Key Takeaways
- • The Kansas Board of Regents, which governs six state universities, now requires its approval for any private equity deal involving Kansas university athletic departments, according to the Topeka Capital-Journal as cited by Sports Business Journal.
- • The board approved the change at a special meeting on Oct. 9 by adding language to its existing policy on the fiscal and business practices of athletic departments and affiliated university corporations.
- • The policy change follows the Big 12's five-year league-wide agreement with RedBird Capital Partners and Weatherford Capital, reached in April, which offers each conference school a line of credit of up to $30M.
- • The University of Kansas and Kansas State have not accepted funds under the Big 12 deal, and K-State declined the offer in May.
Summary
The Kansas Board of Regents has added a "guardrail" to its policy governing university athletic departments and affiliated corporations, requiring "the board's approval for any private equity deal" for Kansas universities seeking outside capital to compete in college sports. According to Bryan Richardson of the Topeka Capital-Journal, the board took up the change at a special meeting on Oct. 9, voting to approve the new language. The board oversees six state universities in Kansas.
The move comes after the Big 12 reached a five-year agreement with RedBird Capital Partners and Weatherford Capital in April. The deal was described as the "first conference in major college sports to strike a league-wide, private capital deal." Under the arrangement, each school in the conference can access a line of credit of up to $30M.
Richardson reported that the University of Kansas and Kansas State, along with other Big 12 schools, have not accepted the funding available through the conference's agreement with RedBird and Weatherford. Earlier coverage in May reported that Kansas State had declined the offer.
The regents' new approval requirement adds a layer of state-level oversight to private capital arrangements in college athletics, a area where individual schools have been exploring outside financing.
The move comes after the Big 12 reached a five-year agreement with RedBird Capital Partners and Weatherford Capital in April. The deal was described as the "first conference in major college sports to strike a league-wide, private capital deal." Under the arrangement, each school in the conference can access a line of credit of up to $30M.
Richardson reported that the University of Kansas and Kansas State, along with other Big 12 schools, have not accepted the funding available through the conference's agreement with RedBird and Weatherford. Earlier coverage in May reported that Kansas State had declined the offer.
The regents' new approval requirement adds a layer of state-level oversight to private capital arrangements in college athletics, a area where individual schools have been exploring outside financing.
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