Private capital is officially dipping it's toes into college sports, and it is beginning with the Big 12. But some schools don't seem to be interested in what these private capital firms have to offer, and that includes West Virginia University.
The Big 12 recently finalized a partnership with two private capital firms, RedBird Capital and Weatherford Capital, in a five-year deal that will net the Big 12 $12.5 million. But the deal also offers each of the 16 members of the league access to a $30 million line of credit. To participate, individual schools must choose to opt in before a set deadline in 2027.
But not everyone is getting on board. In addition to UCF and Houston already deciding they have no interest in accepting that $30 million line of credit, reports on Tuesday from EerSports suggest that WVU also plans on turning down the optional credit line.
Behind WVU's choice to decline $30 million credit line
Reporting indicates that a "consensus" has formed on the WVU campus to decline the offer. Accepting would require approval from the university's President and Board of Governors, and WVU reportedly "favors other options."
While the exact interest rate on paying back the line of credit are still unknown, it has been reported that it is believd to be somewhere around 10%. But despite that being attractive in similar markets, reporting indicates that WVU believes that there are "other possibilities with a lower cost of capital." However, plans to generate extra revenue in lieu of the line of credit to compete with schools who do accept the offer have not been disclosed.
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