https://pitchbook.com/news/articles/investors-surprisingly-line-up-for-small-stake-in-pac-12-at-5b-valuation?fbclid=IwAR2C6V_qZ1Y4VeJ6jdV8cFnYrXjdaLoDaVJ_2IZGsgrlivPPAOMdtGbAcpI
The Pac-12 has already received multiple bids from private investors of at least $750 million, based on a valuation of $5 billion and up, according to Sports Business Daily. And its plan is to reportedly spend the next couple of months working with The Raine Group, which it hired in January as an investment advisor, to ultimately decide whether to accept one of the offers.
The move is meant to infuse cash into a conference that sent out roughly $31 million to each of its member institutions during the last reported past fiscal year, trailing the SEC payout of $43.7 million and the Big Ten's record $54 million distributed to each school. And if it comes to fruition, it would be a huge boost for conference commissioner Larry Scott, who has received heaps of criticism as the league has struggled to keep pace with other Power 5 conferences on and off the field under his watch.
Under the proposed deal, the Pac-12 would spin off its broadcast rights, sponsorships, distribution agreements and more into a holding company dubbed "Pac-12 NewCo," with the conference retaining managerial control. The private investor(s) would own a minority stake in the holding company and potentially exit by either selling said stake or the Pac-12 taking it public. In the meantime, the investor(s) would be in line to nab a significant payout when the conference strikes its next television deal, which is expected in 2024. In its last TV deal, the Pac-12 inked a 12-year contract with ESPN and Fox in 2011 worth around $3 billion, which at the time was the largest Tier 1 broadcast deal in history.
The Pac-12 has already received multiple bids from private investors of at least $750 million, based on a valuation of $5 billion and up, according to Sports Business Daily. And its plan is to reportedly spend the next couple of months working with The Raine Group, which it hired in January as an investment advisor, to ultimately decide whether to accept one of the offers.
The move is meant to infuse cash into a conference that sent out roughly $31 million to each of its member institutions during the last reported past fiscal year, trailing the SEC payout of $43.7 million and the Big Ten's record $54 million distributed to each school. And if it comes to fruition, it would be a huge boost for conference commissioner Larry Scott, who has received heaps of criticism as the league has struggled to keep pace with other Power 5 conferences on and off the field under his watch.
Under the proposed deal, the Pac-12 would spin off its broadcast rights, sponsorships, distribution agreements and more into a holding company dubbed "Pac-12 NewCo," with the conference retaining managerial control. The private investor(s) would own a minority stake in the holding company and potentially exit by either selling said stake or the Pac-12 taking it public. In the meantime, the investor(s) would be in line to nab a significant payout when the conference strikes its next television deal, which is expected in 2024. In its last TV deal, the Pac-12 inked a 12-year contract with ESPN and Fox in 2011 worth around $3 billion, which at the time was the largest Tier 1 broadcast deal in history.
