I'll clarify with a logical extreme. Imagine if the Big12...
Posted on: June 13, 2024 at 17:28:29 CT
zounami MU
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sold 100% for $5 billion.
That would be $310 million per school, enough to be financially on par with B1G and SEC schools for about 6 years.
But then what?... Big 12 members would receive ZERO conference revenue from that point on, because it would all be going to a private equity firm.
The Big 12 would then be worse off than even the G5 conferences, completely uncompetitive, and its value would collapse.
20% (instead of 100%) would make the problems more gradual, but eventually it would catch up with them... like spending beyond your means via credit cards.
That's why this would be a bad move/investment for both the Big 12 and private equity firm.