Big 12 Seeks Private Equity Investments Which Will Boost NIL Capabilities

Below are the top NIL headlines from Thursday, February 27th:

Big 12 seeking external funding to gain NIL advantages

The Big 12 Conference met Thursday to discuss pursuing a capital partnership to bolster its financial standing and competitive edge. This has been a topic discussed in recent months, but the meeting this week was important because now the Big 12 presidents and athletic directors have focused on reviewing bids from three finalist firms, with RedBird Capital emerging as a leading contender. 

RedBird Capital, which has a strong presence in sports investment through stakes in AC Milan, Toulouse FC, and Fenway Sports Group, is seen as a strategic partner that could enhance the league’s financial and operational strength. This is in the news because the move reflects Commissioner Brett Yormark’s aggressive push to secure independent funding and ensure the Big 12 remains viable in the evolving college athletics landscape. These proposals aim to infuse millions of dollars directly into member schools, providing crucial financial resources. It's important to note that this is a capital proposal, not an equity sale, differentiating it from earlier discussions involving CVC Capital Partners, which ultimately did not materialize. 

The conference's pursuit of external funding reflects a broader trend in college athletics, where leagues are exploring innovative financial strategies to remain competitive. This is significant because in order for the Big 12 to compete in the transfer portal and other recruiting pipelines, they need a long term NIL plan. This potential influx of capital is intended to ensure the Big 12's long-term stability and growth, particularly as other major conferences like the SEC and Big Ten continue to secure lucrative media deals and playoff revenue. This initiative underscores the Big 12's commitment to providing its member institutions with the necessary resources to compete at the highest level, while also navigating the evolving financial landscape of college sports. The decision on the capital partner is expected in the coming weeks. Yormark, known for his innovative and business-minded approach, has been at the forefront of seeking new revenue streams for the Big 12, positioning the conference as a leader in exploring private investment opportunities in college athletics.

Charles Barkley on NIL system

This week when discussing NIL, Charles Barkley did not hold back in his criticism of the current state of college athletics, calling the NIL landscape and upcoming revenue-sharing model “unsustainable.” Speaking during Auburn’s men's basketball game against Ole Miss, Barkley expressed concern about how schools - particularly smaller programs - will manage the financial demands of paying athletes directly. “I don’t think the model of the NIL is sustainable,” he said on the ESPN broadcast. “Listen, I want all these kids to get whatever they can get. But asking colleges to come up with $20, $30 million a year – especially some of the smaller schools – I don’t think that’s a sustainable model.” On February 27th, Barkley explained that this is significant because it highlights how schools are still looking for donor money for NIL in addition to the revenue sharing money, brand deals. While he supports athletes earning money, Barkley emphasized the value of a free education and pointed out the rising cost of tuition, calling for solutions to help smaller programs remain competitive. “One of the great travesties of this country is what we’re charging kids to go to college. We need to find a way to make sure the smaller schools can compete.”

Barkley did not shy away from blaming the NCAA for its role in the current state of affairs, criticizing its past decisions and rigid enforcement of minor infractions. “They have nobody to blame but themselves,” he said ahead of his annual charity golf event with Auburn coach Bruce Pearl. “When they were suspending guys for getting peanut butter instead of butter on their bagels and suspending guys for getting more than one pair of shoes and suspending guys for selling their bowl jerseys. They’re just idiots. They’re the reason we’re in this situation right now.” Barkley said this is important because it shows the old system gave the student athletes no power, but this system gives the student athletes too much power. He further criticized how NIL has effectively turned into a bidding war for players, likening it to a professional model without the necessary structure to keep it sustainable. “College sports is the only league in the world that doesn’t have a salary cap,” he said. “That lets you know how s****y this situation is... Every league and every sport has a salary cap except college sports. That’s an unsustainable model to ask rich people, or your fanbase, to pony up millions of dollars every year.”

Despite his concerns, Barkley has put his money where his mouth is, donating significant sums to Auburn’s NIL collective, particularly to support the women’s basketball team. However, he remains critical of the current system, arguing that asking fans to fund NIL efforts while athletic departments generate record-breaking revenues is foolish. He sees the writing on the wall, believing that a pay-for-play model is already here, just not officially recognized. 

Texas A&M Record Breaking Multimedia Partnership

On Friday, February 28th, Texas A&M announced it is set to make history with a groundbreaking 15-year, $515 million multimedia rights agreement with Playfly Sports. This is the largest deal of its kind in college athletics. This partnership will significantly boost the Aggies’ annual multimedia rights revenue from $18 million to $34 million, providing a major financial advantage over their previous agreement with Learfield Sports. Playfly Sports, known for its data-driven approach to sports media and marketing, will help Texas A&M maximize fan engagement, sponsorship opportunities, and overall brand value. The deal, which begins in 2026, includes a substantial $95 million payout within the first three years, ensuring immediate financial benefits for the university. This agreement positions Texas A&M as a leader in leveraging media rights to strengthen its athletic programs and long-term competitiveness.

Beyond its record-breaking value, this partnership is particularly significant because it will also help fund Texas A&M’s NIL initiatives, providing additional financial support for student-athletes. Playfly Sports already manages multimedia rights for 25 athletic programs, including SEC rivals Auburn and LSU, demonstrating its expertise in maximizing revenue streams. As Texas A&M moves on from its longstanding relationship with Learfield Sports, this deal not only sets a new standard in college athletics but also reinforces the school’s commitment to securing top-tier resources for its athletes and programs.