In this week’s Film Room, we bring your attention to:
- our Sports Business Journal article examining opportunities to strengthen Title IX compliance due to NCAA rule changes
- recent investment activity in college sports
Elimination of scholarship equivalencies impacts Title IX compliance
The impact of the elimination of scholarship equivalencies on Title IX compliance is an infrequently discussed aspect of the House settlement. We analyzed the practical application of that rule change in an article published on December 11 in Sports Business Journal.
As we noted in the article, the replacement of scholarship equivalencies with roster limits injects movement in the Title IX equitable participation and financial support analyses across Division I campuses. Importantly, the introduction of the ability to fully fund up to roster limits provides new flexibility for institutions to strengthen compliance with the law.
Investment activity in college sports
On December 9, the University of Utah announced a strategic partnership with Otro Capital that involves the formation of a new entity, Utah Brands & Entertainment LLC. The deal contemplates the transfer of certain revenue-generating operations from athletics and auxiliary services to the LLC and the institution partnering with Otro, which would have two seats on the LLC’s board.
The announcement indicated that the “new model will enhance operations of key commercial activities and generate a significant influx of funding for Utah Athletics.” It also indicated that the deal “will allow more of the university’s internal resources to remain focused on education (scholarships, access and student success), cutting-edge research and exceptional patient care.” Economic deal terms, including the investment amount and the cost of capital, were not released.
On December 12, Ross Dellenger of Yahoo! Sports reported on a potential deal among the Big 12 Conference, RedBird Capital Partners and Weatherford Capital. According to a statement quoted in the report, the conference is in negotiations with the two firms to “create a multifaceted strategic business partnership” and “provid[e] an opt-in capital solution for [the Big 12’s] member institutions to take advantage of up to $500 million of capital.”
[View source.]
