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Texas Recruiting Notes 2022 - Idiotic Slapfights Unrelated To 2022 Recruiting

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closetojumping
closetojumping

Thanks. I have been on the boards since 1997 when I was a student at Texas. We've spent decades as fans and board patrons feeling powerless to create any real change. The Internet, social media,

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ChonkySalmon666
ChonkySalmon666

I work closely with a certain previously committed 5 star QB's father (hint: its Quinn Ewers, for those who haven't been following recruiting closely like I have) and chatted with him a bit this after

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HtownHorn

HtownHorn 14752

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3 hours ago, Schulz2.0 said:

247 is butthurt about On3 taking a bunch of 247's talent.

I wonder at what point the execs stop creating new companies, sell to bigger companies that gives two shits about recruiting and going to start another company. This is the 3rd iteration for Burton and Terry.

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Thiefery

Thiefery 5015

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23 minutes ago, HtownHorn said:

I wonder at what point the execs stop creating new companies, sell to bigger companies that gives two shits about recruiting and going to start another company. This is the 3rd iteration for Burton and Terry.

sounds like there's companies that still want to dip their toe and buy startups like on3, can't hate on it.  But as for now, they have a really good staff.  I'm surprised with Bobby.  He's making daily vids about UT football, can't complain.

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Thiefery

Thiefery 5015

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6 minutes ago, Coelenterate Fuccboi said:

I think there are some that might disagree. If not, it doesn’t concern me. You went out of your way to make yourself a target of my affection.

Like you as a poster, just wanted to say.. I miss Casual Encounter name tho :(..  Maybe I can convince you to change back next season at the opener with Shriner salt and lime beers?

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Coelenterate Fuccboi

Coelenterate Fuccboi 13119

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1 minute ago, Thiefery said:

Like you as a poster, just wanted to say.. I miss Casual Encounter name tho :(..  Maybe I can convince you to change back next season at the opener with Shriner salt and lime beers?

Unfortunately, I’ll likely still be living on the other side of the world at that point. Although, if Asia continues with its COVID restriction insanity, I’m not sure if I’ll be able to take it much longer. I’ve taken 13 swab tests in the past two weeks because of one business trip and get to start the process all over again this weekend.

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taybo20

taybo20 2878

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9 minutes ago, Coelenterate Fuccboi said:

Unfortunately, I’ll likely still be living on the other side of the world at that point. Although, if Asia continues with its COVID restriction insanity, I’m not sure if I’ll be able to take it much longer. I’ve taken 13 swab tests in the past two weeks because of one business trip and get to start the process all over again this weekend.

I work a job where I’ve been testing 3 times minimum per week since sept 2020…. And not once have I tested positive. I’m not sure my nose even feels it anymore. But I am certainly over it.

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NoName

NoName 16363

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9 hours ago, HtownHorn said:

I wonder at what point the execs stop creating new companies, sell to bigger companies that gives two shits about recruiting and going to start another company. This is the 3rd iteration for Burton and Terry.

when they stop making $Texas selling them.

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Terry, a Nashville native and Lipscomb University graduate, created both Rivals.com, which he sold to Yahoo! for nearly $100 million in 2007, and 247Sports, which he sold to CBS for an undisclosed amount in 2015. 

 

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Fud

Fud 9552

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29 minutes ago, NoName said:

Terry, a Nashville native and Lipscomb University graduate, created both Rivals.com, which he sold to Yahoo! for nearly $100 million in 2007, and 247Sports, which he sold to CBS for an undisclosed amount in 2015. 

Shouldn't that be a publicly available number?

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closetojumping

closetojumping 62763

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44 minutes ago, Fud said:

Shouldn't that be a publicly available number?

Not if the number isn’t material to the buyer’s bottom line and they don’t wish to disclose it. I don’t know what kind of numbers CBS put up in the purchase year, but I’m guessing they could make anything up to a quarter of a billion dollars look immaterial. 

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Enchubben

Enchubben 5510

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6 minutes ago, closetojumping said:

Not if the number isn’t material to the buyer’s bottom line and they don’t wish to disclose it. I don’t know what kind of numbers CBS put up in the purchase year, but I’m guessing they could make anything up to a quarter of a billion dollars look immaterial. 

It’s not material. We’re talking assets of $20B or more for CBS. They don’t have to report details, though I suppose you could try to back into that number via financials but it would be a guess.  I’m guessing $150M - $200M ish back of envelope.

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TheAuditor

TheAuditor 1038

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37 minutes ago, Enchubben said:

It’s not material. We’re talking assets of $20B or more for CBS. They don’t have to report details, though I suppose you could try to back into that number via financials but it would be a guess.  I’m guessing $150M - $200M ish back of envelope.

Lots of ways to calculate materiality (revenue, assets, gross profit, net profit).  Here's one way to look at it:  materiality is generally between 5-10% net profit,   2015 CBS net income was 1.4B,  so 140m could be argued immaterial,  anything less than 70 would be immaterial.   However,  the news article on the acquisition does say the annual revenue of 247 sports was 15M.  While MA multiple were high that year (12-15x in elevated industries) it's unlikely that 247 had 10+m in EBITDA.  I would guess not more that 25% of Revenue(which is high),  so think 3.75M max EBITDA at max MA rate (15) puts likely sale price high end likely at 56M. 

TLDR:  CTJ and Enchubben are correct and price was likely well below 100M.  

 

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SydneyCarton

SydneyCarton 48124

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3 minutes ago, TheAuditor said:

Lots of ways to calculate materiality (revenue, assets, gross profit, net profit).  Here's one way to look at it:  materiality is generally between 5-10% net profit,   2015 CBS net income was 1.4B,  so 140m could be argued immaterial,  anything less than 70 would be immaterial.   However,  the news article on the acquisition does say the annual revenue of 247 sports was 15M.  While MA multiple were high that year (12-15x in elevated industries) it's unlikely that 247 had 10+m in EBITDA.  I would guess not more that 25% of Revenue(which is high),  so think 3.75M max EBITDA at max MA rate (15) puts likely sale price high end likely at 56M. 

TLDR:  CTJ and Enchubben are correct and price was likely well below 100M.  

 

I see that User Name, sir. 

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closetojumping

closetojumping 62763

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43 minutes ago, TheAuditor said:

Lots of ways to calculate materiality (revenue, assets, gross profit, net profit).  Here's one way to look at it:  materiality is generally between 5-10% net profit,   2015 CBS net income was 1.4B,  so 140m could be argued immaterial,  anything less than 70 would be immaterial.   However,  the news article on the acquisition does say the annual revenue of 247 sports was 15M.  While MA multiple were high that year (12-15x in elevated industries) it's unlikely that 247 had 10+m in EBITDA.  I would guess not more that 25% of Revenue(which is high),  so think 3.75M max EBITDA at max MA rate (15) puts likely sale price high end likely at 56M. 

TLDR:  CTJ and Enchubben are correct and price was likely well below 100M.  

 

I think you're (not purposefully) understating their EBITDA at time of sale by a little over $2million. It was also viewed on the CBS side as strategic per friends involved tangentially with 247 at the time. I'm betting somewhere between $90-$110, which they'd still argue credibly as immaterial, to your point. 

I've been a part of a few exits that were all immaterial to the buying behemoth but very material to the sell side. One of them was viewed as cornerstone strategic to a new CEO's transformational vision, so they disclosed a bunch of shit they didn't have to and the stock got a nice bump for the day that the dealmakers took credit for, so that's my csb for the day.

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Keef

Keef 771

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I quickly searched and didn't see an 8-K on the acquisition and/or see the merger agreement publicly.  Not smart enough to understand the strategy behind taking the position the acquisition wasn't material, but I've seen behemoths file 8-K's on $100M acquisitions before.  I'd guess that the business sold for lower than the parties wanted to advertise (could be totally wrong).  But shout-out to Shannon and Bobby for negotiating deals where they could flip the same business three times using the same people.

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Horn Under a Bad Sign

Horn Under a Bad Sign 20458

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25 minutes ago, Keef said:

I quickly searched and didn't see an 8-K on the acquisition and/or see the merger agreement publicly.  Not smart enough to understand the strategy behind taking the position the acquisition wasn't material, but I've seen behemoths file 8-K's on $100M acquisitions before.  I'd guess that the business sold for lower than the parties wanted to advertise (could be totally wrong).  But shout-out to Shannon and Bobby for negotiating deals where they could flip the same business three times using the same people.

 

2 hours ago, closetojumping said:

I think you're (not purposefully) understating their EBITDA at time of sale by a little over $2million. It was also viewed on the CBS side as strategic per friends involved tangentially with 247 at the time. I'm betting somewhere between $90-$110, which they'd still argue credibly as immaterial, to your point. 

I've been a part of a few exits that were all immaterial to the buying behemoth but very material to the sell side. One of them was viewed as cornerstone strategic to a new CEO's transformational vision, so they disclosed a bunch of shit they didn't have to and the stock got a nice bump for the day that the dealmakers took credit for, so that's my csb for the day.

 

3 hours ago, Professor Chesney said:

Yes, but what if you’re underestimating their Community Adjusted EBITDA?

 

3 hours ago, TheAuditor said:

Lots of ways to calculate materiality (revenue, assets, gross profit, net profit).  Here's one way to look at it:  materiality is generally between 5-10% net profit,   2015 CBS net income was 1.4B,  so 140m could be argued immaterial,  anything less than 70 would be immaterial.   However,  the news article on the acquisition does say the annual revenue of 247 sports was 15M.  While MA multiple were high that year (12-15x in elevated industries) it's unlikely that 247 had 10+m in EBITDA.  I would guess not more that 25% of Revenue(which is high),  so think 3.75M max EBITDA at max MA rate (15) puts likely sale price high end likely at 56M. 

TLDR:  CTJ and Enchubben are correct and price was likely well below 100M.  

 




 

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Big Woodrows

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5 hours ago, TheAuditor said:

Lots of ways to calculate materiality (revenue, assets, gross profit, net profit).  Here's one way to look at it:  materiality is generally between 5-10% net profit,   2015 CBS net income was 1.4B,  so 140m could be argued immaterial,  anything less than 70 would be immaterial.   However,  the news article on the acquisition does say the annual revenue of 247 sports was 15M.  While MA multiple were high that year (12-15x in elevated industries) it's unlikely that 247 had 10+m in EBITDA.  I would guess not more that 25% of Revenue(which is high),  so think 3.75M max EBITDA at max MA rate (15) puts likely sale price high end likely at 56M. 

TLDR:  CTJ and Enchubben are correct and price was likely well below 100M.  

 

CPAs tap in

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Gut Wagon

Gut Wagon 8083

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14 minutes ago, Bevo14 said:

Call me crazy but I could see 3 true freshmen starting on OL next year unless they land a good transfer. 

Maybe by our bowl game, what with a couple upperclassmen opting out to prep for the draft and two other 2021 starters out with injuries. 🙄

Kidding about the opt-outs, of course. 

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WinningIsHard

WinningIsHard 4051

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Every time I’m pretty certain I understand surly…boom…curveball. The OL players we have who got their asses whipped by Kansas should start over two of the highest rated OL we have ever recruited because freshman aren’t ready. So we sell playing time over the trash we have but as soon as they sign we tell them we meant playing time in a couple years? L O L 

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TheAuditor

TheAuditor 1038

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7 hours ago, closetojumping said:

I think you're (not purposefully) understating their EBITDA at time of sale by a little over $2million. It was also viewed on the CBS side as strategic per friends involved tangentially with 247 at the time. I'm betting somewhere between $90-$110, which they'd still argue credibly as immaterial, to your point. 

I've been a part of a few exits that were all immaterial to the buying behemoth but very material to the sell side. One of them was viewed as cornerstone strategic to a new CEO's transformational vision, so they disclosed a bunch of shit they didn't have to and the stock got a nice bump for the day that the dealmakers took credit for, so that's my csb for the day.

Yep.  it was totally a guess from the outside.  Strategic deals can always raise the price point,  especially if there are other suitors as you no doubt know.  Also depends on strings/commitment to the buyer from the seller which in a people business like that is critical to value continuation/realization. BTW,  ~6M Ebitda on 15M revenue is salty!  congrats to those folks.  

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Funk Doctor Spock

Funk Doctor Spock 12441

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On 12/27/2021 at 2:02 PM, Codaxx said:

That is interesting. I dont know where Overshown realistically fits. I could see him being a higher level athlete playing SS in the same vain as Kam Chancelor played the position, which is sort of a pseudo LB. The only issue is that position has been fading away over the years. He has the athletic ability to play LB and do it at a high level, but he just has not shown any feel for the position. He is great in the see ball, find ball mode, but throw in any misdirection at all and he is completely lost. 

Fify

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