137. Preparing the College Sports Industry for the Arrival of Private Capital

Dan Porter – CEO of Overtime – explains why Overtime Elite teams aren't tied to local markets, saying "we are playing for the internet, not cities."   Regional affiliations don't necessarily lead to loyalty for new sports franchises, so their goal is to optimize the virality of their content to build passionate fanbases from all around the world.   Listen to the full episode here: https://nvgt.com/podcast?ppplayer=1e977ebc536a4f7840f232ca6e253547&ppepisode=246a404d135fa7e04b1e6ce67a45706a   For more insights, visit our LinkedIn page or learn more about Navigate at https://nvgt.com/.

Our hosts explain the main factors schools should be considering when deciding if a private capital investment makes sense for their athletic department, and if so how they should prepare for it.   For schools that decide to steer clear of such deals, they will still need to prepare for how massive influxes of cash will change their conference and college athletics as a whole.   Private equity or private capital firms are looking for reliable, and predictable revenue streams such as media rights, sponsorships, especially at schools with big brands which have been under commercialized.   Areas for fast and sustainable ROI include: Increasing headcount for revenue generation staff (sales and fundraising) Modernizing ticketing and CRM technology Changing incentive structures within the athletic department   Larger projects like mixed-use real estate development take more time and capital to institute, but have the potential for massive gains of their own.   In preparing for this episode, AJ and Charles spoke with private capital firms as well as conferences and athletic departments to uncover which themes and topics are top-of-mind at the moment.   Timestamps: 0:55 - What type of athletic department is attractive to investors? 3:15 - What does it mean to be PE-ready? 10:00 - Does winning solve all problems? 12:45 - Hypothetical: Where would you deploy capital? 18:00 - Why college has lagged behind pro sports 19:25 - FOMO for the schools that don't get on board  23:45 - Changing your financial trajectory in a single season 27:05 - Commons mistakes for athletic departments   For more insights, visit our LinkedIn page or learn more about Navigate at https://nvgt.com/.

What's the real ROI of firing your coach and paying an expensive buyout?   AJ Maestas and Charles Rolston break down the numbers behind the high-profile coaching buyouts we're seeing in college football, and the potential economic justifications for taking big risks.   Listen to the full episode here: https://nvgt.com/podcast?ppplayer=1e977ebc536a4f7840f232ca6e253547&ppepisode=b8c86e42a9f3d7b6f2194bb9a89877e8   For more insights, visit our LinkedIn page or learn more about Navigate at https://nvgt.com/.

David Dunn - Founder of Athletes First - is one of the most successful NFL agents of all time. He gives an inside look at one of the sports industry's most fascinating and misunderstood professions.   David has represented the likes of Aaron Rodgers, Justin Herbert, Troy Aikman, and many more. He has signed the largest deal in NFL history 8 times! He has worked with 17 Hall of Famers, seven Super Bowl MVPs, eight Heisman Trophy winners, eight Walter Payton men of the year, and seven first overall picks.   Timestamps: 2:50 - Jerry Maguire 6:25 - David's origin and legal fight with the NFLPA and Leigh Steinberg 21:00 - Relationships with clients 28:15 - NIL & recruiting young athletes 35:30 - Rapid Fire Question     For more insights, visit our LinkedIn page or learn more about Navigate at https://nvgt.com/.

Jeb Terry – President and CEO of Cosm – tells the story of his first time experiencing an early prototype of a Cosm venue.   He explains the transportive nature of the "shared reality" experience.   Listen to the full episode here: https://nvgt.com/podcast?ppplayer=1e977ebc536a4f7840f232ca6e253547&ppepisode=4830009f2315f99b926e22e26021574b   For more insights, visit our LinkedIn page or learn more about Navigate at https://nvgt.com/.

AJ Maestas and Charles Rolston are regularly advising conference commissioners, athletic directors, and other clients shaping the future of college athletics.   They share their POV on various paths forward including revenue sharing, super leagues, athlete employment, and more.   Timestamps: 0:30- Can athletic department budgets continue to rise? 4:30 - What would a college super league look like? 8:00 - How are ADs keeping track of the changes? 12:35 - 15:35 What does college athletics look like in ten years? 16:25 - Revenue sharing with athletes   For more insights, visit our LinkedIn page or learn more about Navigate at https://nvgt.com/.

Who will win the bidding war for Warner Bros. Discovery? Netflix announced an $82.7B deal for all of WBD's streaming + studio assets, but now Paramount is pursuing its own $108 billion takeover that will include cable and linear networks as well.   Charles Rolston and Umar Hussain break down the biggest story in media.   Timestamps: 0:50 - What do we know so far? 3:10 - 6:37 The difference between the Netflix and Paramount offers 6:35 - How does this impact sports rights holders? 12:20 - Netflix's goal 17:50 - Which deal should WBD take? 21:35 - Predictions    For more insights, visit our LinkedIn page or learn more about Navigate at https://nvgt.com/.

Donn Davis – Chairman and Founder of the Professional Fighters League – explains what the UFC's most recent media deal means exciting things for the PFL in their upcoming negotiations with partners.   UFC gets $25M per event, and PFL has ⅓ of the audience. Donn predicts they'll end up getting much more than the $1M/event they currently receive.   Listen to the full episode here: https://nvgt.com/podcast?ppplayer=1e977ebc536a4f7840f232ca6e253547&ppepisode=cbd3d581cfc5eddf1236ad1d5520f1c1   For more insights, visit our LinkedIn page or learn more about Navigate at https://nvgt.com/.

Navigating Sports Media:   Dan Porter - CEO of Overtime - runs one of the biggest content platforms for the younger generation of sports fans. Overtime doesn't compete for sports rights, but they have added 35,000 followers per day for over nine years.   They have also made two major bets: building out their own leagues for high school basketball and high school football. Dan explains how their decision to pay young athletes accelerated the implementation of NIL at the college level.   Dan talks about the importance of giving young people a platform on social media and beyond. Prior to Overtime, he was President of Teach for America, and helped create one of the most downloaded apps of all time in Draw Something. One of the Overtime athletes launched the "six-seven" phenomenon among kids and young people.   Timestamps: 1:15 - Dan's background 7:10 - Growing with the Overtime audience 10:55 - What could the NFL or NBA learn from Overtime? 13:55 - Playing for the internet, not cities 16:40 - Overtime Elite kickstarted NIL 18:55 - Content philosophy 22:40 - Building a platform for young people 25:40 - Expanding into sports beyond basketball  30:20 - Dan's leadership style 34:30 - Rapid Fire Questions Restaurant Recommendation in Brooklyn: Terre | Pasta & Natural Wine   For more insights, visit our LinkedIn page or learn more about Navigate at https://nvgt.com/.

AJ Maestas and Charles Rolston break down the ROI metrics behind the (seemingly) crazy trend of expensive coaching buyouts in college football. They explore the economic and political factors at play that lead to these decisions for athletic directors and university presidents.   The right coaching hire can yield an incremental $20M - $35M per year for a football program, so there's a lot to lose by keeping a losing coach on staff. However, would it make more sense to take the money you'd otherwise use for a buyout and invest it in NIL?   Drawing on Navigate's work advising ADs and presidents while these factors are being weighed, AJ and Charles dissect the economics and decision-making pressures driving this high-stakes trend.   Timestamps: 0:45 - The ROI of firing your coach 5:00 - Spend on NIL or spend on a coach? 8:05 - Aligning AD incentives 16:40 - Legislation for everything ("good luck")   For more insights, visit our LinkedIn page or learn more about Navigate at https://nvgt.com/.