After conference realignment already caused college football fans a lot of grief, it seems like private equity firms will be something that supercharges the change even more.
According to Front Office Sports, private equity firms are "increasingly eyeing college sports as a place for new opportunities"
For those who do not know, private equity is when a firm gives a business or corporation immediate money for stakes in the company. These private equity firms then take in the profits of the company.
In the case of college football, schools would be making deals with firms to then use that money to fund their sports programs. For some, that could allow them to get out of their conference agreement and obligations.
Private equity in college football: Who could be the first school to use it?
While it seems like nothing will happen for a while, Florida State has already contacted JPMorgan Chase about finding firms that could give them a huge fusion of cash in order to leave the ACC for a conference like the SEC.
The Seminoles are locked in the ACC until 2036 due to the fact that the conference has a grant of rights clause. They would have to pay three times the revenue that they made in the last financial year. Clemson has also been rumored to want to leave the ACC but they have not been linked to private equity firms yet.
Having private equity firms in college sports makes this part of the sport even more depressing. Keep in mind, that college student-athletes do not get paid by the school that is seeking an investment in order to yield a greater profit off the labor that is made mainly by the college athletes. Yes, other people contribute to the success of college athletics but the players are the reason, they are making gobs of money.
