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Big Ten and other Conference Expansion

Jaxbuck
CMic said:
Usually, the capital infusion is required to increase the entity’s revenue (e.g. buy tooling to increase manufacturing capacity).
I haven’t heard how the B1G will use the money. If it’s operational, it’s a failing model.
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In this case, it keeps the sports entity from siphoning any money from the educational entity, no?

That's been the assumption I've been under as to "why take the money" from the start.
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Big Ten and other Conference Expansion

Thump
Jaxbuck said:
PE group wants to invest in a new entity

That new entity is (essentially) the sports tv rights/brand of the B1g ten, not the big ten academic institution we know today

In return for ~2Billion they get 10% and no operational control, B1G gets 90% and runs the show.

Both are betting together that the value of the B1G sports brand (and subsequent tv contracts) will go way up in the newly created seperate entity (again, not the B1G we all know right now).

It appears tsun and USC are saying that locking in those tv rights for 21 years is a deal breaker, and if it's that simple in reality, I completely agree.

The concept of the deal is smart and makes sense. That detail is way out of whack.
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This is where the University Presidents need to jump in.
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