FSU Drafts JPMorgan Chase to Explore Private Equity Raise

Florida State University has hired JPMorgan Chase to explore various approaches, including sourcing private funding and structuring commercial rights into a new company for its athletic department, according to a report from sports business site Sportico.

Sixth Street, which is the majority shareholder of the National Women’s Soccer League’s (NWSL) Bay Area expansion franchise and has a stake in Barcelona’s domestic TV rights revenue, is reportedly in advanced talks to lead a possible investment.

The Florida State athletic department is considering private equity investment as the program tries to close the revenue gap between itself and Big Ten and SEC schools, according to Sportico.

The report didn’t specify how Florida State would use the funds, but it could be to pay a $120 million exit fee from the Atlantic Coast Conference (ACC).

“The school is considering a structure similar to many of those pro sports investments, where commercial rights are rolled into a new company, the private equity fund invests in that entity, and then recoups its money via future media/sponsorship revenue,” the report noted.

Private equity backing would be a historic first in college athletics. We’ve seen groups seep into professional sports already, notably in global competitions like golf and Formula 1, as well as in the NBA.