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Risk v. Reward

Posted on: June 13, 2024 at 17:42:42 CT
ScottsdaleTiger MU
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The vast majority of equity investments in a business enterprise involve some degree of risk. Generally, the greater the risk the greater reward. The greater reward is necessary to counter/offset the risk and is necessary to attract investors.

Investment in the new Big 12 would involve risk, i.e. what happens if the Big One comes calling and takes Colorado, Utah, Arizona State and Arizona or just a couple of them after a couple of seasons.
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CBS Sports Story On Big XII Private Equity Move - ScottsdaleTiger MU - 6/13 17:20:06
     Private equity buys 20%. Siphons off revenue. The - TigerMatt MISS - 6/13 23:22:16
          There's no way it ends well for the Big 12. There are no - zounami MU - 6/14 02:54:39
               The key will be if the Big 10 and SEC play each other - Genco98 MU - 6/14 05:51:15
                    agreed (nm) - zounami MU - 6/14 12:41:08
     Quit selling America to other countries!(nm) - shorty MU - 6/13 21:51:14
     Power 2-1/2 plus the little brother not 4(nm) - TigerFan92 STL - 6/13 18:31:16
     Its Still Little League Football - TennesseeTuxedo UT - 6/13 18:21:38
     Europe, "Let's hustle some dumb Americans like the Big IIX" - tigertix MU - 6/13 17:58:39
     Risk v. Reward - ScottsdaleTiger MU - 6/13 17:42:42
          I would imagine that it could be possible that the contract - JeffB MU - 6/13 19:20:53
          Regarding your last paragraph, the article says there would - zounami MU - 6/13 17:45:28
               And how would that new GoR be enforced? - ScottsdaleTiger MU - 6/13 18:02:21
                    Of course, they would probably try and structure it so that - JeffB MU - 6/13 20:15:44
                    You're confused about what the GoR is. It doesn't prevent - zounami MU - 6/13 18:10:37
                         Texas & Oklahoma left a year before their GoR expired, but - JeffB MU - 6/13 20:33:06
                              Yes. "It would be based upon who is the home team"... - zounami MU - 6/13 21:47:59
                                   btw, the Big 12 GoR still applies to Texas & Oklahoma... - zounami MU - 6/13 21:54:28
                                        Per the article I linked to, they aren't taking the hit they - JeffB MU - 6/13 22:25:43
                                             Right. It was negotiated down from ~$160 to ~$100 mil... - zounami MU - 6/14 02:51:34
                                                  $20 million of that was what all of the Big 12 teams had - JeffB MU - 6/14 07:56:14
                                                       Colorado's signing bonus was a measly $2 million... - zounami MU - 6/14 12:49:55
                                                            Excerpts from the article: - JeffB MU - 6/14 15:46:55
                              No. Texas & Oklahoma negotiated a deal to leave a year... - zounami MU - 6/13 21:45:48
               btw, Scottsdale, how would you feel about your Sun Devils - zounami MU - 6/13 17:58:31
                    There are multiple options on how to structure exit fees. - JeffB MU - 6/13 20:11:30
     Here's the main problem: What happens after each school... - zounami MU - 6/13 17:21:12
          How the gamble could possibly pay off for them... - JeffB MU - 6/13 17:36:52
               I posted a reply to that effect below, but it's wishful... - zounami MU - 6/13 17:39:03
                    Could be, but I doubt the private equity firms and their - JeffB MU - 6/13 17:42:43
                         The problem is athletic departments don’t turn profits - hou4mu MU - 6/13 20:50:50
                              They might not have to cut expenses. Governments are - JeffB MU - 6/13 22:47:26
                              Correct. However, investors think the TV deals will continue - zounami MU - 6/13 21:59:18
                                   But the deals could have expiration dates on them, just like - JeffB MU - 6/13 22:49:48
                    ...As an investor, I would view it as a "pump & dump" scheme - zounami MU - 6/13 17:41:04
          I'll clarify with a logical extreme. Imagine if the Big12... - zounami MU - 6/13 17:28:29
               ...The rationale for such a deal is that partnering with a - zounami MU - 6/13 17:38:25




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