![]() ![]() “Then,” said Patterson, “you get a corpus of funds that you can use to construct a building, make an upfront payment on a contract-or try to exit a conference.” In such deals, the amount of future money is given a discounted present-day value by lenders, who provide cash upfront in return for collecting the stream of money in the future. Patterson is a former GM and top-level executive with team in the NBA, NHL and NFL, as well as a former athletic director at two Power Five schools. “Generally they’re monetizing a stream of media rights or naming rights or other contractually obligated income,” said Pro Sports Consulting’s Steve Patterson in a phone call. In both cases, separate businesses were crafted to house money-generating assets–including All Blacks merchandise sales and 50 years of LaLiga broadcast revenue–which private money could buy into. With LaLiga, its corporate structure prohibits the sale of equity to external investors under Spanish law. In the case of New Zealand, the rugby union is a public entity. How could FSU, a public school, sell anything to private investors? It would likely have to follow a model seen in pro sports similar to the ones that allowed New Zealand’s All Blacks rugby team to take investment from Silver Lake in 2022 and Spain’s LaLiga get backing from fund giant CVC the year prior. Florida State University’s desperation to exit the ACC may finally open the door.Īs Sportico reported Friday, FSU is in discussions with bankers at JPMorgan Chase to explore how the school could raise capital from institutional investors, including private equity funds. Private equity has spent years trying to find a way to invest in college sports directly.
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