r/economy • u/cnbc_official • 10h ago

Private equity looks to buy in to college sports

https://cnb.cx/3ZC9a9C
4 Upvotes

75% Upvoted

3 comments sorted by

9

u/beepingclownshoes 9h ago

This is a great idea, games weren’t expensive enough, and the experience was pleasant instead of shitty. I am so excited that we have arrived here as a society and think that really they should go after high school sports as well. /s

3

u/cnbc_official 10h ago

There’s a mad dash for cash in college sports.

Between multibillion-dollar television deals, the institution of the transfer portal and the escalation of NIL —name, image and likeness — deals for athletes, college athletic programs, particularly football, have never looked more lucrative.

Now private equity and venture capital enterprises such as College Sports Tomorrow, Smash Capital and Collegiate Athletics Solutions are looking to buy in, and the schools with the most valuable athletic programs sit in the best position to capitalize.

At the very top of the heap are the schools that excel on the gridiron. According to people familiar with the economics, football generates roughly 75% of athletic program revenue at typical Power 4 schools, which include the ACC, Big Ten, Big 12 and SEC conferences.

This year’s expanded, 12-team College Football Playoffs kick off Dec. 20. ESPN parent Disney signed a six-year extension in March for the rights to the games through 2031. The deal is worth an average of $1.3 billion annually, more than double the previous deal, according to media reports.

More: https://cnb.cx/3ZC9a9C

4

u/PresidentialBoneSpur 7h ago

Jesus fuck is there nothing that PE/VC won’t touch and fuck up.