Big 12 Discovers Payday Loans (Private Equity)

[Steamboat Willie]

So apparently the Big 12 has decided it doesn’t want to wait around for money anymore and is partnering with a private equity–backed fund to… checks notes …borrow against its own future. Very on-brand.

Here’s the gist: a new entity gets created, some conference commercial rights get parked in it, and a finance group backed by RedBird and Weatherford waves around up to $500 million in upfront cash. Schools can opt in, take the money now, and repay it later by giving up future conference distributions. It’s basically revenue sharing meets Payday Loans.

To be clear, this isn’t free money. This is the conference equivalent of saying, “Yes, I understand the interest rate, but have you seen the portal?”

For schools feeling squeezed by NIL demands, roster churn, and the general chaos of modern college football, this is a tempting lifeline. Immediate liquidity to keep up with the Joneses, plug holes, and stay competitive. For others, it’s a long-term mortgage on future payouts in a sport where the future changes every six months.

The most Big 12 part of this? It’s optional. Opt in if you need cash now. Opt out if you think you’ll be better off later. Translation: the resource gap inside the conference is about to get louder, not smaller.

Zooming out, this is another signal that college football is done pretending it’s not a business. Conferences aren’t just leagues anymore — they’re balance sheets with logos. And once private capital starts slicing up “future distributions,” there’s no unringing that bell. History says those bets usually age… creatively.

[HookEm]

1 minute ago, Steamboat Willie said:

So apparently the Big 12 has decided it doesn’t want to wait around for money anymore and is partnering with a private equity–backed fund to… checks notes …borrow against its own future. Very on-brand.

Here’s the gist: a new entity gets created, some conference commercial rights get parked in it, and a finance group backed by RedBird and Weatherford waves around up to $500 million in upfront cash. Schools can opt in, take the money now, and repay it later by giving up future conference distributions. It’s basically revenue sharing meets Payday Loans.

To be clear, this isn’t free money. This is the conference equivalent of saying, “Yes, I understand the interest rate, but have you seen the portal?”

For schools feeling squeezed by NIL demands, roster churn, and the general chaos of modern college football, this is a tempting lifeline. Immediate liquidity to keep up with the Joneses, plug holes, and stay competitive. For others, it’s a long-term mortgage on future payouts in a sport where the future changes every six months.

The most Big 12 part of this? It’s optional. Opt in if you need cash now. Opt out if you think you’ll be better off later. Translation: the resource gap inside the conference is about to get louder, not smaller.

Zooming out, this is another signal that college football is done pretending it’s not a business. Conferences aren’t just leagues anymore — they’re balance sheets with logos. And once private capital starts slicing up “future distributions,” there’s no unringing that bell. History says those bets usually age… creatively.

This thing got out of hand quickly. I like NIL for a number of reasons, but to safeguard the integrity of the sport and these young athletes, it should have had better guardrails in place from the start. 

[Steamboat Willie]

Short version:

The Big 12 didn’t find a new revenue stream.It found a way to advance its allowance. Whether that’s smart leverage or a payday loan depends entirely on how well these schools spend it — and how ugly the next round of realignment gets.

Either way, welcome to college football’s private equity era. Please keep your receipts.

Edited December 17, 2025 by Steamboat Willie

[Rocky P]

6 minutes ago, Steamboat Willie said:

So apparently the Big 12 has decided it doesn’t want to wait around for money anymore and is partnering with a private equity–backed fund to… checks notes …borrow against its own future. Very on-brand.

Here’s the gist: a new entity gets created, some conference commercial rights get parked in it, and a finance group backed by RedBird and Weatherford waves around up to $500 million in upfront cash. Schools can opt in, take the money now, and repay it later by giving up future conference distributions. It’s basically revenue sharing meets Payday Loans.

To be clear, this isn’t free money. This is the conference equivalent of saying, “Yes, I understand the interest rate, but have you seen the portal?”

For schools feeling squeezed by NIL demands, roster churn, and the general chaos of modern college football, this is a tempting lifeline. Immediate liquidity to keep up with the Joneses, plug holes, and stay competitive. For others, it’s a long-term mortgage on future payouts in a sport where the future changes every six months.

The most Big 12 part of this? It’s optional. Opt in if you need cash now. Opt out if you think you’ll be better off later. Translation: the resource gap inside the conference is about to get louder, not smaller.

Zooming out, this is another signal that college football is done pretending it’s not a business. Conferences aren’t just leagues anymore — they’re balance sheets with logos. And once private capital starts slicing up “future distributions,” there’s no unringing that bell. History says those bets usually age… creatively.

Can't wait for what happens when theses schools go into collections for non payment.   

[Steamboat Willie]

A rewrite for Tuesday:                                                                                                                                                                                                                                                                           

Careful — that’s not Portal Claus on the roof anymore. That’s his private-equity cousin, and he brought term sheets.

Here comes Krampus, here comes Krampus,
Right down Deadline Lane.
Funds advancing, futures financing,
Revenue shares in chains.

NIL checks, backroom decks,
Discounted cash-flow dreams.
What fun it is to hit refresh
While PE buys tomorrow’s teams.

Same tune. Corporate lyrics.
Merry Transfermas — now with leverage.

                                                           

Edited December 17, 2025 by Steamboat Willie

[Tuco Ramirez]

Nice job Yormark. You just landed a deal for $500 million for the whole conference while Utah alone signed a deal for the same amount. 

[jhookem91]

Just now, Rocky P said:

Can't wait for what happens when theses schools go into collections for non payment.   

Agreed.  The financial mismanagement in the pros is bad enough, but the collegiate game is starting to look like a financial train wreck for most P4 schools.  The collision will happen just about the time that TV contracts expire and the ACC's exit fee reaches its $75MM minimum (around 2030).  IMO, at that point there could be a division of the haves and have nots.  The haves will be most of the SEC, 5-7 from the Big 10, 3-4 schools from the ACC, and Tech from the Big 12.  Does the SEC stay intact while the other haves form a football only conference, or is a 20-24 team football conference formed including the financially capable SEC teams?  The rest of the schools will likely be waiving the white flag (to various extents) on NIL/rev share at that point.  The Arkansas and Iowa St ADs have admitted as much.  I'm sure the message from Iowa State's AD played a big part in Matt Campbell finally jumping ship, although Penn State is a great opportunity for him.      

[Steamboat Willie]

5 minutes ago, jhookem91 said:

Agreed.  The financial mismanagement in the pros is bad enough, but the collegiate game is starting to look like a financial train wreck for most P4 schools.  The collision will happen just about the time that TV contracts expire and the ACC's exit fee reaches its $75MM minimum (around 2030).  IMO, at that point there could be a division of the haves and have nots.  The haves will be most of the SEC, 5-7 from the Big 10, 3-4 schools from the ACC, and Tech from the Big 12.  Does the SEC stay intact while the other haves form a football only conference, or is a 20-24 team football conference formed including the financially capable SEC teams?  The rest of the schools will likely be waiving the white flag (to various extents) on NIL/rev share at that point.  The Arkansas and Iowa St ADs have admitted as much.  I'm sure the message from Iowa State's AD played a big part in Matt Campbell finally jumping ship, although Penn State is a great opportunity for him.      

That take is probably closer to the truth than most people want to admit.

What we’re watching isn’t some abstract NIL growing pain — it’s a capital structure problem finally colliding with reality. A bunch of schools are operating like pro franchises without pro revenue certainty, and now they’re layering leverage on top of volatility. That works right up until it doesn’t. The timing you’re pointing to is key. TV deals rolling over, ACC exit fees collapsing, private equity sniffing around future distributions — all of that converges around the same window. When that happens, the sport won’t politely rebalance. It’ll bifurcate.

Edited December 17, 2025 by Steamboat Willie

[Tuco Ramirez]

4 minutes ago, jhookem91 said:

Agreed.  The financial mismanagement in the pros is bad enough, but the collegiate game is starting to look like a financial train wreck for most P4 schools.  The collision will happen just about the time that TV contracts expire and the ACC's exit fee reaches its $75MM minimum (around 2030).  IMO, at that point there could be a division of the haves and have nots.  The haves will be most of the SEC, 5-7 from the Big 10, 3-4 schools from the ACC, and Tech from the Big 12.  Does the SEC stay intact while the other haves form a football only conference, or is a 20-24 team football conference formed including the financially capable SEC teams?  The rest of the schools will likely be waiving the white flag (to various extents) on NIL/rev share at that point.  The Arkansas and Iowa St ADs have admitted as much.  I'm sure the message from Iowa State's AD played a big part in Matt Campbell finally jumping ship, although Penn State is a great opportunity for him.      

If this results in Arkansas waiving the white flag, then count me in. 

[Rocky P]

4 minutes ago, Steamboat Willie said:

That take is probably closer to the truth than most people want to admit.

What we’re watching isn’t some abstract NIL growing pain — it’s a capital structure problem finally colliding with reality. A bunch of schools are operating like pro franchises without pro revenue certainty, and now they’re layering leverage on top of volatility. That works right up until it doesn’t. The timing you’re pointing to is key. TV deals rolling over, ACC exit fees collapsing, private equity sniffing around future distributions — all of that converges around the same window. When that happens, the sport won’t politely rebalance. It’ll bifurcate.

I'm still not sure how these PE firms are able to get involved with these public institutions.  Wouldn't the state legislature have to approve them and the terms?  State of Texas isn't going to just let UT start selling off pieces of itself.

[Steamboat Willie]

5 minutes ago, Tuco Ramirez said:

If this results in Arkansas waiving the white flag, then count me in. 

A smaller group of programs with scale, donor depth, media value, and political leverage will keep playing at the highest level. Everyone else will quietly redefine “competitive” and call it sustainability. Not because they want to — because the math forces it.

[Steamboat Willie]

2 minutes ago, Rocky P said:

I'm still not sure how these PE firms are able to get involved with these public institutions.  Wouldn't the state legislature have to approve them and the terms?  State of Texas isn't going to just let UT start selling off pieces of itself.

PE isn’t buying the school. They’re buying future revenue streams, usually at the conference or affiliate-entity level, not carving up public universities like a private company. No PE firm wants oversight committees. These deals are structured specifically to avoid statehouse headaches. The moment a legislature can rewrite the terms, PE loses interest. That’s how this sneaks past the “how is this legal?” alarm bells. Think of it less as privatization and more as: “We mortgaged next decade’s TV checks because the portal is on fire today.”

[jhookem91]

2 minutes ago, Rocky P said:

I'm still not sure how these PE firms are able to get involved with these public institutions.  Wouldn't the state legislature have to approve them and the terms?  State of Texas isn't going to just let UT start selling off pieces of itself.

You would think so, but unfortunately the vast majority of the politicians will go along with it due to political pressure from voters.  Most politicians (especially in the last 20 years) are the most financially irresponsible people around.  They don't make pragmatic, financially sound decisions anymore because those decisions are unpopular.  

[Steamboat Willie]

22 minutes ago, jhookem91 said:

You would think so, but unfortunately the vast majority of the politicians will go along with it due to political pressure from voters.  Most politicians (especially in the last 20 years) are the most financially irresponsible people around.  They don't make pragmatic, financially sound decisions anymore because those decisions are unpopular.  

Most of this stuff is deliberately structured around legislatures, not through them. The conference cuts the deal, creates a separate commercial entity, and schools are just “licensing” rights or adjusting future distributions. On paper, the university isn’t selling the family silver — it’s just refinancing expected revenue. That distinction is doing a lot of legal work.

And yes, when it does brush up against state oversight, the political incentive is basically nonexistent to stop it. Nobody wants to be the lawmaker who gets tagged as “the reason our school fell behind in NIL.” Fiscal restraint loses every time to booster pressure and talk radio outrage.

So you end up with the worst combo:

• Complex financial engineering most voters don’t understand
• Short political time horizons
• Long-term obligations that won’t come due until everyone involved has moved on

It’s not that legislators are voting “yes” after careful analysis — it’s that the deals are designed so they never have to vote at all. And when the bill comes due in 8–10 years, it’ll be someone else’s problem.

Which, honestly, might be the most college-football thing of all.

[Longhornfrenzy]

1 hour ago, Steamboat Willie said:

Short version:

The Big 12 didn’t find a new revenue stream.It found a way to advance its allowance. Whether that’s smart leverage or a payday loan depends entirely on how well these schools spend it — and how ugly the next round of realignment gets.

Either way, welcome to college football’s private equity era. Please keep your receipts.

If you take the loan will they payroll deduct with 36% interest?😁

[Steamboat Willie]

13 minutes ago, Longhornfrenzy said:

If you take the loan will they payroll deduct with 36% interest?😁

Pretty much, yeah — but instead of a payroll deduction it’s a conference distribution garnish and instead of 36% interest it’s called “strategic revenue participation.”

Same concept, better branding.

Miss a payment and suddenly you’re selling Tuesday night kickoffs, your third-tier media rights, and a commemorative patch on the refs’ sleeves. But don’t worry — the term sheet will say “non-predatory.”

[HookemTexas]

This is just stupid and bad business on behalf of the big 12 and schools that opt in imo.  They should only do this if they stand a chance at going deep in the playoffs and winning.

No school in the big 12 stands a chance of building a roster complete enough to truly compete even with borrowed money.  They simply won’t be able to win enough NIL battles to field a complete and competitive roster. They may be able to field one to win the big 12 and that’s about it.

[Steamboat Willie]

9 minutes ago, HookemTexas said:

This is just stupid and bad business on behalf of the big 12 and schools that opt in imo.  They should only do this if they stand a chance at going deep in the playoffs and winning.

No school in the big 12 stands a chance of building a roster complete enough to truly compete even with borrowed money.  They simply won’t be able to win enough NIL battles to field a complete and competitive roster. They may be able to field one to win the big 12 and that’s about it.

While motives don't make this a sound move, most Big 12 programs aren’t opting in because they think borrowed cash magically turns them into a SEC team. They’re doing it because standing still in the NIL era is the fastest way to fall behind permanently. If you can’t retain starters, plug portal holes, or keep coaches from getting poached, you don’t even get to compete for the conference, let alone sniff a playoff. You need enough liquidity to stay relevant: retain core players, avoid roster collapse, stay bowl/playoff-adjacent, and protect media value.

• Bad idea if the goal is “borrow to become Ohio State, Georgia, or Texas.”
• Much more defensible if the goal is “borrow to avoid irrelevance while the sport sorts itself out.”

This isn’t Big 12 bravado. It’s Big 12 triage.