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Brian Socolow, co-chair of Loeb & Loeb’s Sports industry group, appeared as a guest on “Follow the Fortunes,” a podcast hosted by insurance executive and underwriter Phil Schmidt covering the deals, capital and risk management that drive the business of sports.
In the podcast, Brian discussed private equity's expanding presence in college sports, explaining that investors are more concerned with predictable costs than with the Protect College Sports Act's restrictions on superleagues
"Just from what I've heard in speaking with people either in private equity or college athletics, the discussions are still happening with the knowledge that a bill has passed in the Senate that has some of those restrictions," Brian said. "Private equity is still interested... I think there is sufficient money and sufficient opportunity even with some restrictions currently, which may or may not continue in the future, that private equity maintains that interest."
He also discussed the University of Utah's arrangement with Otro Capital, which keeps the commercial operations apart from the athletes, along with the challenges of pairing private equity firms with public universities and the types of coverage insurers are now offering.
"So it's sort of like priming the pump," Brian said. "It [Otro Capital] is providing money, it's providing capital that [the University of] Utah will use to grow its athletic program [in order] to grow the different revenue streams that it has, and Otro Capital will get the benefit of that."
Click here to listen to the episode from the “Follow the Fortunes” podcast.
