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Sir Larry Scott.. (P12 considering buying out Larry Scott)

Jalapeno said:
If he's leading the charge, what does that say about the chancellors/presidents of the other Pac-12 schools?
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Lack of interest. Phil actually cares about athletics because a lot of his legacy is attached to it & the move to the P12.
 
Buffarino said:
You know it's not a real revolution if Dr. Phil is leading the charge.
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He's clearly changed the way the schools interface with Scott and the league office;
  • “I had conversations with (Scott), and he was very open to moving this forward the way I wanted,” DiStefano said.
  • Scott’s approach is to meet separately with the athletic directors and presidents/chancellors, adding to the sense among the ADs that they were viewed in a subordinate capacity.
  • “The way I explain it is, we are going through an evolution. When (Scott) was hired, it was a very different group of presidents. They did things one way. I see new individuals coming in’’ — the majority of presidents and chancellors have been appointed within the past few years — “and I think most of us … believe in an open, transparent model.” That approach, according to sources, runs counter to the model in place for most of the decade.
  • “This is all Phil’s way of opening everything up,’’ a source said. “I think he’s watching to see how it goes.’’
  • Asked for his views on conference leadership, DiStefano said: “(Scott) still has a contract with us. He’s the commissioner, and we’re working on things together. That’s something we’ll take up at another time.” Scott’s contract runs through the spring of ’22.
Those changes sounds like leadership to me. The way he's building consensus with ADs and Presidents suggests that its gonna be informed decision time soon. The above leads me to believe that Scott's days are numbered.
 
MiamiBuffs said:
He's clearly changed the way the schools interface with Scott and the league office;
  • “I had conversations with (Scott), and he was very open to moving this forward the way I wanted,” DiStefano said.
  • Scott’s approach is to meet separately with the athletic directors and presidents/chancellors, adding to the sense among the ADs that they were viewed in a subordinate capacity.
  • “The way I explain it is, we are going through an evolution. When (Scott) was hired, it was a very different group of presidents. They did things one way. I see new individuals coming in’’ — the majority of presidents and chancellors have been appointed within the past few years — “and I think most of us … believe in an open, transparent model.” That approach, according to sources, runs counter to the model in place for most of the decade.
  • “This is all Phil’s way of opening everything up,’’ a source said. “I think he’s watching to see how it goes.’’
  • Asked for his views on conference leadership, DiStefano said: “(Scott) still has a contract with us. He’s the commissioner, and we’re working on things together. That’s something we’ll take up at another time.” Scott’s contract runs through the spring of ’22.
Those changes sounds like leadership to me. The way he's building consensus with ADs and Presidents suggests that its gonna be informed decision time soon. The above leads me to believe that Scott's days are numbered.
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I read that, but I'm not buying **** until I see it. He's proven time and again to be a chump who has no backbone who scurries for cover when things get tough. I'm more inclined to believe that RG is leading this.

Talked to a friend who works at Wazzu yesterday and they are not fans of Scott, to put it mildly. Their AD is deep in the hole financially because the projected revenues have not panned out
 
Buffarino said:
I read that, but I'm not buying **** until I see it. He's proven time and again to be a chump who has no backbone who scurries for cover when things get tough. I'm more inclined to believe that RG is leading this.

Talked to a friend who works at Wazzu yesterday and they are not fans of Scott, to put it mildly. Their AD is deep in the hole financially because the projected revenues have not panned out
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Wazzu has been building that hole for quite a long time. Moos left their finances in shambles after his building spree. Anybody who spends like there is no tomorrow without the income to repay is going to pay the piper sooner or later. They can blame the conference all they want but they were more than foolish enough all on their own.
 
Buffarino said:
I read that, but I'm not buying **** until I see it. He's proven time and again to be a chump who has no backbone who scurries for cover when things get tough. I'm more inclined to believe that RG is leading this.

Talked to a friend who works at Wazzu yesterday and they are not fans of Scott, to put it mildly. Their AD is deep in the hole financially because the projected revenues have not panned out
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Buffarino has it about right regarding DiStefano. He might be good at swatting flies on a sh*t wagon.
 
We had a Jr. High football coach that was described once as a good breather. That was the nicest thing the local football fans could saw about him. Phil D. Almost meets that standard.
 
leftybuff said:
Nice to hear from you B30.
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Good to see you too, lefty. I'm still around. Post some on the other board. I find it easy to navigate over there. Yeah, I know, I'm a computer wimp.:) And while I'm at it, it's nice to see the coach Rick George hired. Tucker doesn't have any results yet, but it looks like a foundation will be put in place. I like the line coaches he hired. And recruiting linemen on both sides of the ball looks like a priority.
 
buffalo30 said:
Good to see you too, lefty. I'm still around. Post some on the other board. I find it easy to navigate over there. Yeah, I know, I'm a computer wimp.:) And while I'm at it, it's nice to see the coach Rick George hired. Tucker doesn't have any results yet, but it looks like a foundation will be put in place. I like the line coaches he hired. And recruiting linemen on both sides of the ball looks like a priority.
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I couldn't agree more with the bold. FB is still a game won or lost up front. MikMac did a great number of good things, but I never understood his approach to OL...or if he even had an approach. Looking forward to FB season. Cheers.
 
Quick draw reaction to the book:

Assuming that they get the full $750, if the new investor(s) end up owning <=25% of the media company, it's a decent deal for the conference, and I hate to say it, but Larry Scott will be somewhat vindicated (the lower the ownership percentage, the better of a deal it is for the conference, and the better Scott looks).

If they have to give up more than 25%, it's not good. If outside ownership approaches 50%, it's a ****ing fiasco and there needs to be scalps.

All of that is the VC/PE side of me, and it's just a quick back of the envelope deal multiple. I could be wrong, but 7.5x EBITDA should be about the median for a media company.
 
From the article... So it'll most likely be multiple investors that will own part of "NewCo" only and participate in conference profits.

My question is why the major increase from $500m to $750m? Did the consulting firm suggest that increase investment that would correspond with a higher equity stake or did they suggest it because $500m was found to be too low?
Among the details outlined in the bid book, according to sources:
  • Investors are required to make a 25-year commitment.
  • A minimum investment of $100M is required for individuals in an investment group.
  • Investments are expected to be paid up front. The Pac-12’s book did not detail a specific rate of return. The investor would own a share of NewCo to be determined and participate in the profits as an equity investor. The expectation, sources said, is that NewCo eventually would be sold and the investor would benefit, but there are no guarantees.
  • Terms of an investment could vary from one investor to another depending on the value the investor brings as a strategic partner.
  • The Pac-12’s media-rights deal with ESPN and Fox Sports is worth $3B over 12 years and expires in ‘23-24.
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SIAP, but this article really spinning the changes within Pac12 leadership as a kind of coup.

...Now the ADs, not Scott, are in charge of setting policy; Arizona athletic director Dave Heeke is the new chairman of the ADs’ council.

Scott’s power base eroded the last few months as revelations of excessive spending, officiating screw-ups, inconvenient football/basketball starting times, the relative lack of income from media rights and the disappointing performance of the Pac-12 Networks, among other things, put the league in a bad light.

Scott’s arrogance, his ability to reign with little opposition, has been replaced by the AD council, and by a board of presidents, chaired by DiStefano.

Scott’s longtime supporters, Arizona State president Michael Crow and Oregon State president Ed Ray, are not on the three-person president’s board and have, in a sense, lost significant influence...
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tucson.com link
 
TSchekler said:
My question is why the major increase from $500m to $750m?
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Have you ever worked with investment bankers?

The reason the number is higher is because they asked what percentage of ownership the conference/schools would be willing to give up, and the bankers said "well, we can get you $750MM for that."

Whether they can or can't get that much remains to be seen. From my experience the conference will probably have to give up a larger % ownership than they initially contemplated to get to $750MM, but they'll probably be able to get more than $500MM for the % that they did contemplate.

Investment bankers rarely underpromise and overdeliver, normal operation is exactly the opposite. (I'm not actually as negative on them as it appears here: they do provide a valuable and necessary service, but you just always need to recognize that they are actually selling on both sides of every transaction.)
 
In a letter sent to Pac-12 executives following the 2018 season, three former football officials offered a sharp, detailed critique of the conference’s officiating program and asked “for necessary changes in a positive manner.”

Mack Gilchrist, Charles Czubin and Fred Gallagher, who have more than 100 years of experience as Pac-12 officials, directed their criticism at commissioner Larry Scott and vice president for officiating David Coleman, but they did not let general counsel Woodie Dixon off the hook.

“We do not appreciate the direction this Conference is headed under your direction by disgracing its long and respected heritage,’’ they wrote to the conference in late December....
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copy of the full letter at link below

mercurynews link
 
Considering Larry Scott’s track record on projections of revenue streams, I find it really funny to even play with the hypothetical of a $750mm or $500mm or even $250mm cash injection to the schools.

Additionally, from the article, less than 10% is slated to go to investment in the P12 network. This is short-term desperation and could have disastrous long-term effects.

How does this get PAC12 games in more homes? Are they hoping that AT&T - the owners of DirecTV - will be investors? They’re clearly great negotiating partners.

We’ve entered Elizabeth Holmes / Theranos territory with Larry Scott. I’m praying he commits some sort of negligence that would void his contract.
 
Highlander said:
Sounds a whole lot like that Real Estate Agent that supposedly works for you.
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Yep. And 90% of home sellers "hire" the agent that tells them they'll sell their home for the highest price.

You would think that if you own a business large enough to hire an ibanker to market your securities that you would be more sophisticated than billy joe homeowner, but nope - they hire the ibanker that tells them they'll sell their ______________ for the highest price.
 
skibum said:
Have you ever worked with investment bankers?

The reason the number is higher is because they asked what percentage of ownership the conference/schools would be willing to give up, and the bankers said "well, we can get you $750MM for that."

Whether they can or can't get that much remains to be seen. From my experience the conference will probably have to give up a larger % ownership than they initially contemplated to get to $750MM, but they'll probably be able to get more than $500MM for the % that they did contemplate.

Investment bankers rarely underpromise and overdeliver, normal operation is exactly the opposite. (I'm not actually as negative on them as it appears here: they do provide a valuable and necessary service, but you just always need to recognize that they are actually selling on both sides of every transaction.)
Click to expand...
So you’re saying the P12 initially announces they want $500m for X% equity stake in the NewCo entity. Then, they hire The Raine Group and they say, “for that X% of equity stake, we can get you $750m”?
 
TSchekler said:
So you’re saying the P12 initially announces they want $500m for X% equity stake in the NewCo entity. Then, they hire The Raine Group and they say, “for that X% of equity stake, we can get you $750m”?
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Pretty much.

Except they announced "we want to raise $500mm," then privately said "we're willing to sell x%, what can we get for that?"

And the answer they apparently got back was $750mm.
 
You are all wrong. 750MM is what Scott negotiated as his buyout, network is worth less than 100MM based on net profit. The only good contact he has negotiated is how much he steals from the conference each year. Can't wait till they cut this cancer out of the conference.
 
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