While the NCAA is facing a multi-billion dollar settlement that will reduce revenue distribution to its leagues and schools, the Big 12 is considering a “first-of-its-kind” private equity investment to “ensure the league’s long-term financial and competitive security,” according to a report from CBS Sports.
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. A new NIL-driven college basketball event 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.
Schools are having to seek out additional revenue sources as a$2.8 billion dollar settlement in the House v. NCAA case is brought before a district court judge for final approval. If approved, colleges will have to fund $1.65 million to current and former student-athletes over a 10-year period through a reduction in school distributions. Additionally, Power Four leagues will have up to $22 million to share annually with student-athletes, according to CBS Sports.
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.
The Big 12 and Gonzaga have had discussions about the Bulldogs potentially joining the conference one day, as Brett Yormark looks to capitalize on the value of college basketball by bringing in one of the most successful programs over the last decade. Since the two sides met in Spokane last fall, there hasn’t been indication either way if the league would extend an invitation or not.
West Coast Conference commissioner Stu Jackson has said Gonzaga remains a committed member to the WCC, which added Washington State and Oregon State as affiliate members for two seasons starting next fall. The conference expanded again this spring to include Grand Canyon and Seattle University, both of which will join in 2025.
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.
