04/30/26 04:38:00
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04/30 16:36 CDT Big 12 strikes a private equity deal in hopes of growing
revenue, AP source says
Big 12 strikes a private equity deal in hopes of growing revenue, AP source says
By STEPHEN HAWKINS
AP Sports Writer
DALLAS (AP) --- The Big 12 has approved a five-year agreement with RedBird
Capital Partners, becoming the first conference in major college sports to
strike a league-wide, private equity deal, multiple people with knowledge of
the deal told The Associated Press on Thursday.
The people spoke to the AP on condition of anonymity because neither side
announced the strategic partnership. Front Office Sports and Yahoo Sports first
reported it, and RedBird Capital posted both stories on its website.
The deal includes Weatherford Capital and was ratified by Big 12 presidents and
chancellors last week, the people said.
The three-prong partnership is designed to grow revenue for the league at a
time when some schools are strapped for cash and vying to better position
themselves for the next iteration of the ever-changing landscape of college
sports.
RedBird will provide the Big 12 with a $12.5 million capital infusion and help
create more commercial revenue for the conference. The league's 16 schools also
will have access up to $30 million each, a line of credit that would have to be
paid back with a double-digit interest rate over time.
It's unclear how many schools would even consider taking the money, the people
said. But that kind of cash could help universities boost payouts in football
and men's basketball and potentially compete with the Big Ten, which has won
three consecutive football national championships as well as the last one in
men's hoops, and the Southeastern Conference.
Any short-term gain might have long-term ramifications if a group of select
universities break from the NCAA and form a super league, a prospect that has
been considered as a potential solution to revenue disparity in recent years.
Also noteworthy, RedBird is the second-biggest shareholder of Paramount, which
owns CBS and is working to acquire TNT. And that could help create additional
television partners for the Big 12 during its next negotiating window. The
league's current broadcast deal expires in 2031. Media rights deals for major
conferences account for a majority the revenue distributed to its members.
The capital and equity industry has emerged as a way to ease the financial
burden facing universities that are now tasked with paying players for the
first time in history.
Utah, a Big 12 member, became the first school to land a private equity deal
when it signed with Otro Capital. The Big Ten negotiated with UC Investments
for months before the deal fell apart because of opposition from Michigan and
USC. And the SEC has been working with investment banker Goldman Sachs to
explore potential partnerships despite pushback from league presidents and
chancellors.
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AP Sports Writer Mark Long in Gainesville, Florida, contributed to this report.
___
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