College football’s latest re-envisioning includes a multibillion-dollar proposal led by former Disney executives and calling for a system funded by private equity, officials told CBS Sports on Tuesday. I admitted it.
Private equity firm Smash Capital will finance the 70-team structure, excluding the lower tier of the FBS, sources told CBS Sports. The project includes $9 million that will be injected into a system that will expand and reschedule college football’s postseason and feature tiered revenue sharing.
The effects of all of this are already being noticed as this season’s College Football Playoff field expands from four teams to 12 teams, thanks to conference realignment. What used to be a major nonconference game in the SEC and Big Ten is now a conference game in those two leagues. Going forward, these two leagues will also equally split 59% of the CFP revenue share.
However, the new proposal would eliminate all games between the current Group of 5 teams and FCS teams. The 70 schools will be purchased as part of a single entity’s media rights package. It is not immediately clear which 70 schools will be included.
The proposal, dubbed “Project Rudy,” is likely to begin after all current major media rights deals expire around the 2031 season.
Former University of Notre Dame athletic director Jack Swarbrick is also working on the project. He was also one of the original four to develop the 12-team playoff, along with SEC commissioner Greg Sankey, former Big 12 commissioner Bob Bowlsby, and former Mountain West commissioner Craig Thompson. Mr. Swarbrick resigned from his position earlier this year.
The proposal said there would be “multiple” automatic eligibility spots in the SEC and Big Ten playoff fields. The two conferences each attempted to introduce automatic qualifying spots for their teams in the 12-team field earlier this year, but the concept was shot down.
After viewing the presentation materials, Northern Illinois AD Sean Frazier said, “It makes me think more deeply.” “I think it’s a great concept, and we value the ‘haves.’ But the ‘have-nots’ will be in contention. ”
“Project Rudy” may also face copyright issues soon. Rudy Project is a 40-year-old company that manufactures and sells cycling sunglasses.
While SEC and Big Ten officials meet in Nashville this week to discuss the future of the sport, those outside those two leagues are pondering how much power the two can wield.
“The current system is becoming increasingly exclusive,” said a person familiar with the Project Rudy deck. “If you really want to emphasize the value of college football as the second most popular sport in America, you can’t do that and take away three-quarters of your membership.”
Two major restructuring plans currently exist. Last week, a college football league was reintroduced, with a press release announcing the plan’s members. The group, which called itself College Sports Tomorrow, had already earned the nickname “Super League.” Last week’s press release detailed the proposal for a 72-team “Power 12” conference and a remaining 64-team “Group of Eight.”
“Well, we’re a Super League, period,” SEC Commissioner Greg Sankey told CBS Sports. “I’ve been saying that for years. The fact that other people have opinions that aren’t really affected by the degree of our evaluation probably teaches you some things you can learn. It’s great because I’m the commissioner of the Southeastern Conference, and I don’t respond to hypotheticals about what would happen if I dealt with my reality. ”
Any major restructuring of college football would require approval from Sankey and Big Ten Commissioner Tony Petiti. They manage 34 of the most desirable brands in sports. One member of College Sports Tomorrow was asked by CBS Sports earlier this year about the accounting treatment of Sankey and Petiti in a single organization like the CSFL.
“I’ll buy it for you,” the man said, looking confused.
Private equity is becoming increasingly influential in major sports. The NFL recently allowed private equity firms to invest up to 10% in teams. Big 12 Commissioner Brett Yormark earlier this year proposed private equity partners with PE giant CVC. But ultimately, the ADs and presidents of the big 12 companies weren’t interested.
Private equity provides cash to companies in exchange for ownership. In the case of the Big 12, CVC would have held a 15% to 20% stake in the league. One of the concerns expressed by Big 12 school administrators was what that ownership would look like.
As proposed, the league would receive an infusion of up to $1 billion in cash, to be repaid based on a projected increase in the value of the Big 12’s media rights.
Since at least 1999, there have been a series of restructuring and playoff proposals to bring the sport under one roof. In 1999, the Swiss magazine International Sports and Leisure proposed a 16-team playoff that would raise $3 billion over eight years.
“Super League” and “Project Rudy” were born in consecutive weeks.
A member of College Sports Tomorrow who saw the deck said, “There are about five or six people in this type of group.” “I’ve watched all of them. They’re all smart people, but what’s somewhat unique and very different from College Sports Tomorrow and Smash is that those issues are very commercially oriented. A lot. This overstates the obvious: college football is the second most valuable sport in the United States by a significant margin, an undervalued market, and an undervalued distribution. , and monetization has not been done adequately. ”
The “Project Rudy” proposal was first reported by Yahoo Sports on Tuesday.
