PAC - 12 looking for investors

[CryptoMiner]

i thought their television contract expires in 2024?

It does and that is why they included the one-time renewal fee that is expected that year.

 

[texas_sicilian]

I wouldn't get greedy, but go after the zonas, get back to 12 (so our conference brand make's sense again), and call it a day.

 

[BABYFACE]

Its in the spreadsheet and over 15 years the investors break-even in 2029. A 2% return on their money. Not an attractive offer.

Initial investment of $500 million for 10% interest in NewCo. The initial investment is distributed to the programs.

NPV of cash-flow until 2034 $3,886 and total payout of $7,217. Investors get 10% or $388.6 million NPV. Their valuation uses a growth rate between 2 & 4 percent annually and a one-time payout from ESPN of $386 million upon contract renewal.

So, not really a good investment per se, but rather a novelty or good will investment.

Thanks for the details.

 

[Eight]

It does and that is why they included the one-time renewal fee that is expected that year.

expected, but not guaranteed and in my mind makes the potential return fairly low.

i don't follow these things close enough and i know it is tough to project the sale price of the bonds, but if you wanted to sell $500M in basically unsecured debt based upon what you expect to generate what type of interest would you be look paying on those bonds.

 

[LeagueCityFrog]

Kicking out a member would be a legal nightmare and nearly impossible.

No state school would easily accept an invite if they have another in-state conference peer. Can’t get ASU with Arizona most likely.

This would leave Colorado and Utah as the easiest do leave behind.

Think USC would try to go independent if p12 fell apart.

I think the Big XII bylaws say it takes 80% of the member vote to kick a school out.

 

[BABYFACE]

I think the Big XII bylaws say it takes 80% of the member vote to kick a school out.

That is not happening imo, but I understand what you mean by the process to do so.

 

[WIN]

That is not happening imo, but I understand what you mean by the process to do so.

Don't see baylor getting kicked out, Actually, I could see us voting for them to stay.

 

[Bizarro Frog]

Only thing that would be a negative about brining in AZ, AZ St, Colorado or Utah is they are not in California so they will have to turn their recruiting to TX. We already have enough in-state schools and poachers as it is. Same thing if Nebraska ever decides to come back (unlikely). I think the Big 12 needs to expand but I think ideally it would be schools that have their own regional recruiting.

Just my two cents on the subject.

 

[Eight]

Only thing that would be a negative about brining in AZ, AZ St, Colorado or Utah is they are not in California so they will have to turn their recruiting to TX. We already have enough in-state schools and poachers as it is. Same thing if Nebraska ever decides to come back (unlikely). I think the Big 12 needs to expand but I think ideally it would be schools that have their own regional recruiting.

Just my two cents on the subject.

they already recruit in t exas and why would they stop recruiting california

 

[Bizarro Frog]

they already recruit in t exas and why would they stop recruiting california

I am just guessing their primary recruiting is in Cali. I had heard that Utah and Colorado had to switch recruiting areas to Cali since they were not playing in TX anymore. Not sure if that still holds true.

Either way I hope our conference expands and they put OU in the opposite division from us.

 

[Pharm Frog]

Any investor would be buying low it appears

 

[LeagueCityFrog]

Only thing that would be a negative about brining in AZ, AZ St, Colorado or Utah is they are not in California so they will have to turn their recruiting to TX. We already have enough in-state schools and poachers as it is. Same thing if Nebraska ever decides to come back (unlikely). I think the Big 12 needs to expand but I think ideally it would be schools that have their own regional recruiting.

Just my two cents on the subject.

Let's do it. Beautiful country and would make a continuous land bridge between members. As for recruiting, Texas, OU, and TCU are going to get the recruits they want over those four schools.

 

[NYC Horned Frog]

This would work similarly to public/private partnerships in major public use projects, such as airports. The strategic partner provides the upfront capital for use by the partnership immediately, and the partner is paid out in guaranteed dividends over XX period of time.

The fact that this was leaked, in full, to the Oregonian tells you all you need to know re: how the schools view this idea.

I've heard this is a move driven by USC primarily, supported by Larry Scott who thinks it's the only thing that can keep the conference together.

Truth be told, the Pac 12 has probably been dead/walking for a while now and they just didn't know it. I know I've said this before, but I fully expect the Pac 12 to lose two members and the Big 12 to gain two members over the next several years, with a centralized "Big 12 Network" of some kind coming right behind that. And, it isn't out of the question that one or two other Pac 12 members might jump ship for the Big 10 too... They've been talking quietly for several years.

The only way the Pac 12 moves forward with this investment is if the schools are not forced to re-up into a new grant of rights, which would mean they could take the $$ from the investment and still leave in 2-3 years... Which, as you would expect, would kill any potential of this deal ever happening.

Looks like they're starting to wake up to the fact that they're in serious trouble. This PR route worked out REAL well for Baylor...

Always appreciate your takes, don't you work with the conferences somehow?

 

[Gary's Shirtless Revenge]

Looks like they're starting to wake up to the fact that they're in serious trouble. This PR route worked out REAL well for Baylor...

Always appreciate your takes, don't you work with the conferences somehow?

I work in the media industry, on the business side.

Hiring F-H is about trying to spin the reality of their situation re: stability, very similarly to how the ACC and Big 12 were able to do. They are going to talk a lot about their future as a media entity, investing in tech, top academics, high diverse, future-focused, etc. etc. etc...

But, the reality in big college athletics is that they have fallen behind due to so bad bets, and they are just not performing overall. Winning can cure a lot, they just can't find winners in major sports.

Ultimately, I don't think Larry Scott survives through the end of this FY... But his firing will only further hasten the end of the "Pac 12" as we know it.

Don't get me wrong, they will still be a big valuable conference when this is all done (way bigger and more valuable than the AAC as an example), but still a step or two behind everybody else.

 

[asleep003]

Without more data, it sounds like the PAC12 is punting into a gale, if seriously peddling this Idea.

Everybody east of the Rockies are watching the B10/SEC/B12/ACC matchups all day long and evening (EST/CST), while not likely any interest to turn on a 9:00/10:00P kickoff for a P12 game. So basically 80% of the fan base population is totally tuned out of PST evening games. It's a shame, but little will change that, including major private investment.