Big 12 Nearing Deal with RedBird, Weatherford Capital for Nearly $500 million
The Big 12 is closing in on an agreement with RedBird and Weatherford Capital that would give member schools access to a major capital infusion, Yahoo’s Ross Dellenger reported on Friday evening.
The agreement would potentially total up to $500 million if every school opts in. Big 12 presidents and chancellors have authorized commissioner Brett Yormark to take another step toward finalizing a credit-style deal, with a final decision expected in the coming weeks once the long-form agreements are completed. Sources told Yahoo Sports the conference would not give up any stake or equity as part of the arrangement.
The proposal is structured as a three-part package. First, RedBird would provide an initial cash investment into the Big 12 conference office to help expand revenue-generating commercial operations. Second, the firms would offer an optional capital credit line of roughly $30 million per school at a reduced rate, with no requirement for schools to participate. Third, the Big 12 would enter a broader strategic business partnership with RedBird and Weatherford aimed at professionalizing the conference office, growing new revenue streams, and identifying additional investment opportunities inside and outside college athletics.
“The Big 12 Conference is in negotiations to create a multifaceted strategic business partnership with RedBird and Weatherford Capital that will focus on growing the commercial operations of the Big 12, while also providing an opt-in capital solution for our member institutions to take advantage of up to $500 million of capital.
“RedBird will also work with the Conference to identify complementary investment opportunities inside and outside of the collegiate athletics ecosystem that will create new revenue streams and long-term asset appreciation. To date, the RedBird ecosystem has delivered over $145 million of contracted revenue to the Big 12 and its member institutions. This partnership would provide the Conference with a world-class strategic and capital partner, while preserving 100% of the member institutions' equity in the Big 12.”
The deal would become the first publicized, conference-wide capital agreement in major college sports and comes as schools face increasing financial pressure from expanding budgets, athlete compensation, and rising coaching salaries. It also lands as more programs explore private capital solutions, including Utah’s recent equity agreement with Otro Capital, which would not be impacted by the Big 12’s deal.
