Conference Realignment

[Andrew]

Sources: Big Ten mulling $2B private capital deal

The Big Ten is in talks about a private capital deal, which includes a 10-year grant of rights extension through 2046, that would infuse at least $2 billion into the league and its schools, sources told ESPN.

www.espn.com

Would love to better understand this. On some level it sounds similar to private equity groups buying the Dodgers, and Euro soccer clubs like Chelsea and Milan.

Bigger picture, this is all insane!

An investor (private equity firm) will front the conference approximately $2B for a share of future revenues. It gives the conference money now. I would like to understand it better as well.

 

[ADORAZ]

An investor (private equity firm) will front the conference approximately $2B for a share of future revenues. It gives the conference money now. I would like to understand it better as well.

Yeah, I don't fully understand it. Typically conferences end up regretting these long-term contracts (such as the ACC). The Braves signed a terrible super long-term TV deal that gave benefits upfront but hurt their payroll for a long time (signed before sports TV rights dramatically increased).

If you're a Northwestern then I get signing it, but not if you're an Ohio St.

 

[SJU85]

Yeah, I don't fully understand it. Typically conferences end up regretting these long-term contracts (such as the ACC). The Braves signed a terrible super long-term TV deal that gave benefits upfront but hurt their payroll for a long time (signed before sports TV rights dramatically increased).

If you're a Northwestern then I get signing it, but not if you're an Ohio St.

Which is why at this time neither Ohio State and Michigan (the flag ships of the conference) are on board with the this deal.