More than half of the Big 12 schools have already decided to decline the option for a line of credit up to $30 million as part of the conference’s new deal with RedBird Capital Partners and Weatherford Capital. Texas Tech, Iowa State, and Colorado will not opt in, Front Office Sports has learned, in addition to several previously reported schools.
The deal, which was approved just over a week ago, includes a $12.5 million infusion of capital for the Big 12 at the conference level to be reinvested, a business partnership for RedBird to help source deals for the Big 12, and the credit option that would be between the firms and the schools.
Schools are not required to take the money, but if they do, the Big 12 would withhold a portion of their annual school distribution for the private-equity firms on an annual fixed repayment schedule.
If all schools were to take the deal, RedBird and Weatherford could shell out a total of $500 million. But it looks like that won’t be necessary.
- Texas Tech will decline the credit option, Front Office Sports confirmed Thursday.
- Colorado told FOS in a statement that it “is not opting in” to the credit option. But it added it “supports the Big 12’s agreement with RedBird Capital and Weatherford Capital, and we are confident that this agreement positions the conference and its member institutions for success in the current dynamic environment of college athletics.”
- An Iowa State spokesperson told FOS: “While we are appreciative of the Big 12’s efforts we do not plan to use the line of credit.”
- Baylor, Cincinnati, Houston, TCU, UCF, and West Virginia have all told local news outlets that they will be holding off on the credit line—at least for now.
- Kansas hasn’t yet decided whether it will utilize the credit option.
Representatives for Arizona, Arizona State, BYU, Kansas State, Oklahoma State, and Utah did not immediately respond to a FOS request for comment.
Utah in December struck an investment deal with private-equity firm Otro Capital for managing revenue-generating athletic operations.
PE’s College Push
The Big 12’s pact with RedBird comes as private-equity firms continue to search for more entry points into college sports.
Learfield—a longtime college-sports-focused company that partners with athletic departments to procure sponsorships, media deals, and now NIL opportunities for athletes—last month sold a controlling stake to PE firm TPG in a deal worth about $2 billion.
The Big Ten was close to finalizing a private-capital investment from UC Investments, a pension fund for the University of California system, that would have given UC Investments an ownership stake in Big Ten assets, but the deal fell apart when multiple schools objected.
Editors’ note: RedBird IMI, in which RedBird Capital Partners is a joint venture partner, is the primary investor in Front Office Sports.
