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House settlement approved. Now what?
- Thread starter Bosler
- Start date
LanderPoke
Well-known member
So they are selling an equity stake in their public athletics department to a private equity firm? wtf ?
Yeah, claim it's a done deal within 6 months??
OrediggerPoke
Well-known member
Far from the truth!! Georgia, Alabama and Tennessee’s legislatures have already passed specific laws facilitating paying players. New Mexico just passed a specific appropriations bill to pay players (albeit at a MUCH smaller level than the SEC states).
We are more likely the last legislature in the nation that would support it. But frankly, I’m fine with that. Using public dollars/taxes to pay college athletes is a gross misuse of funds in my opinion.
Private equity coming to college football (Updated)
After spending the past few years circling from above, the private equity industry is at last swooping in to take a bite out of the college athletics industry.Sports Business Journ
Private equity firms in conferences too? This could be interesting. Could a private equity firm help WYO capitalize on the value? Some time back someone posted program valuations and WYO was pretty decent.
Way out of my area but maybe some partnership between states, universities, and equity firms that can profit from outdoors-related activities. They enhance college athletics and use it as a platform to promote whatever they profit from. States chip in some for tourism.
Probably ridiculous since I have no idea what I'm talking about. We do have outdoor activities and using UW as advertising platform when we play around the US might make sense?
"Gross misuse" is a pretty tough label if it is paid for and is voted on by elected representatives. Some Georgians and Alabamans surely don't want that money used in that way... But state representatives hew fairly closely to their electorates wishes. They may come to regret what they choose or view it as a mistake some day.... But that is different than "gross misuse".
Wyoming politicians and the public opinion upstream of them seem really allergic to spending a public dollar anywhere.... Paying UW athletes who are nearly all from out of state and end up out of state is not going to happen.
This is interesting..
mynorthwest.com
Baumgartner challenges NCAA settlement for fair pay reform
Baumgartner's bill aims to reshape NCAA pay structures and promote fair compensation for athletes while pushing for vital conference reforms.
mynorthwest.com
Not that this will ever come to pass...but it's nice to see people actually looking at the issue squarely. This or something like this is about the only way I see UW sports, and maybe even college sports in general, being something that looks like what I grew up loving.This is interesting..
Baumgartner challenges NCAA settlement for fair pay reform
Baumgartner's bill aims to reshape NCAA pay structures and promote fair compensation for athletes while pushing for vital conference reforms.
McPeachy
Well-known member
Very strange accounting practice there!Check this out. 100 mill in debt then not until July 1 and back to 100 mill in debt. No wonder they don't want to pay poaching penalty.
WSU Regents To Briefly Transfer 100 Million Dollars To Cover Athletics Cumulative Debt-Money Coming From Several Units Including Housing, Dining, Parking & Transportation-Athletics Did Not Run Overbudget This Year
The Washington State University Regents are set to briefly transfer nearly 100 million dollars in the annual exercise to cover Cougar Athletics cumulative debt. State law in Washington requires the…pullmanradio.com
LanderPoke
Well-known member
Reminds me of an article I read of the City of Chicago sold their parking meters to a private equity firm for what seems like a lot, but turned out to be one of the worst deals ever made.
ZapPoke
Well-known member
I used to be an accountant but I haven’t kept up. It sure seems to violate some accounting principle.
OrediggerPoke
Well-known member
Theoretically - ticket sales, donations, media deals, NCAA postseason payouts. In Wyoming’s case, I’m sure we are counting student fees and legislative appropriations in that bucket too.
But realistically, most athletic programs don’t turn a profit under the old model. Wyoming uses football revenues to subsidize other programs. Some years, football itself operates in the red. So the whole notion of now paying players a bunch of money on top of the scholarships/stipends/facilities benefits that they already get makes zero fiscal sense at Wyoming with current revenues. But then again - we live in a country which is largely supportive of the CSU model that apparently believes debt should have no limits and we shouldn’t worry about it.
Looks like more drama to come:
There's a stay on the jdugement
frontofficesports.com
There's a stay on the jdugement
Female Athletes Appeal House v. NCAA Settlement Approval
In the appeal, athletes argue that the terms violate Title IX, the statute governing gender equity in sports.
frontofficesports.com
If you eliminate "university-based revenue" and look only at revenue coming from outside the University (conference payout, ticket sales, apparel, etc.), is the football team profitable? And also paying facility costs?
Honest question.
Here's the thing, if you invite private equity into a discussion, you had better be prepared to perform. Private money is usually not patient and will not tolerate (or invest in) mediocrity and malaise. I would guess that the risk adjusted returns associated with a team like Wyoming would be extremely low. I don't exactly know how these deals are being constructed, but nothing in our performance, governance, or personnel would justify anything more than a speculative investment in UW, meaning the returns to us would likely be anemic. Further, the terms of any deal would likely be unfavorable - as they say, beggars can't be choosers.
The beauty of capitalism and private money is that it is usually brutally honest - with no brown- and gold-colored glasses to shield admin, fans, players, and coaches from the harsh truths and realities they have created and become subject to through time (somewhat related to things outside our control and somewhat tied to things they/we have failed at or refused to do). I can't see UW or the athletic department inviting that level of scrutiny any time soon.
The beauty of capitalism and private money is that it is usually brutally honest - with no brown- and gold-colored glasses to shield admin, fans, players, and coaches from the harsh truths and realities they have created and become subject to through time (somewhat related to things outside our control and somewhat tied to things they/we have failed at or refused to do). I can't see UW or the athletic department inviting that level of scrutiny any time soon.
OrediggerPoke
Well-known member
I see the Wyoming Constitution as probably serving as a bar to a private equity relationship with the University athletics program (which receives public dollars). See Article 3, Section 36.
Article 3, Section 36 – Aid to Private Enterprises Prohibited
2. Article 16, Section 6 – Loan of Credit; Donations Prohibited
rocket city poke
Well-known member
Not even close. UW is spending $80 million on the stadium upgrades this year. You cannot overcome the expenditures on facilities when you start looking at an income statement. You also have all the health insurance for the coaches and administrators AND the costs to keep the lights on etc. which is why i get frustrated when they talk about how much money they are making from television or bowl appearances or ticket sales or anything. If you look, the athletic department is already getting $20MM subsidy from the state:
fun to play around with this and look at how much subsidy every school gets when they start talking about how much money they are making.
