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Pac-12 Seeking $750M Investment For Schools, TV Networks

In Sports Business Daily, here:

The Pac-12 is seeking $750M from investors, considerably more than the $500M it originally discussed four months ago, according to multiple sources. The conference will distribute $700M of that investment to its 12 schools. The other $50M will go into a new entity to manage the conference’s media rights and networks. The breakdown is detailed in official bid books that the conference sent to potential investors in recent days. The bid book, which is more than 70 pages, identifies the Pac-12 media holding company as NewCo, which includes all the conference’s media rights and the Pac-12 Networks. NewCo reported an EBITDA of $286M last year, according to the bid book. The book does not outline a timetable to complete a deal, but sources indicated the process will unfold over the coming weeks. The Pac-12 did not comment. …

It sounds like UO’s share would be about $50M one time – plenty to plug the $11M current deficit and repay the ~$40M in subsidies the Ducks have taken from the academic side in the years of Pat Kilkenny and Rob Mullens’s continued plundering. Sorry, not enough left over to save baseball.

6 Comments

  1. charlie 03/21/2019

    Doesn’t that money go towards developing a better product for improved broadcast quality? It’s doubtful the networks care about team aggregate GPA. They want sporting events that’ll draw bigger ratings. Doubtful any of that manna will fall on the academic side..,

  2. New Year Cat 03/21/2019

    I agree, it’s probably safely and legally tied up so as to only benefit PAC-12 sports themselves, because who cares about “students”, it’s all about “athletes”. But maybe a law prof could find a loophole?

  3. Fishwrapper 03/21/2019

    “distribute…to its schools…”

    Like the 25 megadollars sent to each campus each year since the network deal started? How’d that work out?

    Larry wants to see an infusion of cash as he’s leaving in two years so he can – maybe – get a good reference on the way out.

  4. OMA 03/22/2019

    Reading the entire article, it looks to be a case of the Network pulling the standard leverage, line and leave: Leverage the asset probably for more than it is worth; line your own pockets and of the board who rubber stamps it (In this case the Universities represented by their presidents); then get the fudge out of town. We have seen so many of these with Private equity that is just SOP these days.

    It also looks like if they do get this pittance of one time remuneration, the person who does buy it will hold title to west coast college sports (kind of like when MJ bought the Beatles).

    • charlie 03/22/2019

      The OP features the creation of a holding company that will manage PAC12 broadcast rights. If I’m understanding this correctly, the administration of those assets will no longer reside with the unis, but with a private entity. Money that would have been going to the unis will now be siphoned off, at no benefit to the conference. As you point out, U of Owe gets a one time payment, but the private entity will be paid yearly for their services. If I’m reading this article correctly….

      • Fishwrapper 03/22/2019

        Funny: the Pac-12 was formed in 2011 from the Pac-10, with the addition of Colorado and Utah, and at about the same time the Pac-12 Network configuration was announced.

        Essentially, the Pac-12 Network was created as a holding company to manage Pac-12 broadcast rights. As I understand it, the administration of broadcast rights does not reside with the member institutions – they are held by the conference. This gives the conference leverage to make big media deals to return revenue to the campuses.

        Whoops!

        Money that *was* to have gone to the universities has already been siphoned off, at the top.

        To reiterate what I and others have already suggested: This deal is worse than the first, and it’s a deal for Larry – and no one else.

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