What Big 12 schools rejecting private equity could mean for funding
Twelve total Big 12 schools have now turned down a line of credit from private equity. Here's why they might be doing so.
The Big 12's decision to turn to investment from private equity firms has been controversial, and even most of its member schools don't seem to be on board. According to USA TODAY Sports' Brent Schrotenboer, four more Big 12 programs — Colorado , Arizona, Iowa State , Kansas State and Oklahoma State — have turned down the potential credit line offered by the league, which comes at a 10% interest rate. That brings the total to 12 conference members who have rejected credit from private equity, as those four schools joined TCU, Baylor , Texas Tech , Houston, Cincinnati, Brigham Young, UCF and West Virginia.
No Big 12 programs have announced plans to opt in to the credit opportunity, though Utah, Kansas and Arizona State are yet to make a decision. According to Schrotenboer, there are several reasons these schools may be declining the influx of cash, which comes from a partnership with RedBird Capital and Weatherford Capital. For one, they may think they can get a better interest rate elsewhere or are able to self-fund through donations and other fundraising tools.
Additionally, Schrotenboer interviewed former Stanford economics professor Roger Noll, who explained that uncertainty over potential long-term deficits could explain these schools' reluctance to take on additional debt. Exploring private equity has become a growing trend as operational costs rise in college sports, but it seems that, at least for now, Big 12 schools are hesitant to participate. Contact/Follow @College_Wire on X and @College_Wires on Threads.
Like our page on Facebook to follow ongoing coverage of college sports news, notes, and opinions. This article originally appeared on College Sports Wire: Big 12 teams reject private equity amid long-term budget questions