With the SEC and Big Ten dominating the college athletics landscape, at least in terms of revenue share, there is pressure for other conferences to do what they can to secure more resources.
Many leagues will not be able to keep pace, but a cash infusion can go a long way in ensuring that they do not fall far behind in this rapidly changing industry. The Big 12 is close to making such a move.
“Big 12 presidents & ADs today reviewed bids from three finalists in the league’s pursuit of a capital partner, sources tell @YahooSports,” college football reporter Ross Dellenger posted on X. “Firms are proposing to infuse millions to schools. RedBird Capital has emerged as the leader. A decision is expected in the coming weeks.”
Strategic Investment Partner
Founded in 2014 by Gerry Cardinale, RedBird Capital Partners manages more than $10 billion in assets. The firm has a diverse portfolio in the sports sector, including ownership stakes in A.C. Milan, Toulouse FC, and a share of Fenway Sports Group. RedBird focuses on strategic partnerships and long-term value creation in sports, media and entertainment.
In May 2024, RedBird, in collaboration with Weatherford Capital, launched Collegiate Athletic Solutions. This initiative aims to provide capital and business development support to university athletic departments across the U.S. CAS offers investments ranging from $50 million to $200 million to select universities in exchange for a share of future revenues. The goal is to help athletic programs improve their facilities, operations and overall competitiveness.
Dellenger clarified that the proposal in question is of the capital nature and not equity. The Big 12 Conference did pursue a private equity deal with CVC Capital Partners last summer, but no arrangement was ultimately procured. Additionally, Commissioner Brett Yormark had his sights set on selling the naming rights of the league to insurance behemoth Allstate. While no partnership has come to pass as of now, it is clear that the Big 12 is considering every possible avenue as it seeks immediate spending power.
Is the Big 12 navigating a dangerous terrain?
Partnering with RedBird Capital through CAS could provide the Big 12 and K-State Athletics with a financial boost, enabling member schools to invest in infrastructure, coaching and athlete development. This capital infusion is crucial as the conference tries to compete financially with the SEC and Big Ten.
However, the move also raises questions about the growing influence of private equity in college sports and the potential long-term impact on the traditional collegiate athletics model. As the Big 12 navigates this decision, the outcome could set a precedent for similar partnerships, reflecting a broader trend of private equity’s increasing presence in the sports industry.
The Big 12 is trying to get ahead of the game and thrust the sport into a future that others think is inevitable. But does anybody actually want to be the one to open that door? Either way, the clock is ticking, and the stakes have never been higher.
