As the Big Ten looks to keep expanding, some in the industry are reportedly concerned about the Pac-12’s sustainability. 

After announcing the addition of USC and UCLA to the Big Ten, commissioner Kevin Warren is looking to add a new media rights deal to the conference’s seven-year, $8 billion deal it struck in August, which is expected to payout an annual $75 million to each school.

Should an offer be significant enough — it’s believed to be less than $100 million annually — it is speculated that the Big Ten’s presidents would see the value in also adding four more Pac-12 schools: California, Oregon, Stanford, and Washington. 

That would leave only six schools in the Pac-12 — which could then dwindle down to two and collapse.

“If that [Big Ten move] happens, I think the other [four Pac-12] schools will want to jump to our league,” a Big 12 source told CBS Sports. 

Outlets reported earlier in the year that Arizona, Arizona State, Colorado, and Utah were in discussions to join the Big 12. Commissioner Brett Yormark told reporters he is interested in expanding west, ”entering that fourth time zone.”

• The Big 12’s current media deal extends until 2025. 
• The conference is losing Texas and Oklahoma but is adding Cincinnati, UCF, Houston, and BYU in 2023. 

Down But Not Out

The Pac-12 is trying to stay intact. Commissioner George Kliavkoff previously said the conference started media rights negotiations earlier than expected.

Its current deal ends in 2024.

Porsche held on to its lofty valuation on its first day as a public company.

The Volkswagen-owned luxury car brand debuted at a valuation of $73.3 billion on the Frankfurt stock exchange. Shares initially rose in the hours following the debut before finishing the day essentially flat.

• The initial public offering, which raised more than $9 billion, was Europe’s largest in over a decade.
• Demand for shares was so high that nearly half the orders placed by investors were unfulfilled due to lack of supply.
• Volkswagen retained a 75% stake in the company.

The listing seeks to defy a recent trend in newly public companies: Around 87% of companies that went public in 2021 have fallen below their initial prices.

Getting On Track

It remains to be seen if the public listing will help Porsche with another lofty goal: joining Formula 1. The company appeared to have a deal in place to purchase half of the Red Bull racing team, but the latter scuttled that deal.

Porsche is still looking for a partner to join F1 in 2026. 

New regulations are pushing F1 cars toward 100% sustainable fuels and engines that use 50% electric power by that year, aligning its goals with those of Porsche, which is expected to use some of the proceeds from the IPO to continue its push into electric vehicles.

Athletes Unlimited, the multi-sport women’s league launched in 2020, has completed its first outside capital raise.

The company announced a $30 million funding round on Thursday that included Kevin Durant’s 35V, David Blitzer, and Angela Ruggiero. 

Athletes Unlimited began with a softball league in 2020 and ballooned to run women’s volleyball, lacrosse, and basketball leagues. Instead of having set teams, players rotate for each competition, earning individual points.

The company has grown in popularity. 

• AU most recently signed a media deal with ESPN for softball and lacrosse. 
• It boasts major sponsors like Nike and GEICO. 
• It has a star-studded list of advisors, including Durant, Rich Kleiman, Jessica Mendoza, Taylor Rooks, and Abby Wambach.
• Each sport has drawn top athletes —  its basketball league featured Lexie Brown, Natasha Cloud, and Courtney Williams in its inaugural season. 

The league provides players with decent salaries given the short seasons — it planned to offer 44 women’s basketball players more than $1 million in aggregate, or an average of $20,000 per person. 

Room For Growth

Athletes Unlimited, a designated Public Benefit Corporation, seeks investors aligned with its athlete-oriented ethos.

“These investors share our vision and our ambition to not only reimagine professional sports, but also to rethink the way a business can — and should — show up in the world,” Jonathan Soros, Athletes Unlimited co-founder, said. 

Soros said he hopes the new funds will help the leagues continue their momentum.

Vail Resorts continues to post favorable earnings despite pandemic-related restrictions. 

The Colorado-based company — which operates more than 35 resorts and ski areas — generated $2.5 billion in revenue in fiscal Q4 2022, a 32.3% increase year-over-year and its highest figure since 2009. 

• Net income reached $347.9 million in fiscal Q4, up from $127.9 million in Q4 2021.
• The company’s total cash and revolver availability as of July 31 was roughly $1.7 billion.
• Its mountain segment generated $1.3 billion in revenue in Q4, up 21.7% year-over-year.
• The company’s lodging segment saw revenue increase by $101.8 million compared to Q4 2021.

Vail Resorts has announced plans to invest $175 million in its employees across all of its North American resorts, including increasing the company’s minimum wage to $20 per hour. 

Last year, Vail Resorts announced a $315 million-to-$325 million capital plan that will add 18 new or replacement lifts across 12 resorts ahead of the 2022-23 ski season. 

Growing Portfolio 

Vail Resorts has maintained its momentum during the pandemic through acquisitions. 

In December 2021, the company acquired Seven Springs Mountain Resort in Champion, Pennsylvania, for $118 million. The deal included Hidden Valley Resort and the operations of Laurel Mountain Ski Area, both located near Pittsburgh.

Last month, Vail Resorts closed its first strategic investment in Europe, the acquisition of a majority stake (55%) in Andermatt-Sedrun Sport AG, the largest ski area in Central Switzerland.