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LAS VEGAS — ACC Commissioner Jim Phillips doesn’t think private equity is the bogeyman.
Speaking during the SBJ Intercollegiate Athletic Forum in Las Vegas on Wednesday, Phillips indicated that the conference was still open to taking on a private-equity investment at some point, even if he doesn’t see a clear path now.
“We have had multiple conversations with a variety of PE folks and banking folks,” Phillips said. “It’s necessary for us not to just kind of push this aside because it’s not applicable right now.”
Phillips’ comments came just one day after the announcement of the first university athletic department PE deal between Utah and Otro Capital—which was a hot topic during the conference.
“I think the challenges are being, when you have 16 or 18 schools, does it fit all schools, sizes, where they’re at, what their endowment is, all those things,” Phillips said. “But I’m excited about going with that, considering that every day there’s new information in that space.”
In fact, the Big Ten recently ran up against those challenges while trying to get a conference-wide private capital deal with UC Investments over the line this past fall. While many schools in the conference were in favor of the deal, a few were opposed—including Michigan and USC. It’s no coincidence that the schools against the proposal weren’t as cash-strapped as those who supported it.
Phillips’ comments echo those he made this past summer during an interview with Front Office Sports. “Our group is very educated about it, and there just hasn’t been anything that really has made sense for the ACC, similar to others,” Phillips said at the time. “It’s good for us to continue to think broadly and openly and progressively in all of that, including private equity and revenue. If you ever got to a place where it made sense, I’m sure somebody would do that.”
But after the Utah deal was announced, Phillips appeared to take a slightly rosier view. “If people are coming to you to try to help you, you should listen.”
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