that the Big 12 members are "considering a first-of-its kind private equity investment to ensure the league's long-term financial and competitive security." The reported investment would include a cash influx of $800 million to $1 billion in exchange for a 15% to 20% stake in the Big 12. "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," Dodd reported.
In an era of complete instability in college athletics, private equity investment could enforce some stability for the Big 12. Nothing is completely stable in college athletics regardless of when the Grant of Rights expire , but a third party like private equity would be financially motivated to keep the Big 12 together.3. Improve Position with Expansion?
This is a classic move out of the private equity playbook - they use their scale to create efficiencies across their entire portfolio. CVC would not invest in the Big 12 for the love of college sports or the long-term health of college sports. They would invest if they see a potential return on their investment. Their only connection to the Big 12 is their path to making money.
Cost savings could be short-sighted and harm the Big 12's competitive position in the long run.3. Rock the boat