ADVERTISEMENT

"Private Equity" Getting Into College Sports

RebelSlugz

Gold Member
Nov 24, 2022
13
46
13


"After all, they do have an incentive to see increases in a department’s revenue: They earn a percentage on any new annual growth. Over a 10- to 20-year period, that percentage decreases from, perhaps, 22% in the first few years to 2% by its end, as the firm meets its original principal investment. Weatherford describes this as taking a “revenue royalty.”

If there is no growth, the firm does not take a cut.

“They are not mandated to pay us back the money we give them,” Weatherford said."

If this happens college ADs & head coaches might get the Boeing whistleblower treatment if those revenues don't grow quick.

Also, what is to stop a major agency like CAA or Klutch from investing & setting up shop within a school's athletic department?
 
ADVERTISEMENT

Latest posts

ADVERTISEMENT
  • Member-Only Message Boards

  • Exclusive coverage of Rivals Camp Series

  • Exclusive Highlights and Recruiting Interviews

  • Breaking Recruiting News

Log in or subscribe today