Private equity looks to buy in to college sports
Irwin Kishner, co-chair of Herrick's Sports Law Group, spoke with CNBC Sport about private equity and venture capital's increased interest in investing in college sports.
The article noted that college athletic programs are more lucrative than ever, and that "football generates roughly 75% of athletic program revenue at typical Power 4 schools, which include the ACC, Big Ten, Big 12 and SEC conferences." The article further notes that the SEC "dominates the college football ratings," which could lead it to entering into the richest television deal when its current agreement expires.
"The SEC is almost a super-conference and, because of its football teams, owns the most valuable content in college sports," said Irwin.
The article highlighted that there "is also the belief that the business acumen from outside investors could drive profits even higher."
"There’s a big opportunity to drive EBITDA [earnings before interest, taxes, depreciation and amortization] higher in college sports because there are easy ways to maintain quality while reducing expenses," explained Irwin.
The article concludes that while private equity is complicated, there is a growing belief that it will eventually be investing in college athletic programs.