The Big 12 Conference recently finalized their partnership with a pair of private capital firms, RedBird Capital and Weatherford Capital. The deal netted the league $12.5 million over the next five years, but it also came with the option for some extra help for each individual league member – a $30 million line of credit from the private capital firms.
While that type money is enticing in today's NIL and revenue sharing era, and could help change the trajectory of a program, it also must be paid back if it is accepted. It also carries an interest rate of also 10 percent.
Why are the West Virginia Mountaineers turning down private capital credit line?
WVU has joined a number of other Big 12 programs in rejecting the offer. And during his annual spring press conference on Tuesday, West Virginia athletic director Wren Baker was very open about what went into the decision to decline the offer.
"Listen, I don't think there is anything is wrong with optionality. It's always good to have that," Baker said. "We don't plan to exercise that at this time, primarily because if we were to need capital for a project, like the West Tower project, we could get that at a more affordable interest rate."
"And if we're taking that out to cash flow annual expenses because we're upside down, it's really kind of like a payday loan. We're going to have to start paying that loan back, and if you don't have a clear line of sight on additional revenue, you're just making the pain hurt worse down the road."
As has already been known, WVU AD Wren Baker confirms they don't plan to exercise the Big 12's "payday loan" offer.
— Mike J. Asti (@MikeAsti11) May 19, 2026
Baker makes some wise points in his assessment of the credit line, understanding that while the up front money might be a short-term boon, it could also significantly harm the school's athletic department in the long term without a proper plan to pay it back.
As of now, 13 schools in the Big 12 have turned down the offer – only Arizona State, Kansas, and Utah are yet to make a decision. It's also worth noting that the Utes have an existing private equity deal in place with a different firm.
Add us as a preferred source on Google