Reports: Brett Yormark, Big 12 exploring selling conference naming rights to title sponsor
The Big 12 continues to explore its options to generate more revenue, from the potential of selling a chunk of the league to private equity to now potential naming rights for the conference.
According to a report from ESPN’s Pete Thamel, the league is exploring selling its naming rights to a title sponsor.
The deal could produce potential revenue in the “hundreds of millions over the course of the deal” and would be one of the largest commercial deals in collegiate athletics history.
The news is just the latest as conferences explore new ways to generate revenue against an ever-changing backdrop of college athletics. A recent House vs. NCAA settlement that will force programs to reallocate a significant chunk of funds has been an impetus for change.
The Big 12 has been as aggressive as any conference in brainstorming ways to cut down on the growing revenue gap between the league and more established cohorts like the Big Ten and the SEC.
Earlier Thursday, news emerged that the league was considering a private equity investment of up to $1 billion for a healthy percentage stake in the conference.
Big 12 eyes private equity investment
CBS Sports reports that the Big 12 is considering a private equity investment with a cash infusion of $800 million to $1 billion from Luxembourg-based CVC Capital Partners in exchange for a 15-20% stake in the league.
That cash infusion would go in part directly to conference members to help with ballooning costs, while the partnership would also give the league access to CVC investment services and clients.
How close any sort of deal is to fruition remains to be seen.
CBS Sports notes that while the talks are “pretty serious,” many of the Big 12’s presidents “need further convincing.”
One of the reasons the Big 12 might entertain the idea of a private equity stake in the conference is the growing gap between the Big 12 and the Big Ten and SEC when it comes to TV revenue distribution.
While the Big Ten is set to haul in roughly $75 million per school as part of its new media rights deal with FOX, CBS and NBC, Big 12 teams are currently receiving about $32 million per year for their agreement with FOX and ESPN.
The Big 12’s current media deal is set to end in 2031.