Report: Big 12 nearing private capital deal to infuse millions of dollars to conference members

The Big 12 is nearing a private capital deal that would infuse millions of dollars to conference members, Yahoo! Sports’ Ross Dellenger reported. The deal would not require the league to give up any stake or equity.

RedBird and Weatherford Capital are in talks with the Big 12 about an agreement, which would bring upward of $500 million to conference membership. It would also create a strategic partnership with the firms.

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In a statement to Yahoo! Sports, the Big 12 confirmed the talks with both RedBird and Weatherford Capital. Schools would be able to opt-in to accept upward of $30 million in capital, according to Dellenger, but would not be required to do so.

“The Big 12 Conference is in negotiations to create a multifaceted strategic business partnership with RedBird and Weatherford Capital that will focus on growing the commercial operations of the Big 12, while also providing an opt-in capital solution for our member institutions to take advantage of up to $500 million in capital,” the conference said.

“RedBird will also work with the Conference to identify complementary investment opportunities inside and outside of the collegiate athletics ecosystem that will create new revenue streams and long-term asset appreciation. To date, the RedBird ecosystem has delivered over $145 million in contracted revenue to the Big 12 and its member institutions. This partnership would provide the Conference with a world-class strategic and capital partner, while preserving 100% of the member institutions’ equity in the Big 12.”

News of the potential deal comes after Big 12 commissioner Brett Yormark said the company did not plan on selling an equity stake in the league. However, he voiced support for the idea of a “strategic partnership,” which is what the deal with RedBird and Weatherford Capital would entail.

“We are not in the private equity business,” Yormark said at the SBJ Intercollegiate Athletics Forum. “We believe that the trajectory of our conference is terrific. We’ve got a lot of growth. We don’t want to share that. Having said that, strategic alliances, whatever they look like, that help us create value for our member institutions is something I sign up for.

“PE as we all think about is something that is not in the cards, but a strategic partnership that helps to create value, that helps to drive our business forward is certainly something that we will continue to explore.”

More in private capital in college sports

The idea of private capital has been around college sports for some time, and a Big 12 institution is nearing an equity partnership. Utah announced a deal with Otro Capital this week, which would infuse up to nine figures in cash and create a for-profit entity, Utah Brands and Entertainment. Dellenger reported the Big 12’s deal would not impact Utah’s partnership with Otro Capital.

The Big Ten has also explored the idea of private capital. The league has held discussions about a potential private capital deal, though multiple schools pushed back. Michigan and USC remain vocal in their opposition to the proposal, which would infuse upward of $2.4 billion to the conference and extend the Big Ten’s grant of rights through 2046. In November, Dellenger had more details on the proposed agreement and where things stood.

The Big Ten’s proposed deal would create a new commercial entity, Big Ten Enterprises, which would support the conference while also extending the grant of rights through 2046. Most importantly, it would give the firm – UC Investments – a 10% equity stake in Big Ten Enterprises to infuse roughly $2.4 million, distributed among member schools.