sports
December 23, 2025
The pandora's box of college sports and private equity
College sports are a big business. Athletic programs at some major universities are valued at more than $1 billion. The top 75 programs have a combined value of over $50 billion. Revenues for the top football schools are growing at double-digit rates. This is a growth business. But many sports programs are under financial pressure. Costs exceed revenues.
TL;DR
- Some major university athletic programs are valued at over $1 billion, with the top 75 programs collectively worth over $50 billion.
- Universities are partnering with private equity firms for capital and expertise to grow revenue streams for major sports, particularly football and basketball.
- Supreme Court decisions in NCAA v. Alston and the NIL ruling have led to athletes being compensated, with some earning millions annually.
- Despite high revenues, some major athletic departments like the University of Texas and Ohio State University struggle with low profit margins or even financial losses.
- The University of Utah is the first major university to partner with a private equity firm through a separate for-profit entity.
- There is a tension between the financial opportunities from private equity and athlete pay, and the core educational mission of universities.
- Increased money in college sports, coupled with the rise of sports gambling, introduces risks of corruption and game-fixing.
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