Big 12 considering private equity investment of up to $1 billion for as much as 20% of conference

Big 12 members are considering a first-of-its kind private equity investment to ensure the league’s long-term financial and competitive security, multiple sources tell CBS Sports.

On the table is a possible cash infusion of $800 million to $1 billion from Luxembourg-based CVC Capital Partners in exchange for a 15% to 20% stake in the league, those sources said. A portion of the money would go directly to the 16 conference members, and the partnership would give the conference access to CVC’s investment services and clients.

CVC is a global private equity giant that manages over $200 billion in investments worldwide, according to its website. The firm made a presentation to the league at the recent Big 12 spring meetings in Dallas.

While one source described the talks as “pretty serious,” many league presidents need further convincing. Persons who spoke with CBS Sports preferred to remain anonymous due to the sensitive nature of the discussions.

No league has ever been this close to a private equity investment of this kind.

Big 12 teams are currently earning $31.7 million each with Fox and ESPN in a media rights deal that ends in 2031. Add in the cash infusion from private equity, and the two revenue streams would combine to move the Big 12  “much closer” to the Big Ten media rights deal, according to a person with intimate knowledge of the proposal.

The Big Ten leads all conferences with its schools set to earn approximately $75 million per year after it signed a new media rights agreement with Fox, CBS and NBC. (Oregon and Washington are not receiving full shares initially as they enter the league July 1.)

Should the Big 12 and CVC come to an agreement, it is not clear how soon a deal could be completed or when that money would start…

Source link : https://www.cbssports.com/college-football/news/big-12-considering-private-equity-investment-of-up-to-1-billion-for-as-much-as-20-of-conference/

Author : Dennis Dodd

Publish date : 2024-06-13 14:28:30

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