Full Breakdown
Big 12 Partners with Private-Equity Firm to Close Revenue Gap
5/13/2026, 10:08:10 PM
Deal Overview
In August 2022 Big 12 commissioner Brett Yormark secured a partnership with RedBird Capital Partners and Weatherford Capital, forming Collegiate Athletic Solutions (CAS). The three-part model provides (1) a commercial-sponsorship operation that has already generated roughly $100 million, highlighted by a PayPal partnership; (2) a $12.5 million direct investment to launch conference-level EBITDA-generating businesses; and (3) an optional credit line of up to $30 million per school, repayable from future revenue distributions. At least 11 of the league’s 16 schools have declined the credit line so far.
Financial Context
The Big 12’s total revenue is under half of the Big Ten’s $928 million, leaving a projected $15 million-per-school shortfall. NCAA data show 2025 operating expenses of $131.7 million per school and average losses of $57.4 million, a $9 million increase from the prior year. Rising costs from coaches’ salaries, NIL contracts and upcoming player-revenue sharing intensify the pressure on athletic budgets. Closing even half the projected gap would require the conference to generate $240 million per year in new conference-level revenue.
Official Statements
Yormark said the RedBird partnership offers a “bench” of capital options that schools can tap when needed. Klein noted many athletic directors are waiting for possible legislative or regulatory changes before using the credit line. Cardinale framed the deal as an educational process to teach schools how to work with capital rather than merely provide cash. He emphasized that the goal is not simply to receive funds but to understand how to manage capital effectively.
Criticism
Critics label private-equity firms as “vultures” that chase short-term profit, risking long-term stability. The reluctance of most schools to draw on the credit line reflects concerns about regulatory uncertainty and debt-driven pressure on athletic budgets.
Conflicting Reports & Gaps
Sources do not give a firm estimate of new revenue the CAS model will produce, leaving the $240 million target unverified. The timeline for building the proposed EBITDA businesses also remains unclear.
Verbatim Quotes
- “The onus is on the schools to innovate,” — Robert Klein, President, RedBird Capital Partners
- “Private equity gets lumped into this amorphous monolithic group, which misses the point,” — Gerry Cardinale, Founder and Managing Partner, RedBird Capital
- “They provide an incredible bench for us during these times of uncertainty,” — Brett Yormark, Big 12 Commissioner
- “I think many ADs are waiting to see what legislative and/or regulatory changes might come before committing to take capital,” — Robert Klein
What’s Next
CAS’s five-year agreement ends in June 2031, coinciding with the expiration of the Big 12’s media-rights contracts with ESPN, FOX and TNT. The conference hopes the capital and commercial expertise will help it secure a more lucrative, diversified rights package that includes conference-owned businesses.
