University of Cincinnati athletics makes decision on Big 12 capital credit

The Big 12 has entered into a "strategic partnership" with RedBird Capital and Weatherford Capital, which provides the league with $12.5 million and allows member schools to opt into a capital credit line of $30 million.

Wednesday, May 6, the University of Cincinnati athletics became the latest Big 12 school to decline the loan.

Athletic director John Cunningham said he appreciates the Big 12's "creative ways to generate new revenue opportunities," but the university is declining the league's loan option.

"We appreciate the Big 12's continued focus on innovation and identifying creative ways to generate new revenue opportunities for the conference and its member institutions," UC Director of Athletics John Cunningham said. "At this time, Cincinnati does not plan to utilize the investment credit option made available through the league's partnership with RedBird Capital."

What would be purpose of using capital credit line?

Schools could use the money to keep up with the ever-changing payrolls of revenue sharing as a result of the House vs. NCAA decision, which went into effect last July 1. The firms are interested due to the possibility of bigger media rights deals. The Big 12's current deal with ESPN and Fox, worth $2.28 billion, expires in 2031.

Big 12 schools that have passed on RedBird Capital, Weatherford Capital

Houston, BYU, UCF, West Virginia and Utah have already passed on the $30 million loan. Utah is unique as they have their own private equity partner, Otro Capital. The unique deal is worth $500 million and has brought about