Utah to enter landmark private equity agreement raising $500 million
As someone who naively put value in scholarships and education, it just feels like there are no brakes to pushing further into Pro models. Just hope if one of these things blow-ups (i.e. debt, liabilities) that it doesn't sink the academic side.
Link:
Utah PE
12 Replies
7mo
who paid the insurance for the 100 22 and under drivers- that's mad
(In response to this post by VT757to276)
7mo
the dealership. I'm also pretty sure the players didn't get to keep them.
(In response to this post by EDGEMAN)
E
EDGEMAN
7mo
...for their O-linemen. Same deal with the wrap advertising.
(In response to this post by reestuart)
7mo
Then the real estate side will raise the rent on the land for the university causing them to go out of business? And it will be broken up into parts and sold off? Sounds about right.
(In response to this post by VT757to276)
7mo
(In response to this post by VT757to276)
7mo
PE firms expect a return on their investment. So in 5 to 7 years - they will want their money plus a return. Utah will need to issue debt. Doubt long term this is smart.
(In response to this post by VT757to276)
7mo
PE is the payday lender of college athletics. Initially the schools that obtain PE funds think they are flush with cash. Eventually the bill comes due, and for all but the biggest athletic programs, that bill will be terminal.
(In response to this post by Turk Malloy)
7mo
with very detrimental results. This includes some European football (soccer) clubs who really paid a steep price when the deal with American private equity investor groups went south. Ask me how I know ;-)
(In response to this post by Gobbler Guru)
7mo
isn't a payday loan. This is buying a share of the conference (Big Ten) or Utah athletics revenues. They don't have real control over decision making, but at the same time, what happens if revenues decline in Utah's case? I've yet to see how the ROI works for these deals. Interesting to watch, for sure.
(In response to this post by Gobbler Guru)