Key Takeaways
- • The Kansas Board of Regents unanimously approved, at a special Friday meeting, a policy requiring officials at the six state universities to notify the board's CEO and chair of "material discussions" about partnerships with private equity or venture capital firms tied to athletics (per Kansas Reflector).
- • All contracts and agreements between a university athletic department or athletic-affiliated corporation and private equity or venture capital entities must receive Board of Regents approval before implementation.
- • The policy does not cover coaches' contracts, conference agreements, revenue sharing, or name, image and likeness deals, following a revision to an earlier draft.
- • Board chair Alysia Johnston said the aim is to protect long-term finances and university control; general counsel John Yeary said initial meetings with private equity firms would not trigger disclosure.
- • The move follows the Big 12's April ratification of a five-year financial arrangement with College Athletic Solutions, a RedBird Capital Partners and Weatherford Capital partnership.
Summary
The Kansas Board of Regents amended its policy to require officials at the state's six public universities to notify the board's leadership of discussions about partnerships between intercollegiate athletic departments and private equity or venture capital firms, according to Kansas Reflector. The board approved the change unanimously at a special meeting held on a Friday, rather than waiting for its regular meeting scheduled that Wednesday in Wichita. The reason for the special session was not explained in the reporting.
Under the policy, universities must notify the Board of Regents' CEO and board chair before engaging in "material discussions" likely to lead to a proposed transaction, agreement or arrangement. The phrase was intentionally left vague. Board general counsel John Yeary said the requirement would not be triggered by an initial meeting with a private equity company, but would apply once interest becomes more serious and a deal appears likely to proceed. Regent Blake Benson questioned whether the term would be universally understood, while Regent Peter Johnston, a Salina attorney, said the ambiguity offered flexibility for institutions.
All contracts and agreements between a university athletic department or athletic-affiliated corporation and private equity or venture capital entities must be approved by the Board of Regents before implementation. An earlier draft was revised to clarify that the board does not assume oversight of coaches' contracts, sports conference agreements, or name, image and likeness deals involving athletes. Board chair Alysia Johnston said the board could hold executive sessions to protect proprietary information or trade secrets of companies, and that final votes remain subject to the Kansas Open Meetings Act. She said the goal was to avoid actions that could reduce control or harm the finances and sustainability of athletics programs and the universities overall.
The policy follows developments in the Big 12 Conference, whose university presidents and chancellors ratified in April a five-year financial arrangement with College Athletic Solutions, a partnership between RedBird Capital Partners and Weatherford Capital. According to the reporting, the deal did not transfer university or conference governance authority, ownership interests, or revenue rights. The Big 12 office received $12.5 million to promote commercial development, and each of the 16 conference universities was offered a $30 million line of credit at an interest rate near 10%, repaid through conference revenue sharing. Kansas State University and most other Big 12 schools declined the credit line, while the University of Kansas had not decided as of the reporting.
Under the policy, universities must notify the Board of Regents' CEO and board chair before engaging in "material discussions" likely to lead to a proposed transaction, agreement or arrangement. The phrase was intentionally left vague. Board general counsel John Yeary said the requirement would not be triggered by an initial meeting with a private equity company, but would apply once interest becomes more serious and a deal appears likely to proceed. Regent Blake Benson questioned whether the term would be universally understood, while Regent Peter Johnston, a Salina attorney, said the ambiguity offered flexibility for institutions.
All contracts and agreements between a university athletic department or athletic-affiliated corporation and private equity or venture capital entities must be approved by the Board of Regents before implementation. An earlier draft was revised to clarify that the board does not assume oversight of coaches' contracts, sports conference agreements, or name, image and likeness deals involving athletes. Board chair Alysia Johnston said the board could hold executive sessions to protect proprietary information or trade secrets of companies, and that final votes remain subject to the Kansas Open Meetings Act. She said the goal was to avoid actions that could reduce control or harm the finances and sustainability of athletics programs and the universities overall.
The policy follows developments in the Big 12 Conference, whose university presidents and chancellors ratified in April a five-year financial arrangement with College Athletic Solutions, a partnership between RedBird Capital Partners and Weatherford Capital. According to the reporting, the deal did not transfer university or conference governance authority, ownership interests, or revenue rights. The Big 12 office received $12.5 million to promote commercial development, and each of the 16 conference universities was offered a $30 million line of credit at an interest rate near 10%, repaid through conference revenue sharing. Kansas State University and most other Big 12 schools declined the credit line, while the University of Kansas had not decided as of the reporting.
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