Privatization of College Football (or all of sports)

[StevensTechU]

Putting it on this forum because my question specifically is -

If Oregon Football became owned by private equity or a specific owner/donor rather than the university itself, would it affect your fandom? More a fan, less a fan, or not a fan at all?

[Duck07]

Yes, I really don't like the way College (and Pro) sports is trending.

I'm once again reminded that if the old Pac 12 still existed, nothing about the Conference rankings would be an issue with Oregon at the top, ASU, Utah, USC and UW all Top 25 or fringe and these moves for cash grabs also belie the fact that most RSN are all going under.

I can't think of a better way to ruin something than by letting the Private Equity Bros into the fold. I did have the thought with NIL that at some point soon these teams aren't going to give 1 iota about grades in school when they're paying them 500K+.

[OregonFan4Life]

As a CPA, I can say Duck07 is right, private equity firms are ruining everything they touch, starting with the medical field. A lot of CPA firms have been just noticing the dollar signs and selling to private equity firms ruining their lives and client relations for the sake of the cheapest overseas labor possible. So I have seen first hand how badly private equity firms are ruining industries.

With that said, I can’t give up Oregon football, it’s a bad addiction. I thought I’d be less of a fan with NIL and conference realignment, but I still care as much as ever.

[bellsduck]

I already care less about it than I did before the Pac disintegrated and less than before NIL started.
Similar thing happened with FA in pro sports. It's tough to build a relationship with players any more. Cheering for the players that spent the majority of their career at your school or in your city was at least partially what drew and draws me in.
Haven't been to a pro game in years because the cost is exorbitant (I don't know who can afford to take a family), the cost is now hitting even the tv screen at home where you have to pay a decent chunk of change to watch at home, and the pay is so insane that players have become divas in many regards.
So if college sports continues on this road it's on then yes I will less of a fan and from a even further distance. I've got plenty of other hobbies in my life I can spend time on, including one of my passions which is officiating basketball. I don't think I'd miss college sports that much. As it turns out, I don't miss the pros that much and honestly I didn't anticipate that.

[rockthief]

If this happens, the firms will make $$$$, then they will pull out when profits dip. This would be ruinous. NIL is bad enough.

[duckpoint]

Yes, but I don't see that as a realistic possibility in the near term. However, the greater structure of CFB is already owned and controlled by the media and BCS Properties LLC (still). The NCAA has been sidelined to a large degree not wanting to assert itself into more lawsuits relating to NIL, etc....

I'm still of the opinion that the 2 most relevant conferences will expand to about 40 teams and separate from the rest of CFB. The private ownership of the CFP doesn't need the dead weight of the other 90 teams.

Overview of BCS Properties LLC

BCS Properties LLC is a legal holding company established in connection with the Bowl Championship Series (BCS), the postseason college football selection system that operated from 1998 to 2013. Despite the BCS's dissolution, the entity continues to exist as a private limited liability company primarily focused on managing intellectual property and related assets in the realm of college football postseason events. It is not a publicly traded company and does not engage in direct operational activities like event hosting; instead, it serves as a custodial and administrative vehicle for trademarks, copyrights, and other proprietary elements.Key details include:Formation and Leadership: Formed in the late 1990s to support the BCS, it is overseen by figures tied to the original BCS structure. For instance, Bill Hancock, the former BCS executive director, plays a central role in its affiliated operations.

Business Scope: The company holds and licenses intellectual property rights, including logos, marks, and branding elements. It generates revenue through licensing agreements, media rights, and merchandise tied to its portfolio.

Relationship to the College Football Playoff (CFP)

BCS Properties LLC maintains a direct and foundational relationship with the College Football Playoff (CFP), which replaced the BCS starting in the 2014 season as the premier postseason tournament for NCAA Division I Football Bowl Subdivision (FBS) teams. This connection stems from the transitional structure designed to preserve continuity in legal, financial, and branding aspects after the BCS era ended amid widespread criticism over its selection process (e.g., reliance on polls and computer rankings rather than a true playoff).

Ownership of Assets: The company owns all trademarks, copyrights, and intellectual property related to the CFP, including the "College Football Playoff" logo, the National Championship Trophy branding, and associated marks for events like semifinals and quarterfinals (especially relevant after the CFP's 2024 expansion to a 12-team format). For example:The "COLLEGE FOOTBALL PLAYOFF" mark is registered for entertainment services such as broadcasting games, organizing tournaments, and providing online content like scores and statistics.
Related trademarks cover merchandise (e.g., keychains, clothing) and stylized logos, but not the literal phrase for core services due to initial USPTO rejections deeming it "merely descriptive" (though variants like #CFBPLAYOFF were successfully registered).

Governance and Management Ties: While day-to-day CFP operations are handled by CFP Administration LLC (a separate entity comprising the 10 FBS conference commissioners and Notre Dame's athletic director), BCS Properties LLC acts as the overarching holding company for CFP properties. This setup ensures seamless inheritance of BCS-era contracts, such as ESPN's media rights deal, which transitioned directly to the CFP.

Historical Context: The BCS faced backlash for controversies (e.g., exclusion of deserving teams like Utah in 2004 or TCU in 2009), leading to the CFP's creation. By retaining BCS Properties LLC, the new system avoided rebuilding legal frameworks from scratch, allowing for efficient management of the $500+ million annual revenue from TV deals, sponsorships, and bowls.

In essence, BCS Properties LLC is the "behind-the-scenes" guardian of the CFP's brand and legacy, bridging the old BCS model with the modern playoff era without direct public visibility. For the latest on CFP expansions or events (e.g., the 2025 National Championship), official sources like collegefootballplayoff.com provide updates.

[StevensTechU]

It's been a seemingly-endless number of discussions on this topic, and I wasn't aware of this one when I posted this thread earlier today, but apparently the Big Ten is close to selling a stake in the conference. Here's an article from ESPN.

https://www.espn.com/college-sports/sto ... pital-deal

As I think I've mentioned before on this forum, I'm a finance professional and interact with private equity investors daily. One thing I think PE is really good at is positioning itself to founders and operators as being brilliant operators of businesses despite bringing very little practical experience. This case is the most clear case of this - as there has never been private capital in college sports, there is no one in the private equity space who has any meaningful college sports experience. And yet, they've been able to sell presidents and athletic directors on a narrative that they can do it better than it's presently being done. It's fascinating.

In addition to not seeing any incremental gains that the schools or conferences couldn't get themselves by contracting with professionals in the normal manner, I don't see what the need is for a giant infusion of capital. A short term infusion of capital is only going to help very temporarily, and when it runs out, the schools will realize they don't get 100% of the ongoing proceeds anymore and there's a great chance they'll be worse off. To pull a random name to illustrate - lets say Cal gets a huge check, gets better players for a year and has success, then other schools will see that and do the same and Cal will be right back where it was, but now they get only a percentage of the proceeds. I worry that this is going to be the college sports equivalent of payday loans.

[greenyellow]

Bringing in private equity money is basically the same thing as the networks flashing wads of cash at schools to get them to leave conferences. They're hoping to blind schools and conferences with money to overlook how bad of an idea privatization is, similar to how they got them to overlook the negatives of realignment.

[bdkipe]

Dan Lanning made a great point in his Trey Wingo interview about being thr biggest developmental league for the NFL.

I think the NFL and their owners should take some equity in college football and then you’d erase the need for PE while also meeting the need for raising the capital that is allegedly needed.

[Duck07]

Dan Lanning made a great point in his Trey Wingo interview about being thr biggest developmental league for the NFL.

I think the NFL and their owners should take some equity in college football and then you’d erase the need for PE while also meeting the need for raising the capital that is allegedly needed.

Nobody can explain what this cash infusion is for exactly, especially after the already enormous tv deal that caused these conference changes to happen.

What were leading up to is the erasure of College sports in favor of just semi-pro Football and Basketball with a school name and you can't take NFL money and not have the same drawbacks.

[StevensTechU]

Following up on this, the reporting is that the Big Ten would receive $2.4B for a percentage stake of media rights to either its football teams or all athletic programming. USC and Michigan seem to be united in asking for more diligence, including asking the question of how this makes things better long-term and not just short-term.

That last question brings up a fundamental point- school presidents and athletic directors rarely work at schools for decades. Decisions they make that lead to short-term gain is potentially all they need, while dealing with the long-term repercussions (diminished ownership and revenue) is left to their successor and successor's successor.

[Duck07]

Following up on this, the reporting is that the Big Ten would receive $2.4B for a percentage stake of media rights to either its football teams or all athletic programming. USC and Michigan seem to be united in asking for more diligence, including asking the question of how this makes things better long-term and not just short-term.

That last question brings up a fundamental point- school presidents and athletic directors rarely work at schools for decades. Decisions they make that lead to short-term gain is potentially all they need, while dealing with the long-term repercussions (diminished ownership and revenue) is left to their successor and successor's successor.

Only time I've been glad to see USC do something right it seems because one of their points I've read is "how does this help reduce the rise in costs?" (Firing James Franklin for 54M sure helps! lol)

Between the recent court rulings and the removal of the NCAA as any kind of functional institution that can create rules and enforce them is the reality that Pandora's Box has been opened and there is no going back. The wrong people (PE) are now going to squeeze the profits out of the system while putting all of the losses onto the tax-payers of those states. It's so fucked.

[StevensTechU]

The latest: https://sports.yahoo.com/college-footba ... 45573.html

Sounds like USC and Michigan aren't fans of it, but there are some desperate parties who are trying to skirt the current governance in order to make it happen. One thing Ducks fans will be interested to note is that the investment requires Ohio State, Michigan, and Penn State get a greater share of distributions than Oregon and everyone else.

[bellsduck]

Well why is Oregon in favor of it then if again they're not going to get equal distribution?

[Duck07]

The latest: https://sports.yahoo.com/college-footba ... 45573.html

Sounds like USC and Michigan aren't fans of it, but there are some desperate parties who are trying to skirt the current governance in order to make it happen. One thing Ducks fans will be interested to note is that the investment requires Ohio State, Michigan, and Penn State get a greater share of distributions than Oregon and everyone else.

It's a paltry amount of money over 20 years and 18 schools to be frank, especially accounting for the tilted payments. So that ~135M (over 20 years) is coming in at like 4.5M/year extra.

What does Oregon need that for relative to the risk of giving away potentially even more down the line?