Reports: Big 12 Considering Private Equity Investment, Exploring Selling Naming Rights

Brett Yormark has been no stranger to out-of-the-box ideas since taking over as the Big 12’s commissioner, and he and the league are reportedly considering some more fresh ideas.

The Big 12 is considering taking a private equity investment, according to CBS Sports’ Dennis Dodd. The investment would be $800 million to $1 billion for 15% to 20% of the league from CVC Capital Partners, a Luxembourg-based collective that manages more than $200 billion in investments around the world, according to its website.

A portion of the cash infusion would go directly to the 16 conference members and could help bridge the financial gap between the Big 12 and the Big Ten/SEC. Big 12 schools earn $31.7 million a year with the league’s media rights deal. Big Ten schools earn about $75 million with its.

CVC’s portfolio is active in the sporting space. It includes LaLiga, the Women’s Tennis Association, an Indian Premier League cricket franchise, various rugby organizations and more. Other brands people might recognize include Petco and Razer. Dodd reports that no league has ever been this close to a private equity investment of this kind.

The Big 12 is also exploring selling its naming rights to a sponsor, according to ESPN’s Pete Thamel. The commercial sponsor would potentially take “Big” out of “Big 12” and replace it with the sponsor’s name. Why “Big” would get the boot in this scenario instead of 12 (because there are 16 teams in the league now) is a question worth asking.

Brett McMurphy then added to the list of reports by saying Allstate is in discussions with the league about its naming rights with name possibilities including “The Big Allstate Conference” and “The Allstate 12 Conference.” McMurphy reports the multiyear deal could earn the Big 12 between $30 million and $50 million annually, but that the Big 12 is also considering a financial company for the naming rights, which would pay “slightly more” than Allstate.

Thamel reports that the naming rights sponsorship has the potential to be worth up to “hundreds of millions over the course of the deal,” and that the league has had in-depth discussions about the possibility with a decision expected in the coming months.

Cash has been at a premium for a while now in college sports, but it has become especially pertinent after last month’s House v. NCAA settlement. If that settlement is approved, Power Four conference schools would be allowed to share up to $22 million annually with student-athletes.

Big 12 Media Days is in Las Vegas on July 9 and 10, where all of this ought to be discussed further.

Times are changing quickly in the college landscape.