Menu
Download the app

SBJ subscribers – Enhance your experience with the revamped iOS app

Colleges

Pac-12 Seeking $750M Investment For Schools, TV Networks

The Pac-12 has faced criticism given the networks' underperformance and the lack of on-field successGETTY IMAGES

The Pac-12 is seeking $750M from investors, considerably more than the $500M it originally discussed four months ago, according to multiple sources. The conference will distribute $700M of that investment to its 12 schools. The other $50M will go into a new entity to manage the conference’s media rights and networks. The breakdown is detailed in official bid books that the conference sent to potential investors in recent days. The bid book, which is more than 70 pages, identifies the Pac-12 media holding company as NewCo, which includes all the conference’s media rights and the Pac-12 Networks. NewCo reported an EBITDA of $286M last year, according to the bid book. The book does not outline a timetable to complete a deal, but sources indicated the process will unfold over the coming weeks. The Pac-12 did not comment.

TOUGH TIMES: The Pac-12’s attempt to attract investors is unprecedented in college athletics and represents a bold step by Commissioner Larry Scott to create more revenue for the schools. The conference is facing considerable headwinds given the underperformance of the networks combined with the lack of on-field success. The conference’s competitive landscape has dropped so far that the Wall Street Journal headlined a March 13 story as “The Worst Pac-12 Season Ever.” Conference officials hope that finding the right strategic partner and getting an infusion of cash will reverse those trends. Scott has said that his primary motivation is to identify a strategic partner that could help with monetization of its media rights and distribution of the Pac-12 Networks. His secondary motivation is an infusion of cash for the schools, who have fallen behind their Power Five brethren, financially and competitively.

Among the details outlined in the bid book, according to sources:

  • Investors are required to make a 25-year commitment.
  • A minimum investment of $100M is required for individuals in an investment group.
  • Investments are expected to be paid up front. The Pac-12’s book did not detail a specific rate of return. The investor would own a share of NewCo to be determined and participate in the profits as an equity investor. The expectation, sources said, is that NewCo eventually would be sold and the investor would benefit, but there are no guarantees.
  • Terms of an investment could vary from one investor to another depending on the value the investor brings as a strategic partner.
  • The Pac-12’s media-rights deal with ESPN and Fox Sports is worth $3B over 12 years and expires in ‘23-24. 

The Raine Group is working with the Pac-12 on the new model.

SBJ Morning Buzzcast: March 25, 2024

NFL meeting preview; MLB's opening week ad effort and remembering Peter Angelos.

Big Get Jay Wright, March Madness is upon us and ESPN locks up CFP

On this week’s pod, our Big Get is CBS Sports college basketball analyst Jay Wright. The NCAA Championship-winning coach shares his insight with SBJ’s Austin Karp on key hoops issues and why being well dressed is an important part of his success. Also on the show, Poynter Institute senior writer Tom Jones shares who he has up and who is down in sports media. Later, SBJ’s Ben Portnoy talks the latest on ESPN’s CFP extension and who CBS, TNT Sports and ESPN need to make deep runs in the men’s and women's NCAA basketball tournaments.

SBJ I Factor: Nana-Yaw Asamoah

SBJ I Factor features an interview with AMB Sports and Entertainment Chief Commercial Office Nana-Yaw Asamoah. Asamoah, who moved over to AMBSE last year after 14 years at the NFL, talks with SBJ’s Ben Fischer about how his role model parents and older sisters pushed him to shrive, how the power of lifelong learning fuels successful people, and why AMBSE was an opportunity he could not pass up. Asamoah is 2021 SBJ Forty Under 40 honoree. SBJ I Factor is a monthly podcast offering interviews with sports executives who have been recipients of one of the magazine’s awards.

Shareable URL copied to clipboard!

https://www.sportsbusinessjournal.com/Daily/Issues/2019/03/21/Colleges/Pac-12.aspx

Sorry, something went wrong with the copy but here is the link for you.

https://www.sportsbusinessjournal.com/Daily/Issues/2019/03/21/Colleges/Pac-12.aspx

CLOSE