I haven’t the slightest idea how this would work.
U of Arizona $ Crunch: Talk about selling the Athletic Program to a private vendor
- Thread starter LionJim
- Start date
“People who are qualified to run an athletics department may turn it into a profit,” Rafelski said. “We could perhaps get a good sales price.”
This guy obviously doesn't have a very high opinion of the current AD.
This guy obviously doesn't have a very high opinion of the current AD.
They need Sandy to right the ship the way she did for us.
This may be a good thing in the long run. No way a private equity firm doles out 10-year $100 million extensions. It’s awful business.
Maybe this is what’s needed to reign in the stupidity common in college athletics.
Maybe this is what’s needed to reign in the stupidity common in college athletics.
Interesting concept. How exactly do you sell an athletic department, without turning the participatns into employees - once they are not connected to the University, don't they lose their "amateur status"?
Yes, I am fully aware of what that sounds like given NIL, and the general perception of D-1 student athletes anyway.
Yes, I am fully aware of what that sounds like given NIL, and the general perception of D-1 student athletes anyway.
You effectively sell future cash flows for a fixed fee. The negotiated fee reflects risk associated with the changing NIL and athlete comp landscape. The private equity firm assumes all the cost overhead, etc.
It’s an interesting concept not free of the wrinkles you mention. Also, the cost of maintaining that future revenue is high. I wonder how much $ the university actually pockets and in what timeframe. Ex: is it a small upfront payment with minor residuals based on future earnings?
On the surface, it feels like a university wanting to free itself from a huge cost millstone.
Conceptually it's fine, but does that take UofA out of the purview of the NCAA or even the conference U of A is in? Because the sthletes really are not "amateur" and part of the Unviersigyt anymore?
I would ike to point out the person who thought of this is a Physics professor and they tend to think that theoretically, everything is feasible.
It is doable and it is complicated. That's why the investment bankers and their lawyers get paid the big bucks.
Ordinarily I would say that something like this is improbable, but where there is money to be made anything is possible. Only thing I can say with reasonable certainty is that if a college athletic department were taken private, two sports would survive, maybe one or two more at some schools.
Ordinarily I would say that something like this is improbable, but where there is money to be made anything is possible. Only thing I can say with reasonable certainty is that if a college athletic department were taken private, two sports would survive, maybe one or two more at some schools.
Easier ways of getting rid of the millstone than taking an AD private, Since universities are incapable of adopting those measures, it's unlikely that they'll find any buyers as is.
You raise a good point. The surest way to maximize profit is to kill all sports but football and men’s basketball. That feels grossly misaligned with what a university would want.
Maybe there are contractual safeguards against that, but to your point, it starts moving in the direction of impossible.
Sure, a university could insist on contractual safeguards to maintain money-losing sports. And, of course, potential investors would reduce their bids commensurately. At the end, they schools solve nothing unless they're willing to undertake drastic structural changes of their athletic departments.
Richard Feynman’s doctoral advisor at Princeton was John Archibald Wheeler. Once Wheeler phoned Feynman and said that he had solved the mystery of why every electron has the same mass. “There’s only one!” It wasn’t readily apparent that this concept was, in fact, not feasible.
Anyway, I suspect we’ll be seeing increasing number (second derivative positive) of schools dipping their toes in the private sector pond.
We are headed for minor leagues in both revenue sports, run by companies affiliated with universities. If the athletes want a degree, they'll have access to online instruction and little other interaction with the university of their choose. That's where we are headed. Thanks NCAA, gamblers, myopic university presidents and media.
It's going to have all the same issues as any other business. Not just being taxable.
Probably depends on the charter, but would imagine there is some level of control.
Removing a college football or basketball team’s association with its school through privatization will effectively end my interest in college sports since I’m already heading in that direction.
I know what I think probably doesn’t matter to anyone, but if I feel this way I’m sure a ton of others do, as well.
I know what I think probably doesn’t matter to anyone, but if I feel this way I’m sure a ton of others do, as well.
Major point. Remove the brand identity associating the team with the school and the value of the franchise is significantly diminished. All but the half- baked PE guys recognize the value of the brand. For those that don't it generally doesn't end well, for them and the franchise.
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