Key Takeaways
- • The Kansas Board of Regents added a guardrail requiring its approval for any private equity or venture capital deal involving a university athletic department or athletic affiliated corporation, approved at a special meeting on Oct. 9, 2026.
- • The policy requires universities to notify the Board before engaging in material discussions likely to lead to a private equity transaction, agreement, or arrangement.
- • The provision excludes coaches' contracts, conference agreements, and revenue sharing or name, image and likeness (NIL) agreements with student athletes.
- • The amendment followed a Sept. 24 special meeting, refined after university attorneys said the initial draft could apply to more situations than intended.
- • Big 12 schools, including Kansas and Kansas State, have so far not accepted a line of credit of up to $30 million per school from the conference's league-wide deal with RedBird Capital Partners and Weatherford Capital.
Summary
The Kansas Board of Regents has added a guardrail to its policy on the fiscal and business practices of athletic departments and affiliated university corporations, requiring board approval for any private equity deal. According to the Topeka Capital-Journal, the board held a special meeting on Oct. 9 to approve the language, which states that "All contracts and agreements between a university athletic department or athletic affiliated corporation, and a private equity or venture capital entity must be approved by the Board prior to execution." The policy also requires universities to inform the Board "before engaging in material discussions that are likely to lead to a proposed transaction, agreement, or arrangement."
Regents chair Alysia Johnston said the board recognizes the critical short-term financial pressures facing athletics but wants to ensure that those pressures do not jeopardize long-term institutional priorities. The Regents refined the draft after a Sept. 24 special meeting, when university attorneys indicated the initial language could have been applied to more situations than the board intended. The final provision excludes coaches' contracts, conference agreements, and revenue sharing or name, image and likeness (NIL) agreements with student athletes.
The move comes as universities explore private capital to fund competitive athletics. The Big 12 Conference, which includes the University of Kansas and Kansas State University, reached a five-year league-wide agreement with RedBird Capital Partners and Weatherford Capital in April, the first such deal in major college sports. In June, the University of Utah, also a Big 12 member, finalized a deal with private equity group Otro Capital, making it the first athletic department in college sports to have such an arrangement.
Despite the conference deal, Kansas and Kansas State have not accepted their available funds. The Capital-Journal reported in May that K-State declined the offer, a line of credit of up to $30 million available to each school. Athletic director Gene Taylor said alternative financing could be found at a better rate and noted that athletics debt can affect a university's bond rating. USA TODAY reporting put the interest rate on the offered financing at nearly 10%.
Regents chair Alysia Johnston said the board recognizes the critical short-term financial pressures facing athletics but wants to ensure that those pressures do not jeopardize long-term institutional priorities. The Regents refined the draft after a Sept. 24 special meeting, when university attorneys indicated the initial language could have been applied to more situations than the board intended. The final provision excludes coaches' contracts, conference agreements, and revenue sharing or name, image and likeness (NIL) agreements with student athletes.
The move comes as universities explore private capital to fund competitive athletics. The Big 12 Conference, which includes the University of Kansas and Kansas State University, reached a five-year league-wide agreement with RedBird Capital Partners and Weatherford Capital in April, the first such deal in major college sports. In June, the University of Utah, also a Big 12 member, finalized a deal with private equity group Otro Capital, making it the first athletic department in college sports to have such an arrangement.
Despite the conference deal, Kansas and Kansas State have not accepted their available funds. The Capital-Journal reported in May that K-State declined the offer, a line of credit of up to $30 million available to each school. Athletic director Gene Taylor said alternative financing could be found at a better rate and noted that athletics debt can affect a university's bond rating. USA TODAY reporting put the interest rate on the offered financing at nearly 10%.
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