Brett Yormark: Big 12 opted not to pursue private equity sale, conference naming rights 'on pause'

After considering selling an ownership stake through private equity, the Big 12 opted not to do so, commissioner Brett Yormark told Front Office Sports’ David Rumsey. Yormark said the league board is “not ready right now.”

Yormark said the Big 12 did its legwork on the idea of selling to private equity. The idea came about last summer when CBS Sports reported a potential cash infusion of $800 million to $1 billion could come through Luxembourg-based CVC Capital Partners in exchange for a 15-20% stake in the conference.

Yormark later addressed the idea of private equity at Big 12 Media Days in Las Vegas, saying a capital partner could “make a ton of sense” in the current landscape. However, speaking with FOS Thursday after the Big 12 spring meetings, he said the league is no longer pursuing the move.

“The board’s not ready right now,” Yormark said. “And there’s probably lots of reasons for that. There are so many different things going on right now. But I think we’re well informed. We know what’s going on in that world. We hired a bank to consult and give us direction – show us what the optionality is out there. And we’re just not ready to jump in just yet.”

The idea of private equity and a potential sale of Big 12 naming rights came as the House v. NCAA settlement process got underway. Under the agreement – which is still waiting full approval – schools will be able to share up to $20.5 million directly with athletes through revenue-sharing. As a result, they started looking for more ways to generate revenue.

One of the Big 12’s ideas included exploring a sale of its naming rights. The league reportedly discussed a deal with Allstate worth $30-50 million that would change the conference’s name to idea such as the “Allstate Conference,” “Allstate 12 Conference” or “Allstate 12.”

Like private equity, the idea of naming rights is also not being discussed at this time. Yormark said it’s not exactly “off the table,” per se, but talks are rather “on pause.”

“I don’t know if it’s on the table or off the table, because we’ve created a lot of equity behind ‘Big 12,'” Yormark said. “We have put a lot behind it. I think our narrative and profile is very different today than it’s ever been, especially on the heels of realignment. We’re 16 strong now, coast to coast.

“I think there are ways that we can monetize our business without necessarily giving up our name. So, not that it’s off the table, but I would say it’s probably on pause right now, because we are finding other ways to grow the commercial side of the business without necessarily having to give up the equity that we’re building.”

Since taking over as Big 12 commissioner, Brett Yormark has shown the ability to be innovative in the role. Formerly the CEO of Roc Nation, he helped broker a partnership with WWE that’s reportedly preparing to expand and led the charge on a new media rights deal with FOX and ESPN, which will kick in at the end of the current agreement.