Want to buy a stake in the Pac-12 Conference?

[Nueces River Rat 5531]

I know we have some folks on here who have some experience in the private equity markets,  so it would be cool to hear what they have to say.  But it looks like this might be the beginning  of another conference realignment if anything. I don't see how this will work, but again I'd like to hear from some numbers crunchers.  Some of the comments with the story are brutal to put it nicely.   

https://www.oregonlive.com/sports/oregonian/john_canzano/2018/12/want-to-buy-a-stake-in-the-pac-12-conference-its-exploring-taking-on-private-equity-partners.html

[SwanderedTalent 5761]

Without clicking the link, let me posit an assumption: the presence of public California universities in the Pac-12 will prevent this from amounting to anything significant. Those schools are not about to let PE make them do anything they don't want to do and they're a little particular. 

[taybo20 2815]

Seems desperate to me. 

[Boogaloo 268]

Conference needs to be blown up , the elites like your USC , Washington , Oregon’s etc are not being done any favours languishing in it right now and are missing the bus in this new playoff world.

It’s a cliche but college football is better when there is a strong west coast presence mixed in with the southern and northern elites 

[FORTY NINE TO ZERO 2630]

I hope it survives.  College football is better when it is a regional sport.   Too many people are trying to make it a NFL lite 

Edited December 31, 2018 by Xian

[runthebone 7933]

Chip Brown, you sonofabitch 

['stache 21778]

Use some of that LHN money and make it the PAC 12, brought to you by the Texas Longhorns.

[kopp0e 1135]

55 minutes ago, Boogaloo said:

Conference needs to be blown up , the elites like your USC , Washington , Oregon’s etc are not being done any favours languishing in it right now and are missing the bus in this new playoff world.

It’s a cliche but college football is better when there is a strong west coast presence mixed in with the southern and northern elites 

My thought:

Ahem, is it coincidence that a respected reporter of the San Francisco bay area is leaving "trail balloons" over "what if's" as in adding Oklahoma..?
https://twitter.com/wilnerhotline/status/1079166678829654016 It's not coincidence, as there are rumblings of PAC schools (by proxy of 3rd party) talking to XII schools now:

Quote

GREG SW AIM SHOW‏ @GSw aim 23h23 hours ago
Conference realignment sabre rattling begins, as #FightOn, #UCLA, #SunDevils, #BearDown among the #Pac12schools making Commish Larry Scott and other conference members nervous with "quiet early talks" with the #Big12. Schools very concerned about TV deals and the #CFBPlayoff

GREG SWAIM SHOW‏ @GSwaim Dec 17
#B1G wants #KUbball and #Sooners so bad they can taste it, and #Big12 may lose OU while they are busy courting #FightOn, #UCLA, #SunDevils and #BearDown. They don't want the entire Pac12...not a cultural or political fit.

It shows PAC members in a "financial bind" vs that of XII, current earnings: OU $47m./ UT $52m. vs B1G $51m. (per year), so poaching will be to the west...

So this is not a case of the XII being the "weakest link" as thought in years past, but the PAC, who must try to galvanize 12 schools who could be "all out for themselves" soon...
The XII is set to be "poacher" of the PAC, as both Oklahoma & Texas will still be allowed to keep the majority of current regional rivals/ + add markets out west...

And @'stache has a good point, would ESPN see value in placing a PACN with XII brands alongside the upcoming ACCN & dominant SECN, I would argue maybe...

[J.R. Juniors Junior Jr. 1084]

I don't know what PAC 12 Commissioner Larry Scott looks like, but I picture this guy:

imgur

[Hawndoh 2382]

1 hour ago, Xian said:

I hope it survives.  College football is better when it is a regional sport.   Too many people are trying to make it a NFL lite 

It's already NFL lite. At least at the higher levels. With transfer rules making it even easier to be a free agent we are only moving farther into NFL lite territory

[SDG 3319]

If the P12 presidents and AD's can't see that Larry Scott is single handedly driving the conference into the ground then perhaps none of them should be in positions of authority.  

[sushihorn 3233]

5 minutes ago, SDG said:

If the P12 presidents and AD's can't see that Larry Scott is single handedly driving the conference into the ground then perhaps none of them should be in positions of authority.  

I strongly suspect that the P12 presidents have a very different agenda than the ADs.  And the presidents collectively hold the whip hand in that conference.

[J.R. Juniors Junior Jr. 1084]

9 minutes ago, SDG said:

If the P12 presidents and AD's can't see that Larry Scott is single handedly driving the conference into the ground then perhaps none of them should be in positions of authority.  

According to a recent article I read, Scott makes $5M/year, more than all but 1-2 P12 coaches and more than any other conference commissioner--like 2-3 times more than the other P5 commissioners.

Edited December 31, 2018 by J.R. Juniors Junior Jr.

[Doze 1322]

[Hagbard Celine 10772]

Arizona, Colorado, Kansas, 0u, Texas, Utah

Cal, Oregon, Stanford, UCLA, USC, Washington

I would put $500m in to that, but for 51%, not 10%.

[LTtxfan 49016]

Don't get involved with any Conference agreement that includes California...... that state's financial system is broken and will take any partners it has down with it. 

Unfortunately, "The State of California" is a federal bailout waiting to happen.....

[Soldierhorn 206]

11 minutes ago, LTtxfan said:

Don't get involved with any Conference agreement that includes California...... that state's financial system is broken and will take any partners it has down with it. 

Unfortunately, "The State of California" is a federal bailout waiting to happen.....

BUILD THAT WALL...around California

[Oakbrook 67]

Oh crap. Not this crap again.  We can’t wait a couple of days for the off season?

1 hour ago, Hawndoh said:

It's already NFL lite. At least at the higher levels. With transfer rules making it even easier to be a free agent we are only moving farther into NFL lite territory

And this is not a good thing.

 

[SimkinsMan 4349]

39 minutes ago, LTtxfan said:

Don't get involved with any Conference agreement that includes California...... that state's financial system is broken and will take any partners it has down with it. 

Unfortunately, "The State of California" is a federal bailout waiting to happen.....

Not to go all corral, but California's budget is arguably in better shape than Texas'. The state has become cash-flow positive and is building a significant rainy day fund for future problems.

https://www.ppic.org/publication/californias-state-budget/

[sushihorn 3233]

20 minutes ago, SimkinsMan said:

Not to go all corral, but California's budget is arguably in better shape than Texas'. The state has become cash-flow positive and is building a significant rainy day fund for future problems.

https://www.ppic.org/publication/californias-state-budget/

Because of tech and real estate, Cali is probably the biggest beneficiary of financial bubbles.  And I guarantee you that they look a TON worse once you account for pension liabilities.  A big problem is that the state government is about as detached from reality as the heads of the schools are WRT to football.

[CfRhTxStBobcats 600]

I bought a steak in a pac 12 city earlier this year so this hits really close to home.

Edited December 31, 2018 by CfRhTxStBobcats

[LTtxfan 49016]

3 hours ago, SimkinsMan said:

Not to go all corral, but California's budget is arguably in better shape than Texas'. The state has become cash-flow positive and is building a significant rainy day fund for future problems.

https://www.ppic.org/publication/californias-state-budget/

The following is not a comment on SimkinsMan...

Info in Link is political hogwash..... "FAKE NEWS"

Edited December 31, 2018 by LTtxfan

[kopp0e 1135]

5 hours ago, sushihorn said:

I strongly suspect that the P12 presidents have a very different agenda than the ADs.  And the presidents collectively hold the whip hand in that conference.

If there's a school in the PAC that would "rattle the sabres", it's USC, which was reluctant to sign for the PACN, as the school could have made more on a LHN type deal...
Just as much as Texas & Oklahoma have looked west in the past (at least) 2010/2011, it can be argued that USC & UCLA have been looking east; since (at least) 1978:

Quote

40 years ago, the Arizona schools joined the Pac-8: An insider's ...

https://www.mercurynews.com/.../40-years-ago-the-arizona-schools-joined-the-pac-8-...
Aug 29, 2018 - USC would announce instead of Pac-8 expanding with invitation to UA and ASU, instead providing public notice that it would be withdrawing immediately as a member of the Pac-8. ... “What should we do, if Jack does this?” ... J.D. replied without a moment’s hesitation, “Chuck, you will stand next to Jack Hubbard and say that UCLA is joining USC in withdrawing from the Pac-8 also.”

The markets of the top 50 largest cities in both population & media market size, would favor the new joint league of XII & PAC brands...

Quote

*50 largest cities in America, by population/ #50 largest cities in America, by media market [per Wikipedia]:
ACC _ Atlantic Coast Conference/ B1G _ Big Ten Conference/ SEC _ Southeastern Conference/ PX6 _ Pacific 12 Conference (PAC)/ Big XII Conference (XII)...

*1 New York ACC/B1G & New York (#1) ACC/B1G
*2 Los Angeles PX6 & Los Angeles (#2) PX6
*3 Chicago ACC/B1G & Chicago (#3) ACC/B1G
*4 Houston PX6/SEC & Philadelphia (#4) ACC/B1G
*5 Phoenix PX6 & Dallas-Fort Worth (#5) PX6/SEC
*6 Philadelphia ACC/B1G & Washington, D.C. (Hagerstown) (#6) ACC/B1G
*7 San Antonio PX6/SEC & Houston (#7) PX6/SEC
*8 San Diego PX6 & San Francisco-Oakland-San Jose (#8) PX6
*9 Dallas PX6/SEC & Boston (Manchester) (#9) ACC
10 San Jose PX6 & Atlanta (#10) ACC/SEC
11 Austin PX6/SEC & Tampa-St. Petersburg (Sarasota) (#11) ACC/SEC
12 Jacksonville ACC/SEC & Phoenix (Prescott) (#12) PX6
13 San Francisco PX6 & Seattle-Tacoma (#13) PX6
14 Columbus B1G & Detroit (#14) B1G
15 Fort Worth PX6/SEC & Minneapolis-St. Paul (#15) B1G
16 Indianapolis ACC/B1G & Miami-Fort Lauderdale (#16) ACC/SEC
17 Charlotte ACC & Denver (#17) PX6
18 Seattle PX6 & Orlando-Daytona Beach-Melbourne (#18) ACC/SEC
19 Denver PX6 & Cleveland-Akron (Canton) (#19) B1G
20 Washington ACC/B1G & Sacramento-Stockton-Modesto (#20) PX6
21 Boston ACC & St. Louis (#21) SEC/B1G
22 El Paso PX6/SEC & Portland, OR (#22) PX6
23 Detroit B1G & Charlotte (#23) ACC
24 Nashville SEC & Pittsburgh (#24) ACC/B1G
25 Memphis SEC & Raleigh-Durham (Fayetteville) (#25) ACC
26 Portland PX6 & Baltimore (#26) ACC/SEC
27 Oklahoma City PX6 & Nashville (#27) SEC
28 Las Vegas MWC/PX6 & Indianapolis (#28) ACC/B1G
29 Louisville ACC & San Diego (#29) PX6
30 Baltimore ACC/B1G & Salt Lake City (#30) PX6
31 Milwaukee B1G & San Antonio (#31) PX6/SEC
32 Albuquerque MWC & Kansas City (#32) PX6/SEC
33 Tucson PX6 & Hartford & New Haven (#33) ACC/B1G
34 Fresno PX6 & Columbus, OH (#34) B1G
35 Sacramento PX6 & Cincinnati (#35) B1G/SEC
36 Mesa PX6 & Milwaukee (#36) B1G
37 Kansas City PX6/SEC & West Palm Beach-Fort Pierce (#37) ACC/SEC
38 Atlanta ACC/SEC & Greenville-Spartanburg-Asheville-Anderson (#38) ACC
39 Long Beach PX6 & Las Vegas (#39) MWC/PX6
40 Omaha B1G & Austin (#40) PX6/SEC
41 Raleigh ACC & Harrisburg-Lancaster-Lebanon-York (#41) ACC
42 Colorado Springs PX6 & Jacksonville (#42) ACC/SEC
43 Miami ACC/SEC & Birmingham (Anniston and Tuscaloosa) (#43) SEC
44 Virginia Beach ACC/B1G & Norfolk-Portsmouth-Newport News (#44) ACC/B1G
45 Oakland PX6 & Oklahoma City (#45) PX6
46 Minneapolis B1G & Greensboro-High Point-Winston-Salem (#46) ACC
47 Tulsa PX6 & Albuquerque-Santa Fe (#47) MWC
48 Arlington PX6/SEC & Louisville (#48) ACC/SEC
49 New Orleans SEC & Grand Rapids-Kalamazoo-Battle Creek (#49) B1G
50 Wichita PX6 & New Orleans (#50) SEC

For the record, currently a PAC-XII (PX6) has 27 of top 50 largest cities/ 16 of top 50 media markets; in regions still growing... (vs B1G 11 cities/ 16 media)...

[GHOSTUSER 361]

5 hours ago, Soldierhorn said:

BUILD THAT WALL...around California

Keep this shit in the Cloak Room.

[ButtFumble 5161]

$500 million for 10% so putting a $5 billion dollar valuation on a "business" that has profits of at most $24 million per year (it pays less than $2 million per team)

that is sound business finance there

even if the 10% owner took 100% of the profits and left nothing for the member schools they would be getting a 5% return every year....well until carriage goes to shit and that is leaving NOTHING for the conference members every year I guess they can take that $41 million each from the sales windfall and be content with never getting another PAC12n distribution ever

which makes the 90% they own pretty much worthless at that point......and yea what business sells only 10% and gives that 10% investor 100% of the profits and really what would prevent that 90% owner from trying to change things in the future as the 90% owner

sounds like an investment for tilman fertita to get UH in the PAC 12.....and yes their fan forum already has that thread