Notre Dame’s athletic director, Pete Bevacqua, has stated that private equity companies have expressed interest in partnering with the university to manage its operating costs, but the answer will remain no. The university is exploring ways to stay financially afloat amid rising expenses and a $20.5 million annual cap on revenue sharing for student-athletes.
Marc Lasry, CEO of Avenue Capital Group, has recently disclosed that his private equity group was bidding on several college sports teams, aiming to buy 51% of the team. He estimates that a football program with annual revenues of $100 million could secure a $500 million to $750 million windfall by selling a controlling stake in its franchise.
However, Bevacqua remains confident that Notre Dame will meet the cap and does not foresee private equity taking over college sports nationwide. The university has been strengthening its fundraising efforts, including the launch of RALLY, a collective and lifestyle agency for name, image, and likeness (NIL) space. This move aims to regulate fair-market value and work alongside athletic departments.
Bevacqua views the House Settlement’s shift in economic responsibility from unregulated collectives to universities as a positive step. He believes that Notre Dame is well-positioned financially and academically to handle this change without resorting to private equity solutions.
Source: https://eu.southbendtribune.com/story/sports/college/football/2024/12/18/notre-dame-athletic-director-pete-bevacqua-rejects-private-equity-house-settlement-college-football/77059965007