More than half of Big 12 schools say they are declining 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, Colorado, Kansas State, and Arizona will not opt in, Front Office Sports learned Thursday, 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 for each individual school.
As of now, the window to accept the credit line will be open for one year. 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 would shell out a total of $500 million.
- Texas Tech will decline the credit option, FOS 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.”
- Iowa State told FOS in a statement: “While we are appreciative of the Big 12’s efforts we do not plan to use the line of credit.”
- Kansas State told FOS the school “does not plan to utilize” the credit option.
- Arizona told FOS in a statement: “We appreciate the Big 12 Conference’s innovative commitment to supporting its member institutions and student-athletes in a dynamic and evolving environment. After careful consideration, we have decided that University of Arizona will not pursue the optional institutional capital opportunity.”
- West Virginia told FOS in a statement, “West Virginia will not be participating at this time. That was a decision made together by AD Wren Baker, President Michael Benson and our Board of Governors. There is no additional context I have to pass on other than confirming to you that we will not participate.”
- UCF told FOS in a statement, “UCF supports the Big 12’s new business development partnership with RedBird Capital and the opportunities it creates across the conference. This is a forward-thinking, proactive approach that will help drive future revenue growth. UCF Athletics will not exercise the one-time credit option.”
- Cincinnati told FOS, “We appreciate the Big 12’s continued focus on innovation and identifying creative ways to generate new revenue opportunities for the conference and its member institutions. At this time, Cincinnati does not plan to utilize the investment credit option made available.”
- Baylor, Houston, Oklahoma State, BYU, and TCU all told local news outlets they will be holding off on the credit line—at least for now. The schools confirmed to FOS the reporting by local outlets.
- Kansas says it hasn’t yet decided whether it will utilize the credit option.
- Utah declined to comment.
Representatives for Arizona State 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.
A RedBird spokesperson sent the following statement to FOS: “This partnership is much bigger than just capital to schools—it’s a commercial partnership where RedBird and Weatherford are delivering commercial revenue to the Big 12. We are playing the long game where schools have one year to opt in for when the landscape becomes clearer for the ecosystem and individual needs. It’s not intended to be a one-time offer, it’s a long-term feature of a broader agreement for the Big 12 and their member schools.”
The Big 12 declined to comment when reached by FOS.
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.
