I know that you will be totally shocked, shocked to discover that, once again, the world has failed to appreciate Larry Scott’s financial acumen.
The Pac-12 has decided against selling ownership in its media rights to a private equity firm, commissioner Larry Scott told the Hotline, but it still could take on a strategic partner.
Scott said the presidents and chancellors have ruled out an arrangement with a “pure financial institution” that would receive minority ownership in a media rights holding company and, in return, provide each campus with tens of millions in up-front cash.
However, the Pac-12 continues to examine partnerships with media or tech companies that could involve selling ownership for cash but would better position the conference for media rights negotiations in 2023-24.
“We’ve narrowed the field,’’ Scott said. “(The CEOs) were not interested in doing something with a pure financial institution, even though we had a lot of interesting offers at the kind of valuations we were hoping for and really great terms.
“They don’t want to do something with a private equity or financial firm.”
This, of course, begs the question of why Scott was hot in pursuit of a deal his school presidents didn’t want, but, hell, doesn’t everyone need a hobby?
This is so going to wind up with the Pac-12 cutting the same kind of deal in five years that every other P5 conference has now. That would be funny, except it means Scott will have given away millions by selling his bosses on how much better his business plan would turn out. Give the man credit, though. He’s getting paid like it did turn out better.