FSU Taps JP Morgan For Equity Raise

Wild Turkey

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www.sportico.com

Florida State Taps JPMorgan for Equity Raise as ACC Decision Looms

Florida State is working with JPMorgan to explore how its athletic department, facing a $30M revenue gap, could raise capital via private equity.
www.sportico.com www.sportico.com

Interesting article:

1. States the FSU exit fee from the ACC would be 120 million dollars (this is a far cry from the 300mm that has previously been reported)
2. If they are going down this road then their lawyers can't find and out for the GOR
3. To do it they would leverage debt to buy themselves out
4. This kind of thing doesn't happen overnight so them leaving isn't imminent but it could happen within a year's time
5. They are staring at potentially 13 years of reduced revenue and could more than cut that in half (the shortfall they are looking at in the future is 30mm a year)
Note: If that 120mm number is wrong then it doesn't help them

If the buyout is 120mm and they got a full share of the SEC or B1G money they potentially could live off ACC money for around 4 years and pay the debt off assuming the interest (which is high right now) didn't eat them alive.
 
120 million was always the exit fee, not sure where ppl kept getting 300mm from
 
Wild Turkey said:
www.sportico.com

Florida State Taps JPMorgan for Equity Raise as ACC Decision Looms

Florida State is working with JPMorgan to explore how its athletic department, facing a $30M revenue gap, could raise capital via private equity.
www.sportico.com www.sportico.com

Interesting article:

1. States the FSU exit fee from the ACC would be 120 million dollars (this is a far cry from the 300mm that has previously been reported)
2. If they are going down this road then their lawyers can't find and out for the GOR
3. To do it they would leverage debt to buy themselves out
4. This kind of thing doesn't happen overnight so them leaving isn't imminent but it could happen within a year's time
5. They are staring at potentially 13 years of reduced revenue and could more than cut that in half (the shortfall they are looking at in the future is 30mm a year)
Note: If that 120mm number is wrong then it doesn't help them

If the buyout is 120mm and they got a full share of the SEC or B1G money they potentially could live off ACC money for around 4 years and pay the debt off assuming the interest (which is high right now) didn't eat them alive.
Click to expand...
lol what makes them think the BiG is going to give them a full share?
 
Wild Turkey said:
www.sportico.com

Florida State Taps JPMorgan for Equity Raise as ACC Decision Looms

Florida State is working with JPMorgan to explore how its athletic department, facing a $30M revenue gap, could raise capital via private equity.
www.sportico.com www.sportico.com

Interesting article:

1. States the FSU exit fee from the ACC would be 120 million dollars (this is a far cry from the 300mm that has previously been reported)
2. If they are going down this road then their lawyers can't find and out for the GOR
3. To do it they would leverage debt to buy themselves out
4. This kind of thing doesn't happen overnight so them leaving isn't imminent but it could happen within a year's time
5. They are staring at potentially 13 years of reduced revenue and could more than cut that in half (the shortfall they are looking at in the future is 30mm a year)
Note: If that 120mm number is wrong then it doesn't help them

If the buyout is 120mm and they got a full share of the SEC or B1G money they potentially could live off ACC money for around 4 years and pay the debt off assuming the interest (which is high right now) didn't eat them alive.
Click to expand...

still less money than @fordman84 's Ags wasted on Jimbo......
 
Best case they get is half share but now the math doesn't add up to leave
 
FSU looks to have a pretty good team, most calling for a top 10 finish. If that is the case, wouldn't it be best to avoid all these talks until next offseason? An FSU that finished in a good bowl, or maybe even the CFP, has a lot more bargaining power than they do right now.
 
TaikoTiger said:
120 million was always the exit fee, not sure where ppl kept getting 300mm from
Click to expand...

Losing their GOR for home games. The $120 million is just the exit fee. It doesn't buy them out of the ACC GOR.

Since the ACC would keep FSU's home game media rights via GOR, the total would be 'hundreds' of millions.
 
fordman84 said:
FSU looks to have a pretty good team, most calling for a top 10 finish. If that is the case, wouldn't it be best to avoid all these talks until next offseason? An FSU that finished in a good bowl, or maybe even the CFP, has a lot more bargaining power than they do right now.
Click to expand...
Because this is the highest FSU will be ranked all season
 
TaikoTiger said:
Because this is the highest FSU will be ranked all season
Click to expand...

Excited Word GIF by Desus & Mero
 
www.cbssports.com

Florida State considering partnership with private equity firm in effort to raise capital, per report

The Seminoles are exploring all pathways to leave the ACC as revenue gaps grow
www.cbssports.com www.cbssports.com

Here is another article with more accurate numbers:

The base buyout for an ACC program to leave the league early is $120 million, but buying out the grant of rights will be another large expense that could approach $500 million, according to some estimates. There are still 13 years remaining on the ACC's 20-year exclusive contract with ESPN.

Yeah they aren't going anywhere if it cost 500mm.
 
Wild Turkey said:
www.cbssports.com

Florida State considering partnership with private equity firm in effort to raise capital, per report

The Seminoles are exploring all pathways to leave the ACC as revenue gaps grow
www.cbssports.com www.cbssports.com

Here is another article with more accurate numbers:

The base buyout for an ACC program to leave the league early is $120 million, but buying out the grant of rights will be another large expense that could approach $500 million, according to some estimates. There are still 13 years remaining on the ACC's 20-year exclusive contract with ESPN.

Yeah they aren't going anywhere if it cost 500mm.
Click to expand...
not sure how accurate it is but I've seen some reporter on twitter saying they can use the immunity thing to get out of it in the state of FL.. the same way Tech hid behind to screw Leach out of his money
 
Thiefery said:
not sure how accurate it is but I've seen some reporter on twitter saying they can use the immunity thing to get out of it in the state of FL.. the same way Tech hid behind to screw Leach out of his money
Click to expand...
Won’t work because the conference can sue in North Carolina and argue NC law is the proper venue. FSU would challenge but that could take years meanwhile no one is going to take them until it’s decided. Plus what conference is going to want schools that don’t have to honor GORs? It’s not an issue in the SEC because there isn’t one. Don’t like it hit the door.
 
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