Big 12 Presidents Approve Deal With RedBird Capital Partners

Last week, the Big 12 board—consisting of all 16 university presidents and chancellors—voted to approve a five-year business partnership between the conference and RedBird Capital Partners, Front Office Sports has learned.

The goal of the deal, which was first reported in December, has three components. First, the two will work together on commercial development to source extra revenue for the conference. Second, the conference will receive a $12.5 million capital infusion to aid with revenue generation—this would also allow the Big 12 as a conference to become an investor in other companies to earn revenue. Third, schools will have access to up to $30 million.

Private investment firm Weatherford Capital is also an investor in the deal. Moelis & Co. assisted with brokering the deal. Moelis & Co. assisted with brokering the deal.

“I do believe in times of uncertainty you want to have a strong bench behind you,” Brett Yormark, Big 12 Commissioner, told FOS. “And we’ve got a strong bench now.”

Redbird Capital is a private equity firm, but the deal doesn’t constitute a private equity investment. RedBird won’t take an ownership stake in the Big 12 or a stake in its revenues, nor will it have any operational oversight into the Big 12. Last May, Yormark told FOS that the conference’s presidents and chancellors were not interested in a private equity deal. But because this deal did not offer equity or ownership stakes, many Big 12 members were in favor of it, a source previously told FOS.

The first part of the deal: RedBird will provide expertise and assistance with procuring additional revenue streams for the conference, including things like sponsorships or more involved investment opportunities. These deals could include both opportunities within RedBird’s existing portfolio or outside of it: For example, in an informal capacity last year, RedBird helped the Big 12 finalize a deal with the nonconference basketball tournament Players Era, a company owned by EverWonder Studio, which is owned partially by RedBird.