn't care about anything but profit. Jerry Jones has made the Dallas Cowboys extremely profitable, but they haven't won a damn thing in 30 years.
But hey. At least tickets, concessions and merch will all be more expensive! Wait, what?
Jeeper79
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Bob Knights Liver said:

Tramp96 said:

I think you have enough institutions who are smart enough to realize this is a deal with the devil and will not go down this route.

In today's world of no patience or foresight, I'd be shocked if most don't adopt this. Fans will cry for doing what wins ballgames instead of doing what's right.for the University long term. But hey, we'll have a 128 team playoff so no one gets left out.
I think most fans are against this. School administrations with dollar signs in their eyes are going to love it, though.
QB1
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I like it, when is the next fund offering? I want in....
agracer
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AGinHI said:

So, more so than ever, I will be cheering for professional mercenaries, coaches and players alike, who wear my team's color one day and my opponents the next.

Might as well toss out all the Aggie cheers and traditions, all of college footballs for that matter, because we won't be rooting for Aggies, or Ducks, or whomever, but freelancers with no ties, or even interest, in our institution or culture other than who is the highest bidder.

Sell swords!
Aston04
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If A&M ever sells the athletic programs to private equity, that would be the last straw for me. I would be out.
Ag1188
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AccAg said:

If you want to hate yourself, by all means. But don't expect others to accept your bigotry.
hello, perennial victim snowflake whiner.
npc
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fc2112 said:

There has long been a thought that college sports will cleave in two - the corporate owned subsidiaries and those that remain educational based.

Not sure they can co-exist in the same league. The educational based schools will become like the Ivy League schools - still akin to Division 1, but apart from it.
They absolutely can't coexist on the field. The market might still exist for both, but essentially the educational leagues will just be a bunch of kids waiting to get the call up to the money league.
UTExan
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As an Utah alum, this is good. We need some ultra fast wide receivers and some defensive line depth. That "U" and drumhead/feather image will soon be replaced by a $ sign and Emirates Air logo.
“If you’re going to have crime it should at least be organized crime”
-Havelock Vetinari
Bag
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you could make an argument that if we had a congress that was somewhat functional they could come in and set the guardrails, but we all know that aint going to happen

there is no one today that can accurately tell you what this sport will look like in 10 years
touchdown96
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Lawsuits will clarify what can and can't happen with PE at some point. Since Utah is a private state university, I wonder how they will avoid disclosing their contract publically and if they will face lawsuits about how a public university can sell ownership stake in their athletic programs.

I think Private Universities may jump on the PE train sooner. For example, what if Vanderbilt creates a private entity that owns all of the athletic programs or just football. This entity would work out a private agreement with PE that allows the firm to negotiate on Vandy's behalf for sponsorship, conference, tv, merchandise, etc. That PE firm may be given a contract that pays out based on percentage of revenue or ownership.

I don't know if this is possible for public universities. If there are any attorneys who are familiar with any of these topics, I'm curious about their thoughts on this.
Jugstore Cowboy
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Bag said:

you could make an argument that if we had a congress that was somewhat functional they could come in and set the guardrails, but we all know that aint going to happen

there is no one today that can accurately tell you what this sport will look like in 10 years

Members of both parties have been looking at and talking about legislation for at least 2 years. However, there's nothing close to a national consensus that they should even get involved right now, let alone what they should do.
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