Key Takeaways
- • Private equity investment in college sports will not fully open until clear rules and a predictable governance structure are in place, according to an expert panel at the 15th annual University of Michigan Sport Business Conference.
- • Private equity views college sports as a multibillion-dollar opportunity, with long-term revenue streams from sponsorship, media rights, and ticketing, but deals have been slow since the House v. NCAA settlement received final approval in 2025.
- • The Big Ten private equity deal collapsed last year after UC Investments, the University of California pension fund, indicated it would not sign without Michigan and USC, despite 16 of 18 teams reportedly supporting the transaction.
- • Investors cite uncertainty over governance, conference realignment, and athlete employment status as the main obstacles, and say federal legislation such as the Protect College Sports Act would help.
- • Private credit structures, which provide loans rather than equity, are seen by experts as an easier path than traditional private equity.
Summary
Private equity firms see college sports as a multibillion-dollar opportunity, and schools have a heightened need for capital amid soaring spending since the House v. NCAA settlement received final approval in 2025. Deals have nonetheless been slow to materialize. According to the article, Otro Capital and the University of Utah completed a transaction in December, and a few months later a conference-level agreement was reached between the Big 12 and RedBird Capital Partners. The article notes that RedBird IMI, in which RedBird Capital Partners is a joint venture partner, is the primary investor in Front Office Sports.
Other transactions have stalled despite appearing close. The Big Ten deal fell apart last year; 16 of the conference's 18 teams were reportedly in favor, but Michigan and USC held out. UC Investments, the University of California system's pension fund that had proposed buying an equity stake in the Big Ten, said it would not sign without both schools. Smash Sports co-founder and COO Magdalena Kala said on the panel that deals can be judged on process, outcome, and implications, and that the Big Ten deal raised concerns on all three.
Apollo Sports Capital chief strategy officer Sam Porter said private equity firms view college sports as a "very attractive" asset class, but that balancing public-institution and higher-education missions makes it difficult to "thread the needle." He argued that investors are accustomed to professional leagues with established ownership structures and rules, and that in college "there's just so much unknown," including conference realignment and related legal disputes. Porter said legislation clarifying how rights will be handled would most help private equity commit. American Conference commissioner Tim Pernetti said there is "plenty of money for the taking" but that schools need a "real partner" focused on commercial growth. Experts currently see private credit, which provides loans with interest and repayment, as an easier route than equity.
The Protect College Sports Act (PCSA), a bipartisan bill recently approved in the Senate, awaits a House vote, and its passage is not guaranteed. According to the article, it would double the revenue-sharing cap, seek to limit cap-circumvention NIL deals, implement a one-time transfer and five-for-five eligibility policy, impose agent restrictions, set health and safety and Olympic and women's sports requirements, limit conference realignment and coaching transfers, and allow schools to pool and sell media rights together. Pernetti acknowledged the bill is imperfect but said it needs to pass, warning that conferences will otherwise keep being raided for talent and coaches. The unresolved question of whether athletes should be classified as employees adds further uncertainty, and Pernetti said collective bargaining deserves discussion while acknowledging it would be a major challenge.
Other transactions have stalled despite appearing close. The Big Ten deal fell apart last year; 16 of the conference's 18 teams were reportedly in favor, but Michigan and USC held out. UC Investments, the University of California system's pension fund that had proposed buying an equity stake in the Big Ten, said it would not sign without both schools. Smash Sports co-founder and COO Magdalena Kala said on the panel that deals can be judged on process, outcome, and implications, and that the Big Ten deal raised concerns on all three.
Apollo Sports Capital chief strategy officer Sam Porter said private equity firms view college sports as a "very attractive" asset class, but that balancing public-institution and higher-education missions makes it difficult to "thread the needle." He argued that investors are accustomed to professional leagues with established ownership structures and rules, and that in college "there's just so much unknown," including conference realignment and related legal disputes. Porter said legislation clarifying how rights will be handled would most help private equity commit. American Conference commissioner Tim Pernetti said there is "plenty of money for the taking" but that schools need a "real partner" focused on commercial growth. Experts currently see private credit, which provides loans with interest and repayment, as an easier route than equity.
The Protect College Sports Act (PCSA), a bipartisan bill recently approved in the Senate, awaits a House vote, and its passage is not guaranteed. According to the article, it would double the revenue-sharing cap, seek to limit cap-circumvention NIL deals, implement a one-time transfer and five-for-five eligibility policy, impose agent restrictions, set health and safety and Olympic and women's sports requirements, limit conference realignment and coaching transfers, and allow schools to pool and sell media rights together. Pernetti acknowledged the bill is imperfect but said it needs to pass, warning that conferences will otherwise keep being raided for talent and coaches. The unresolved question of whether athletes should be classified as employees adds further uncertainty, and Pernetti said collective bargaining deserves discussion while acknowledging it would be a major challenge.
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