Further, Private Equity knows that percentage of revenue does not mean percentage of net income. This is “I will share in your profits, but not your losses”. Not only are the payments not fixed, they are due and payable even if the AD is losing a ton of money, because, you know, revenue is always gonna be there with the media contracts and ticket and merchandise sales.
What’s nteresting is Utah doing this in the face of all the reports the conference is looking at conference-wide PE deals. Either that initiative is dead dead or Utah is signaling pretty strongly they’d rather go it alone rather than any long term entanglements.
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