FC/OT: Utah enters the arms race….
- Thread starter Midnighter
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I keep waiting for Google's founders to decide when they want Stanford's football team to be the best and give unlimited resources to Stanford to crush everyone. College sports is entering an arms race, and where this is headed no one has any idea.
In other headlines...today Mega PE Fund, owner of 60 college football programs, has replaced PSU's AD and football coach with AI powered computers. Back to your regularly scheduled programming.
As long as those new computers occasionally mention JoePa’s name I’m good with them.
College sports has been in an arms race since the 1970s. Nothing new in that respect.
Today, there are just more revenue sources for universities to tap.
There are a lot more billionaires that want their school to win, didn't have that in the 70s. Money is only going to get larger going into the pools for universities.
True. However, I see it as a good thing. Competition drives innovation and encourages all competitors to raise their game in order to survive. The benefits are just enormous.
It reminds of the days when Paterno took his teams to Tuscaloosa, Columbus, Lincoln, and South Bend to play the best of the best. It made Penn State a better program.
I thought this was in response to the anticipated Qatari Military Base in Idaho.
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Do you mean Army, Navy, Airforce, West Virginia, Boston College, Temple, Maryland, Rutgers, Mac team, Pitt, and NcState?
RIP college football my old friend“College” Football
No think he was saying psu had the hardest schedules because they went out and played the best. Nd bama Miami Pitt Nebraska west Va, bc.
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I legit do not understand the idea of getting private equity involved. Businesses involve private equity when they need an influx of money to expand or modify their product with the ultimate goal of expanding their market or increasing future revenue to make more money. Private equity likes that because they can thus get a share of future profits to pay off their investment. And also to have an ownership stake in a business entity.
But what will a college program do with such an investment? Why are you selling off a "share" of your product/brand for money if you are a college? You are literally given up your right to future money in the hopes that the private equity could...what exactly? I don't really understand the end game here, especially since if this becomes commonplace then you'll have a lot of colleges that a third party but will likely still have a similar "share" of the college sports pie as before the process. This will be great for the student-athletes who will be offered more NIL but I don't see the rationale for the schools.
But what will a college program do with such an investment? Why are you selling off a "share" of your product/brand for money if you are a college? You are literally given up your right to future money in the hopes that the private equity could...what exactly? I don't really understand the end game here, especially since if this becomes commonplace then you'll have a lot of colleges that a third party but will likely still have a similar "share" of the college sports pie as before the process. This will be great for the student-athletes who will be offered more NIL but I don't see the rationale for the schools.
Tax exempt status may get challenged at some point if this keeps up . Uncle Sam has an appetite for money too. Then you get into college donations and tax deductibility.
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NFL league offices were tax exempt, but the teams were not. League exemption was relenquished in 2015.
Does anyone see any details of what Otro (the "investment firm") gets? No?
Wonder why?
No one is "giving away money" here (or in other such ventures).
This ain't philanthropy.
BTW: The Otro guys are RedBird Capital guys with new business cards.
How could this not end well (for the universities)?
Wonder why?
No one is "giving away money" here (or in other such ventures).
This ain't philanthropy.
BTW: The Otro guys are RedBird Capital guys with new business cards.
How could this not end well (for the universities)?
Yes.
When I see PE is buying into a business, I always think about what their exit plan is. They have a plan and it may not be in the best interests of the seller.