The Big 12 has agreed to a first-of-its-kind conference-wide private capital deal that is expected to deliver at least $12.5 million — to the league office to drive commercial development and business growth; offer schools an opt-in capital credit line of $30 million each; and create a strategic business partnership that could pay off when the conference next goes to market for its media rights contract.
According to Yahoo! Sports, the Big 12 is describing the deal as the “RedBird Business Development Partnership.”
As part of their Collegiate Athletic Solutions partnership, the firms are co-investing the infusion into the conference with an expected return. However, the capital partners will hold no ownership in the league and the deal will not change the operation or governance of the conference.
While RedBird will provide a $12.5 million capital infusion and help create more commercial revenue for the Big 12, RedBird will not get an ownership stake in the 16-team league or its revenues, and also will have no operational or governance oversight.
The Associated Press reported that people familiar with the matter said it's unclear how many schools would even consider taking the money. However, a majority of athletics departments across the country pull every level they can find to fund competitive programs.
RedBird is the second-biggest shareholder of Paramount, which owns CBS and is working to acquire TNT, which could be an in for Big-12 media rights deals.
