To say that Brett Yormark hasn’t been one of, if not the most aggressive conference commissioners for the Big 12 of all time, would be an understatement. Last week, Yormark announced that the Big 12 was open for business. In the past when he has made this remark, it has been a hint of conference expansion. While that may still be the case, this time, it seems he is looking to do something that no conference has ever done – get into private equity deals.
Luxembourg-based CVC Capital Partners is looking to invest $800-$1 billion in the league in exchange for 15-20% equity. According to a CBS report, Brett Yormark and a group of Big 12 presidents have been working on the deal, but no one has made a public statement. The agreement would go a long way in further securing the Big 12 in many ways. However, there is also some risk.
Who is CVC Capital?
![BREAKING: Big 12 Considering Massive $1 Billion Private Equity Investment - What Does This Mean? 1 La Liga](https://gridironheroics.com/wp-content/uploads/2024/02/USATSI_21108798_168400517_lowres.jpg)
CVC Capital is an investment firm that works with over 130 companies worldwide. Its investments range from consumer retail to financial services and healthcare. Some of its more well-known brands include La Liga (Spanish professional soccer), Lipton Tea, WTA, and multiple huge medical companies that make millions every year.
CVC Captial is certainly a company that has built its reputation and is respected worldwide. They don’t seem to jump into deals to make a few dollars (or euros). Everything they seem to work with seems to be with the understanding that they are going to mutually grow their brands exponentially.
Pros of Working with CVC Capital
![BREAKING: Big 12 Considering Massive $1 Billion Private Equity Investment - What Does This Mean? 2 New Big 12 Commisioner Brett Yormark at Big 12 Media Days](https://gridironheroics.com/wp-content/uploads/2022/07/yormark-062822-getty.jpg)
If the Big 12 were to pursue this option, there would certainly be quite a few positives.
- The Big 12 would be the first conference to enter a private equity deal. Other conferences may follow suit, but just like the Big 12 getting ahead of the Pac 12 on a media deal, the question becomes, will they get the same value?
- Money. There are a lot of different angles to take with this.
- The recent House vs. NCAA lawsuit says that schools may end up having to pay $22 million in player salaries. For many schools, this means cutting sports or athletic departments completely. This investment would protect against that.
- The money would certainly lower the gap between the Big 12 and the SEC/Big 10 and surpass the ACC significantly. Suddenly, ACC schools will begin to position themselves to join the Big 12 actively.
- The Big 12 already wants to go international, with games being played in Mexico. Working with a European investment firm would open the door to doing events in Europe. Remember, it would be in CVC’s best interest to grow the brand in Europe. If they are willing to pay $1 billion for investment, what’s another $2 million to host a game in Spain in Real Madrid’s stadium, where they may make their money back?
- Conference security would be part of the agreement. It’s hard to imagine a scenario where an agreement is made without all 16 teams signing off on an agreement to stay in the conference long-term without a serious buy-out that even Texas couldn’t have afforded.
Potential Negative Side of Big 12 Working with CVC
![BREAKING: Big 12 Considering Massive $1 Billion Private Equity Investment - What Does This Mean? 3 USATSI 11628629 scaled](https://gridironheroics.com/wp-content/uploads/2024/05/USATSI_11628629-scaled.webp)
With any investment comes risk. If CVC owns 20% of the Big 12, suddenly, their interests and desires need to be addressed before any big decision. What if CVC decides that any non-revenue sport needs to be eliminated? Or what if they decide they really want to pursue certain schools for expansion that don’t fit the mold or culture of the Big 12?
In other words, a lot of the influence on the conference’s future would come from a company thousands of miles away that has never really invested in the game of football.
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Overall, I think that this deal should be explored more and seriously considered. The fact that CVC has never gotten involved in football makes me believe that they may, for the most part, stay out of the daily decision-making that the conference has to make. Sure, they’d be present to vote on big matters, but for the day-to-day scheduling, sponsorships, and stuff that fans actually see, they wouldn’t likely intervene.
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