Private equity and venture capital firms are increasingly interested in investing in NCAA sports programs, particularly those with strong football teams. The high revenue generated by college football, driven by lucrative television deals and passionate fan bases, is attracting these investors. Firms like College Sports Tomorrow, Smash Capital, and Collegiate Athletics Solutions are proposing partnerships that would provide capital to schools in exchange for a share of future athletic revenue.
Private equity and venture capital enterprises such as College Sports Tomorrow, Smash Capital and Collegiate Athletics Solutions are looking to buy in to NCAA sports programs. Football generates roughly 75% of athletic program revenue at typical Power 4 schools, according to people familiar with the economics.At the very top of the heap are the schools that excel on the gridiron.
This year's expanded, 12-team College Football Playoffs kick off Dec. 20. ESPN parent Disney signed a six-year extension in March for the rights to the games through 2031. The deal is worth an average of $1.3 billion annually, more than double the previous deal, according to media reports.the college football ratings, experts CNBC spoke with believe the conference will leapfrog the Big Ten with the richest television deal when its current agreement expires in 2033-34.
Private equity, of course, is not a new concept for sports. In North America, Major League Baseball, the National Basketball Association, the National Hockey League and Major League Soccer have permitted private equity firms to own limited partner stakes for several years.
There is also the belief that the business acumen from outside investors could drive profits even higher. "There's a big opportunity to drive EBITDA higher in college sports because there are easy ways to maintain quality while reducing expenses," said Kishner.between the NCAA and the five largest conferences would award compensation to 14,000 students who were previously prevented from earning endorsement money.
NCAA College Sports Private Equity Football Investment
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