NIL and Revenue Sharing in college sports were always going to lead to drastic changes around the Country. Schools are now paying their rosters directly while spending more money in other areas, which is impacting their bottom line. Once the schools saw their revenue cut, it was clear that they'd find a way to replace the money they were missing out on.
One of the ideas that's been floated for a long time was the potential for schools or leagues to partner with private equity firms for an infusion of cash. On Wednesday, a Power 4 conference approved a deal to introduce private equity at the highest level.
The Big 12's private equity agreement is a major experiment for college sports
On Wednesday, Yahoo Sports' Ross Dellenger reported that the Big 12 approved a deal to create a "strategic partnership" with private equity firm RedBird Capital.
Big 12 has approved its private capital deal with RedBird Capital - the first such arrangement from a major NCAA conference.
— Ross Dellenger (@RossDellenger) April 29, 2026
Schools have a choice to opt in for ~$30M in capital and league gets at least a $12.5M infusion as part of a strategic partnershiphttps://t.co/7wtCwe9s0p
The schools will have a chance to opt into the agreement and receive an infusion of nearly $30 million while the Big 12 receives just north of $12 million in the deal.
RedBird Capital doesn't receive any ownership stake in the league or the schools, and leadership will not change. Where RedBird Capital and firms would cash in is when the league negotiates it's next media rights deal.
RedBird Capital is investing in the league, hoping that teams like Texas Tech and others spending big on their rosters will create increased viewership in the league. By increasing the popularity of the Big 12, the goal will be to land a massive TV deal, which would benefit both the firm and the Big 12.
If the partnership delivers promising results early on, then this will likely become a new normal in college sports. The biggest issue could be that if every conference and school lands a similar deal, we'll likely see no real impact which could lead to some downsides.
College sports are going to continue to change drastically as roster-building costs rise, and it'll be interesting to see just how far everyone goes.
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