TAMPA, Fla. — With college sports on the brink of a sea change that could have long-term financial implications, two private investment firms have created a platform to help athletic departments find funding.
RedBird Capital and Weatherford Capital on Wednesday announced the formation of Collegiate Athletic Solutions, which is seeking to capitalize on a college sports landscape facing significant upheaval.
The NCAA and its member schools are expected to vote this week on a proposed $2.7 billion settlement of an antitrust lawsuit, one that could leave schools with tighter budgets, or in some cases financial difficulties, in the next years.
The CAS would be available to lend money and offer guidance to athletic departments in exchange for a share of future revenue.
“The paradigm shift we are seeing in the college athletics ecosystem is similar to those we have seen with media distribution models, collective bargaining rights and premium hospitality,” said Gerry Cardinale, founder and managing partner of RedBird. Capital in New York. “Everyone is focused on the need to generate long-term growth by closing the gap between premiums and [intellectual property] and optimize revenue streams.
“CAS addresses athletic departments' near-term capital need with additional operational expertise in strategies that can improve competitive positioning.”
Weatherford Capital is headquartered in Tampa, Florida, and is led by brothers Will, Sam and Drew Weatherford. Drew Weatherford played football at Florida State and is a member of the school's board of trustees.
Florida State has been negotiating for more than a year with another investment firm, private equity giant Sixth Street, about a potential capital injection for the Seminoles.
“We are in the late stages of the competitive split between athletic departments and programs,” Weatherford said. “The impact of conference realignment, diverging media rights agreements, and the advent of NIL and revenue sharing are creating a greater financial divide at both the university and conference levels.
“History has shown that universities that invest skillfully in their athletic departments consistently outperform and outperform peer institutions. Our mission at CAS is to offer athletic departments a unique capital solution to invest when and where they need it to compete at their best. high level during this tenuous paradigm shift.”
