Private equity and venture capital firms are increasingly interested in investing in NCAA sports programs, particularly those with strong football teams. The lucrative revenue generated by college football, driven by media deals and passionate fan bases, is attracting these investors who seek to capitalize on the growth of the sports industry.
Private equity and venture capital enterprises such as College Sports Tomorrow, Smash Capital and Collegiate Athletics Solutions are looking to buy stakes in 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.
According to people familiar with the economics, football generates roughly 75% of athletic program revenue at typical Power 4 schools, which include the ACC, Big Ten, Big 12 and SEC conferences. 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. 'The SEC is almost a super-conference and, because of its football teams, owns the most valuable content in college sports,' said Irwin Kishner, a partner at the corporate department of Herrick Feinstein and co-chair of its Sports Law Group. 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. The National Football League. As a business, college sports, particularly football, is performing well and continuing to grow, which is why investors are looking at the asset class,' said Institutional investors such as Collegiate Athletic Solutions — a proposal by RedBird Capital Partners and Weatherford Capital — would provide capital to help grow a school's athletic revenue. In return, the private equity firms would get a cu
NCAA Private Equity College Football Sports Investment Revenue Growth
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