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Utah for-profit equity deal: the endgame for CFP

Last little money grab before sports in general are blown up. 20 to 30 years from now players will be talking about the crazy contacts players used to get. The younger generations don't give a crap about sitting around watching whatever sport for hours on end. The gravy train won't be dead, but it'll be a shadow of itself. There's not much more money to be extracted from most.
 
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Empirical Cane said:
Walk me through this...

How does owning a college franchise have upside for a billionaire w/o divorcing themselves totally from said college?

I can see the severing part and keeping the name only I guess (at that point we have XFL 3.0 amd He Hate Me Jr.). But remaining apart of the academic institution only ends with pitch forks and torches in tbe streets.

And we haven't even touched on public vs private institutions.
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It's easy man, as I have already said, look at OpenAI. That thing is a non-profit, which owns a for profit subsidiary that is one of the largest private companies in the world with over $60 billion in outside equity funding. Everyone who participated early is filthy rich. This is a solved problem.

Skitz305 said:
The problem is if a guy like Bezos gets involved with some other partners, it’s going to be profit driven. Bezos has no affiliation or loyalty to the program. I would rather not have PE or outside money involved, however, if you’re going to go that route you may as give an opportunity to the Mas brothers first, who have deep ties to the community and to the program. Plus to an earlier point mentioned, not for profit is a tax classification governed by the IRS, NCAA has no bearing on this status.
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I would take a stab at Bezos just because he has more money than he knows what to do with, and being an innovator in any area is attractive to him. He also has had previous interest in buying a sports team. Mas brothers absolutely should have the opportunity to put in money though. Outside money is going to happen, but it's not all equal. Guys like that are vastly preferable to PE.

IRS has no power here.
 
What did people actually think was gonna happen when you started paying College players??? I'm not surprised by any of this and expect a whole lot more down the line.... Pandora's box has been forever opened and will never close.....
 
BigDikDaddyFromCincinnati said:
At what point does the cost of being a fan cause a downtrend in viewership? Eyeballs are essentially what drives the currency, no?

Not disputing the OP point. PE firms aren’t doing this to not make an ROI. Who will pay? The fans.
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People don't understand that private equity companies and asset management companies are the absolute scum of the earth.

They don't care about anything except Benjamins. Milk the cow till it doesn't give any milk anymore and once it doesn't, it's thrown away to make room for the next cow.

FWIW, they also don't care about creating better products or anything like that. So, expect prices to rise till the consumer is tired of investing and the bubble collapses in an instant. Soccer fans in Europe are already experiencing this and the prices keep increasing for less value delivered.
 
Can UM become an equity partner with Saudi Arabia?

Signed,

Peruche

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SayWhat said:
Last little money grab before sports in general are blown up. 20 to 30 years from now players will be talking about the crazy contacts players used to get. The younger generations don't give a crap about sitting around watching whatever sport for hours on end. The gravy train won't be dead, but it'll be a shadow of itself. There's not much more money to be extracted from most.
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It’s getting to the point where average people are already being priced out. Stadiums downsizing sections of cheap seats to add a couple rows of premium seating because they know only the ultra wealthy are going to be able to afford games eventually. Football stadiums are going to have ten seats for billionaires and everyone else can watch at home if they can afford the football broadcast package.

That’s overdramatic but sports are really going to have to get away from the idea that profits are going to infinitely grow.
 
Bender said:
People don't understand that private equity companies and asset management companies are the absolute scum of the earth.

They don't care about anything except Benjamins. Milk the cow till it doesn't give any milk anymore and once it doesn't, it's thrown away to make room for the next cow.

FWIW, they also don't care about creating better products or anything like that. So, expect prices to rise till the consumer is tired of investing and the bubble collapses in an instant. Soccer fans in Europe are already experiencing this and the prices keep increasing for less value delivered.
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Selfishly, I don’t like it because going to live games with my kids is an awesome experience that I don’t think should cost $1000+ and that’s where I think it’s heading.
 
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PE has a role to play when something's truly dead/dying and you just have to salvage what's left. On the flip side l, it can take a stake in a highly successul operation to turn a profit.

PE is bad for college football. I'm struggling to see the positives at all. It's just meddling. The cash injection willcbe temporary. PE has to sell at some point. This isn't a 20 year "buy and hold."
 
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