Utah to enter landmark private equity agreement worth $500 million, per report - CBS Sports

Glad you're here, Doug. I say that with all sincerity. Buckle up your chinstrap. Things are moving quickly.

Robert Wilson said:

---

Utah to enter landmark private equity agreement worth $500 million, per report - CBS Sports

Glad you're here, Doug. I say that with all sincerity. Buckle up your chinstrap. Things are moving quickly.

---

how does this work legally? How can a non profit tax exempt entity create a for profit entity. Who is on the hook when it goes south, tax payer of Utah?

I really don't know, but a few postulations/questions...

Probably they set up a for profit subsidiary that is majority owned by the university and has minority owners that include the PE firm (interesting because PE generally takes control).

Now your BMDs become shareholders? So instead of making charitable contributions, they're making investments.

I assume the PE guys have got a revenue model that they believe is better than what's currently happening.

Article says aiming for liquidity in 5-7 years. From what? Another PE firm buying you out? It's not like the University of Utah is going to sell off its athletic department? Or are they (I mean they kinda partially did already)?

May God help us all https://t.co/QOzoqMs5HZ

— Shehan Jeyarajah (@ShehanJeyarajah) December 9, 2025

These private equity deals put out misleading numbers and the media gullibly accept them.

A PE fund may "bring in" some large number BUT most of it is EXISTING revenue from ticket sales, BMD's, etc. The proper questions are 1) whether it brings in NEW revenue and 2) whether any new revenue is greater than the amount paid to the PE fund.

Adding a PE fund is adding a new expense--the profits and expenses charged by the PE in exchange for providing some upfront money, PLUS the interest charged by the fund for the amount it advances. It's no different in principle than a mortgage. The mortgage company loans the money that the school then invests in its program. In exchange, the mortgage company expects paybacks of principal and interest.

Don't be fooled by the misleading claims about money to be paid. Unless there is an actual NET financial benefit, a school is only adding a new and permanent expense in exchange for getting some money today which must be paid back later, with interest. Private equity funds expect to make a profit, and that adds long-term and permanent expenses to athletic budgets.

Schools are mortgaging their futures and trying to disguise that fact.

PE firms almost never put up their own, or their investors', money. That money will come in the form of debt, paid by the entity being acquired, along with various management and other fees. Utah will get $500m up front, but it comes with a note.

What Utah just did to the dying sport of College Football https://t.co/zl8Wo6AK78 pic.twitter.com/gSuJMepW1C

— Riley (@Ri_S_OB) December 9, 2025

BearlyBeloved said:

---

Schools are mortgaging their futures and trying to disguise that fact.

---

100% this.

It's short-term thinking when long-term vision is required, a reflection of the en****ification of so many things in the world today.

This is realignment driven, right? Utah has made no bones about wanting to belong in the Big Boy club of college football...could they be setting themselves up to SMU their way into the B1G?

Taking private equity, as a university, is really stupid. It's like borrowing from a bookie/the mob.

These firms aren't doing charity work. They're going to get their cut no matter what, and you'll be left with scraps ... or bruises if the revenue doesn't materialize.

I hope this nonsense blows up in Utah's face quickly so this trend dies a fast death. I hope Utah taxpayers are feeling a squeeze within two or three years, so everyone sees how gross/stupid this actually is.

It is an equity deal, not debt. The University contributes the assets like facilities and IP, OR it licenses them in via a favorable license deal, and takes back common equity. The PE fund infuses cash into the deal and takes a preferred equity strip. The school gets two things - annual fees under its license agreement/facilities lease, and then a chance to collect more if the common equity it retains is in the money (i.e the PE equity plus its preferred return are paid first before it gets to the common equity level). This is a typical PE equity style setup. The PE fund MAY or may not put leverage on the entity, but it typically does. The leverage may be at the entity level, or it may be "back leverage" at the member level. Hard to know.

In any event, this is what I have been expecting for some time. And yes, college football as you know it is now ruined. The bet is that the up-front money will position the school to compete for championships and that by being the first mover, UU will get some first mover advantage. I think that is very short-sighted.

This is not a game Baylor (or frankly any school) should be playing. But it DOES separate what has essentially become a fully professional sport from an educational institution.

Bearknuckle said:

---

This is realignment driven, right? Utah has made no bones about wanting to belong in the Big Boy club of college football...could they be setting themselves up to SMU their way into the B1G?

---

I would guess more likely that BYU has invested so much in NIL, and Utah wants to keep up. Also there are a surprisingly large number of PE firms and outposts in SLC/Park City.

Utah can dream in one hand and **** in the other. See which one fills up quicker. They're never getting into the B10. Despite what their fanbase believes it's not happening. BY should have left their asses to rot in the new P12

IowaBear said:

---

Utah can dream in one hand and **** in the other. See which one fills up quicker. They're never getting into the B10. Despite what their fanbase believes it's not happening. BY should have left their asses to rot in the new P12

---

we're in agreement both on the reality of the situation and the delusion level of their fans...but I do think that's a hope even their leadership harbors.

To GOBL's point above...at the very least they're making a loud statement that BYU isn't going to leave them behind.

Oh there's zero doubt that fanbase believes they're headed to the B10. It's both hilarious and sad.

Bruisers Burner Phone said:

---

In any event, this is what I have been expecting for some time. And yes, college football as you know it is now ruined. The bet is that the up-front money will position the school to compete for championships and that by being the first mover, UU will get some first mover advantage. I think that is very short-sighted.

This is not a game Baylor (or frankly any school) should be playing. But it DOES separate what has essentially become a fully professional sport from an educational institution.

---

I'm still curious to know what their take is on the revenue streams. I'd hope it's more than just a first mover advantage, but I'm sure that's part of it. Also still curious what they see as their liquidity options in 5-7 years.

To your last point, yeah, generating investor return is quite a different paradigm from an educational institution that is supposed to be helping develop young men. But ...once we turned them into professional athletes with free agency, the rest of this may have been almost inevitable.

USC and Michigan have been opposed to the B1G's $2 Billion PE and that should give any university board a pause. Those two weren't born yesterday.

I could see investors skimming profits, creating higher ticket prices, prioritize revenue over athlete development. Any burdens could limit future investments in facilities.

Investors buy ownership stakes, not loans. They get a share of profits or assets, not interest payments. All that said even equity can strain finances if payouts to investors cut into reinvestment for scholarships or other cash flow.

Regardless of my belief this is wrong, it is full speed ahead by those left behind and it will take several years creating cash flow issues.

Private equity is bad. Just squeeze revenues and don't reinvest.

That's why Hooters sucks now and was in bankruptcy.

How do you F up boobs , beer, and sports.

Quote:

---

How do you F up boobs , beer, and sports.

---

Ask Rhoades or the poor soul whose life was ruined thanks to our piety and gossipy groups in charge.

Aliceinbubbleland said:

---

Quote:

---

How do you F up boobs , beer, and sports.

---

Ask Rhoades or the poor soul whose life was ruined thanks to our piety and gossipy groups in charge.

---

The choice to have an affair with Mack was that person's fault. That said, it was totally unnecessary for someone to post the person's alleged identity here, no doubt...that's what Twitter, Facebook and NextDoor are for.

At least they didn't go to a Coldplay concert!

I did. What's wrong with that ? Maybe 15 years ago? Wife held her hands over her ears entire evening.

Aliceinbubbleland said:

---

I did. What's wrong with that ? Maybe 15 years ago? Wife held her hands over her ears entire evening.

---

Bearknuckle said:

---

Aliceinbubbleland said:

---

I did. What's wrong with that ? Maybe 15 years ago? Wife held her hands over her ears entire evening.

---

---

Awesome! Funny. Good one. I missed it completely

Bearknuckle said:

---

Aliceinbubbleland said:

---

Quote:

---

How do you F up boobs , beer, and sports.

---

Ask Rhoades or the poor soul whose life was ruined thanks to our piety and gossipy groups in charge.

---

The choice to have an affair with Mack was that person's fault. That said, it was totally unnecessary for someone to post the person's alleged identity here, no doubt...that's what Twitter, Facebook and NextDoor are for.

At least they didn't go to a Coldplay concert!

---

If it was posted - it wasn't on the Free Board site. We'd already have a shrine made for her and even a Go-Fund me account for helping to get rid of Mack.....

Bearknuckle said:

---

Aliceinbubbleland said:

---

Quote:

---

How do you F up boobs , beer, and sports.

---

Ask Rhoades or the poor soul whose life was ruined thanks to our piety and gossipy groups in charge.

---

The choice to have an affair with Mack was that person's fault. That said, it was totally unnecessary for someone to post the person's alleged identity here, no doubt...that's what Twitter, Facebook and NextDoor are for.

At least they didn't go to a Coldplay concert!

---

Yeah there are families involved who didn't want to be in the public eye. The house is up for sale, sad for the innocent.

PE ruins everything it touches.

Stefano DiMera said:

---

Private equity is bad. Just squeeze revenues and don't reinvest.

That's why Hooters sucks now and was in bankruptcy.

How do you F up boobs , beer, and sports.

---

Hooters couldn't even get the squeezing part right.

Aliceinbubbleland said:

---

Quote:

---

How do you F up boobs , beer, and sports.

---

Ask Rhoades or the poor soul whose life was ruined thanks to our piety and gossipy groups in charge.

---

And it's a bit weird it was that that did him in, and not overstepping his boundaries with players and coaches.

Dia del DougO said:

---

Aliceinbubbleland said:

---

Quote:

---

How do you F up boobs , beer, and sports.

---

Ask Rhoades or the poor soul whose life was ruined thanks to our piety and gossipy groups in charge.

---

And it's a bit weird it was that that did him in, and not overstepping his boundaries with players and coaches.

---

Bingo !

Bearknuckle said:

---

This is realignment driven, right? Utah has made no bones about wanting to belong in the Big Boy club of college football...could they be setting themselves up to SMU their way into the B1G?

---

This is exactly right. It's a play to try and max brand value and rev generation asap to get into the "big 2." So they perceive whatever terms as worth it. We all know Utah has a pretty high view of their perceived position.

The structure is probably similar to what the two early posters said if I had to guess.

Robert Wilson said:

---

Utah to enter landmark private equity agreement worth $500 million, per report - CBS Sports

Glad you're here, Doug. I say that with all sincerity. Buckle up your chinstrap. Things are moving quickly.

---

Nuts.

So how about those Cowboys.

Quinton said:

---

Bearknuckle said:

---

This is realignment driven, right? Utah has made no bones about wanting to belong in the Big Boy club of college football...could they be setting themselves up to SMU their way into the B1G?

---

This is exactly right. It's a play to try and max brand value and rev generation asap to get into the "big 2." So they perceive whatever terms as worth it. We all know Utah has a pretty high view of their perceived position.

The structure is probably similar to what the two early posters said if I had to guess.

---

Maybe we should try and beat them once rather than nit pick with their aspirations.

hodedofome said:

---

PE ruins everything it touches.

---

PE makes business ventures liquid and makes investment capital cheaper. What the market does with that is what markets do. It's just a form of capital formation. If bad and dishonest people use this form of capital formation and investment, then they tend to do bad things. The problem isn't "PE" writ large. The problem is dishonest people that are involved in PE and limited partners (i.e. pensions plans, family offices, universities) that are willing to let dishonest PE people invest their money because they like the returns.

Every single university endowment is heavily invested in "PE."

Congress will be taking a hard look at the tax exempt status of universities that enter into private equity deals. If you want to act like a non-public entity, you better be ready to be treated like one. 🇺🇸 https://t.co/XBufrTt83M

— Congressman Michael Baumgartner (@RepBaumgartner) December 9, 2025