Michigan threatens to leave B2G

[Frank Lee]

Everyone is so cynical. Think of how much tuition could be reduced from all the new revenue.

Everybody's chasing the money. Administrators, coaches, players, faculty, contractors. On the research side, milk is now pasteurized and homogenized, cars don't break down as much, roads don't need repaving, Tylenol has been invented, and $200 drones can take out $10m tanks. So all kinds of cool and useful stuff coming out of universities helping humanity. So, there is no reason to be cynical.

 

[Dailybuck777]

Every one of these programs has revenue growth aspirations. Like any company looking to grow, sometimes you need capital to do so. PSU is in the middle of a $700M stadium upgrade that is not fully funded. PSU believes that up upgrade will ultimately improve PSU's financial position through football success and expanded utilization (ie concerts, events, etc).
IDK about OSU or UM, but I have to believe they could utilize cash infusions to grow/improve some aspect of the operation.

If PSU needs the money to help upgrade the stadium, there is some utility for it for PSU.

 

[Delco Lion]

I appreciate your perspective and knowledge. However, what could private equity add to Ohio State, Penn State Or Michigan? All they want is a cut of the future revenues for what I am assuming is an upfront payment. I did read a Wall Street Journal article and it stated that OSU was undecided on the proposal.

I don’t have the answer for that, this is much different than anything I’ve been around. I can clearly picture the vision and endgame for most private equity acquisitions, but this would be so different. I guess a question I might have is, why work with a private equity firm versus an entertainment company or other media company with a proven track record? There also might even be a better deal out there? Maybe the big 10 needs to put this package deal out to bid? Curious who really put this deal together? Who is driving the bus?

 

[Frank Lee]

"Private equity is the purest expression of this new creed. Its tools—leverage, optimization, and exit—belong to a world where time has been conquered and consequence deferred. Businesses once built to last are now built to sell. The craftsman’s slow accumulation of goodwill is replaced by the manager’s quick extraction of yield."

The Illusion Of Progress & The Pursuit Of 'More' | ZeroHedge

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