of-its-kind” private equity investment to “ensure the league’s long-term financial and competitive security,”The league could see a possible cash infusion of $800 to $1 billion from CVC Capital Partners, a Luxembourg-based firm that manages over $200 billion in investments worldwide, according to its website. In exchange, CVC would have 15-20% stake in the Big 12, according to CBS Sports, while a portion of the cash would go directly to the 16 conference members.
The potential investment would be a first of its kind in college athletics, though it appears it won’t be the last.in Las Vegas, called the Players Era Festival, is backed by RedBird International Media Investments, a privately owned investment company focused on building a portfolio of quality media assets across the globe, according to its website. Florida State has a partnership with private equity firm Sixth Street as it looks maximize its value in an attempt to exit the ACC.
Combine the cash infusion from CVC with the league’s media rights deal, the Big 12 would be “much closer” to the Big Ten media rights deal, a source told CBS Sports. Big 12 schools currently earn $31.7 million each from the league’s deal with Fox and ESPN. Meanwhile, Big Ten schools earn about $75 million annually after the conference signed a media deal with Fox, CBS and NBC.
In regard to the future of the Big 12 and its members, CBS Sports reported that the CVC investment would likely require that the league stays together long-term. The league recently underwent a massive conference realignment shift, as Texas and Oklahoma are set to leave for the SEC next season while Arizona, Arizona State, Colorado and Utah join from the Pac-12. This past athletic season was also the first with BYU, Houston, Cincinnati and UCF in the Big 12.
It’s unclear how soon a potential deal with the Big 12 and CVC could be struck. CBS Sports reported that many league presidents aren’t fully convinced yet.Cole Forsman is a reporter for Gonzaga Nation, a member of Sports Illustrated’s FanNation network. Cole holds a degree in Journalism and Sports Management from Gonzaga University.