Big 12 Gets $30 Million Line of Credit — Which Schools Will Burn It?

Added: 2026-05-08

[00:00:00]I am amazed at this big 12 private capital capital deal mainly cuz we told you it was going to happen. Um you guys all told me I was a jackwagon and I don't know ball money and remember all that where I said, "Hey, in one form or another it and the reason that I'm so incredible in brilliance when it comes to these kind of situations is not too strong of a word, right? I mean, you know, what me as a king with you know, the the the world I'm awesome is what I'm telling you.

[00:00:38]>> saying that. Yeah, you know, um you knew this was inevitable for the big 12 and everybody who piled on who told me, "Oh, they're going to sell out." And this is the exact right deal for the big 12.

[00:00:53]And I hope people get on board with this.

[00:00:56]This is the exact right structure, the exact right type of deal, the exact right way to execute a private equity deal is this one right here. And I think the the single biggest indicator of that is it's not mandatory participation.

[00:01:15]And it does not automatically cut multi-million dollar checks to the stupid people that run the universities in the Big 12 conference who know absolutely nothing about athletics.

[00:01:29]It doesn't hand the folks in Stillwater.

[00:01:32]It doesn't hand the folks in Fort Worth.

[00:01:34]It doesn't hand the folks in Waco or in Ames. All of these universities that do not want to spend money and do not want to win. It does not hand those people tens of millions of dollars to burn cuz that's what they will do with it. If you hand Oklahoma State a $30 million check, just light it on fire because they will have no idea how to leverage it and how to use it. I think this is absolutely a stroke of genius, Jake.

[00:02:07]Yeah, I mean, I think you know, participation being optional is obviously a good thing. You know, I you never want to do deals you know, that force participation at the conference level. I think that that's just [clears throat] asking for trouble.

[00:02:19]I I I think that the line of credit portion um I think is an interesting dynamic especially when you consider that you know, that that would inherently mean that, all right, you're using a line of credit which would bring things like interest into play and stuff like that. If you're using it, um shares of profit going away. Shares of profit, yeah. No, let's be real honest. Private capital capital guys don't give their money for free.

[00:02:50]They're not doing favors.

[00:02:52]When you when you opt in because the structure of this deal essentially says, "Hey, we're going to give the Big 12 essentially at the conference level RedBird Capital bought into the Big 12 as a as a stakeholder. The Big 12 is getting a cash infusion which is solely to expand their commercial operation. Their sales guys are going to get more money. They're going to hire more sales guys.

[00:03:19]They're going to make bigger deals.

[00:03:21]They're going to be able to do things like LED floors at a higher level.

[00:03:25]Those revenue streams we've always talked about because I don't think anybody here argues what Brett Yormark and his leadership team at the Big 12 have done. They've broken a lot of ground in a lot of areas and this is not the first time they've done it with this private equity deal cuz this is groundbreaking. This is the first time we've seen a conference deal with a private equity firm and really it's two private equity firms where you have kind of a pay-for-play situation. If you want to get in, you can get in. If you don't want to get in at all, you don't have to get in at all.

[00:03:57]And I think it's I think it's exactly what the Big 12 needed because I would also tell you with these lines of credit and if you own a business, you have lines of credit. I have multiple lines of credit.

[00:04:10]It's for instance, hey, we're the cowards in Waco who don't want to win anything, but we fired a coach and we don't have the money to do a national search.

[00:04:24]Well, now you can opt into this line of credit to fund your head coaching search and and the buyout for the coach that's on the way out the door. Except Baylor never fires their shitty football coach.

[00:04:34]He just gets to come back and steal money from them.

[00:04:36]Um but in my scenario, Baylor would actually, you know, try to win football games.

[00:04:42]Um And so you would access that line of credit to help you fund that new coach process.

[00:04:48]It's stuff like that. The other interesting part of this is that when the Big 12's next media rights deal comes up, RedBird and Weatherford Capital, the two private equity firms involved in this, will have a significant influence over that next media rights deal. In what form or fashion, what does that look like? That's going to be very interesting to see, but in the immediate term, I think it gives the Big 12 and its its athletic departments the opportunity to compete with the Big 10 and the the SEC should [snorts] they choose to do so.

[00:05:24]And that's the big caveat, but if you need new stadium facilities, if listen, if you need a new if you need a new piece of equipment and you want to finance that through private capital, you can do that now.

[00:05:38]Um all of that stuff. You need LED boards in your stadium, you can finance that through private capital.

[00:05:45]And it's sanctioned at the conference level. That's the kind of stuff we're talking about.

[00:05:51]Where, hey, we need to we want to upgrade our travel.

[00:05:58]Whatever it is you need. We need new iPads, right? Whatever it is you need, you can now access that capital through this deal and I think it's game-changing for the Big 12. Is it cynical of me that the first the first thing I think about when you talk about, "Hey, you need money to do something for your football department, use this line of credit, use this money." The first thing I think about is background checks for players.

[00:06:21]Is that cynical for me? That's certainly part of it. I don't know if it's cynical or not.

[00:06:26]Because you but Texas Tech's a good example. You look at Texas Tech, don't they already have a private equity deal?

[00:06:33]Apparently. I mean, they've sold their soul to Cody Campbell. Anyway anyway you slice it, Tech has sold its soul to Cody Campbell.

[00:06:41]Right? I mean, is that not Yeah, he's the guy driving the thing. I mean, that's if that's not what it is, that's certainly what it looks like. I mean, I don't I don't know how it would be anything else. Yeah, I don't see how it would be anything else.

[00:06:54]I I just don't see how how that shapes or how it would be anything else.

[00:06:59]But this is this is the competitive advantage that the Big 12 has been lacking. Yeah, I I I think >> Now Now, they just need to be careful with it, too, though, right? I mean, there's just responsibility. But now you have to go and leverage it. Mhm.

[00:07:14]You have to go and leverage it. And the question is, and maybe this is your point, what happens when you when you mismanage it?

[00:07:23]Because look, it's the Big 12.

[00:07:26]They're going to mismanage it.

[00:07:30]Baylor's going to mismanage Baylor is so poorly run. Baylor's poorly run. I look at Kansas on some levels and I'm like, I have no idea what you're doing in football.

[00:07:40]No idea. I look at what you're doing in Ames, Iowa, Stillwater, Oklahoma, Fort Worth, Tucson. Tucson has not been great managing their money.

[00:07:51]But doesn't this doesn't this give you the lifeline that that $240 million Abacus mistake you made several years ago?

[00:07:59]Doesn't this fix that problem?

[00:08:02]I mean, it appears so. I I some level, yeah. On some level, yeah, but but I I think that it's it's it it's just a the the ratios have to be correct, man.

[00:08:14]So if you get you know, you get a $30 line of credit to fund whatever your next endeavor is in athletics, the line of credit I saw a lot of people and maybe this isn't common knowledge. I don't know. I think most people understand this, but I I didn't feel like I saw a lot of understanding of this on Twitter yesterday when this came out that people were using the word loan yesterday to describe a line of credit and that's not what a line of credit is.

[00:08:44]That's absolutely not what a line of credit is. A line of credit is not a loan because a a loan is, "Hey, I'm going to give you a dollar and then you're going to pay that dollar back to me over a certain portion of time with fixed payments that have interest built into those payments." The line of credit portion, and this is this is what concerns me about it. I'm not saying it's a bad deal. I agree, you know, used properly, it gives you a competitive advantage and allows you to compete pretty much at the highest levels in college athletics. Like I I agree with that. But the line of credit portion is like, "Hey, we're Baylor. We're going to go use a chunk of this, 20 of the 30 million just as an arbitrary example, and we don't we don't really have a clear path to paying that off before the interest snowball starts to build." And and that's what you know, I I I just I just get a little bit concerned about that because again, if if if you haven't shown the ability to manage your money in a way that's allowing you to compete now, I you know, I I I I don't think that that means we can trust you to manage this correctly. And that's and that's the concern. I mean, we've never had in college football this situation before where you can have this type of financial arrangement. And so that inherently means we've never seen a school get in trouble with a financial arrangement like this. We don't know what that looks like. So, I just think you got to be You got to be diligent, man. You got to be careful with this. Use it, but use it with caution.

[00:10:15]I'm very curious.

[00:10:17]>> [snorts] >> I'm very curious how many schools opt into this capital infusion.

[00:10:24]I mean, it's a 10% interest rate, so it's not predatory.

[00:10:28]It's probably It's probably more affordable money than you can get in a lot of places.

[00:10:34]And I'm just curious to see how how that pays off. I believe they have a year to opt into it.

[00:10:40]And it does not sound like just talking to some people around the the universe here, it does not sound like very many will opt in.

[00:10:50]Which I'm actually glad to hear.

[00:10:52]I'm actually glad to hear it.

[00:10:54]Because I I just think And I'm trying not to be harsh.

[00:11:01]How many universities in this in this league have made good business decisions recently?

[00:11:10]Well, Texas Tech and BYU, but you know what the funny thing about those two universities are?

[00:11:15]Uh they don't need the money.

[00:11:19]They don't need the money.

[00:11:21]Well, who's made bad decisions?

[00:11:23]Well, let's see. Utah Utah could use the money.

[00:11:27]Uh Oak State Oak State could use the money. Baylor It's the all the usual suspects. Iowa State All of the universities that make bad decisions need the money.

[00:11:40]The few universities that make good decisions in this league don't need the money. You think UCF could use this money?

[00:11:49]Yeah, I think they could.

[00:11:52]But will they?

[00:11:54]We'll see. I don't know. I My biggest concern is that you do not have quality operators.

[00:12:02]You do not have quality operators. And if you're a savvy business person, you would you would use this money.

[00:12:12]If you were savvy, you understand that 10% is not exorbitant. 10% is a very nice number. Uh typical typical line of credit interest is going to be somewhere in the mid to high 20s. That's that's that's kind of your average range for like just a just a standard if you were just talking about like a standard credit card, you you would be somewhere in the mid to high 20s. That's typically what you see.

[00:12:38]Well, and you wouldn't use this like a credit card. Again, I want to make that very clear.

[00:12:43]You're not going to be 20s, but you're not going to be 26, 30%. But like I have a pretty significant line of credit in Amex that I don't use.

[00:12:56]That's it. 10.5%.

[00:13:00]I mean, it 10% on 30 million is pretty good money.

[00:13:05]Pretty good money. I mean, it is it it and it it depends a lot of it depends on hey, what's your credit score, blah, blah, blah.

[00:13:15]If you can get a standard boilerplate 10% 30 million dollar line of credit, you'd be almost crazy not to use it.

[00:13:22]Cuz you can leverage that.

[00:13:24]You can leverage that. And when you think about a line of credit, and we'll see how this one is specifically structured. Your average line of credit is hey, you've got $250,000 here to run your business.

[00:13:39]Okay, your copier broken, you need to spend two Gs on a new copy machine or printer or whatever.

[00:13:45]Okay, great. Access the two grand, pay it back, and now you've got $250,000 again.

[00:13:51]It's not a $2,000 loan where you're like, okay, hey, uh copier broke, can I get two grand? All right, let me run your credit and see if we can approve you.

[00:14:02]It's not like that. It's available to you for when you need it and for what you need it. No questions asked.

[00:14:09]30 million, 10%, it's available to you.

[00:14:13]Let's see how this is structured and how people use it.

[00:14:16]I'm very curious to see how people will use it. If you're smart, if you are smart, you will use this money to make you more money.

[00:14:27]You will use this money to expand your global revenue generation at the university level.

[00:14:35]So, you'll take that 30 million dollars, and hey, maybe you you hire, you know, sales teams for football and basketball or women's sports, whatever it is.

[00:14:49]Take that 30 million dollars, and you leverage it to make you more money.

[00:14:55]It's as simple as that. And I say if you're a Big 12 university, that's what you should be doing with this money.

[00:15:00]Make this money make you more money.

[00:15:03]Please do not Please Please do not use this money to buy new massage tables.

[00:15:14]>> [laughter] >> Please do not >> [clears throat] >> use But you know what I mean? Like don't don't don't use this line of credit to buy tape. Yeah, me and Austin >> we need we need some more uh KT tape for the uh badminton team.

[00:15:29]If you're going to use this money for badminton tape, don't use this money.

[00:15:33]You know what I'm saying? Like Yeah. No, for sure. I mean, I I I think that I think that there has to be You know, you got to make good decisions with it.

[00:15:41]And I And I think it's it's It's just like anything else, man. The top end schools aren't going to need the money.

[00:15:46]Other schools may want it.

[00:15:48]Uh you know, but it's going to be some It's going to be a school in the middle who's not winning right now, but has historically won that's trying to get back that will use this in a savvy way to help themselves. And And I you know, I I The Big 10 had an opportunity to to work a deal like this, you know, uh a couple of months ago. You guys remember talking about that, and that didn't quite pan, I think, the way a lot of people wanted it to. And so we'll see We'll see who embraces this and who doesn't, you know, and what what what the Big 12 really does with this, cuz the conference is also getting a 12 and a half million dollar infusion, which is a nice number. That That's definitely not You know, that's that's a good That's a good amount of money. So, you know, we'll we'll we'll see what they do with that. But But the Big 12 just needs to Again, it all all this stuff comes back to what do you do on the football field, man? Can Can you win more? Can you improve? Can you up your chances?

[00:16:41]Because ultimately, you know, I I again, I love the innovation. I love Brett Yormark, but that is all that matters. I I agree.

[00:16:48]Like it what what Like that's cool you guys are innovating, right? That's great. But if you know if it doesn't make a difference, I mean, what what are we really talking about?

[00:16:59]Yeah, I would agree with that. Gabriel A, new channel logo. Interesting. Yes, it is.

[00:17:05]Yes, it is. New banner icon as well.

[00:17:08]Nice. I rock with this. Good stuff, Jake.

[00:17:11]>> Wasn't me, dude. Wasn't me, bro. Don't You're I appreciate the cred, but it wasn't me. It was the comment section yesterday with AI, and then Money took the AI logo that was submitted to us and put it into chat GPT, and we grinded, and now it's there.

[00:17:27]>> better.

[00:17:29]Jake's all in on it. What Or are you Claude now? I can't remember.

[00:17:33]Depends what you're doing.

[00:17:35]I mean, I like Claude a lot.

[00:17:37]Okay. Hit the like button.

[00:17:40]Uh a hobo hits us like a hobo hits a sandwich.

[00:17:44]Not sure I get that one, Mike. I would agree. Good morning, Money and Jake to Jake at two shakes like button, everybody. Yes, please hit the like button.

[00:17:52]Uh really helps the channel grow. Jake's going old school James with the Syracuse and Oak State colors. Money with the damn dirty Notre Dame shirt.

[00:18:01]It is what it is, right?

[00:18:03]It is what it is.

[00:18:05]I've I've come to a determination that Roeback is way overrated. Not worth the money.

[00:18:11]Not worth the money.

[00:18:12]I was looking at Cuz I I'm in the market as I continue to defat my frame, I'm in the market for quarter zips constantly, cuz I wear them every day. I'm I'm not paying $140 for a quarter zip.

[00:18:28]Look, I'm not doing that.

[00:18:30]There There's just no chance I'm doing that. Uh I am glad teams don't have to be involved, because BYU will not get in. BYU has no need for private equity.

[00:18:40]>> BYU Okay. Dude, BYU has so much money that they they they don't That does 30 mil doesn't even get their attention, brother. They've got so much money coming from that little institution that And sign peak. Yeah, that that, you know, they don't need like it's not even a thing to them. This is nothing to them. No.

[00:19:03]No. The single greatest real estate entity in the entire country, BYU and the Mormon church. Yeah.

[00:19:10]Come on now. Yeah, I like that a team can opt out and opt into an amount they want, not a mandatory sum for all.

[00:19:17]Totally agree.

[00:19:19]Uh BYU is a school that goes by the you eat what you kill model, and they don't operate in the red. I would agree with that.

[00:19:27]If they Listen, the biggest issue in this conference is you don't have quality operators.

[00:19:35]You don't. And then you get Texas Tech, and you get BYU.

[00:19:41]And they win games, and they're at the top of the conference. Funny thing is, they also make a lot of money.

[00:19:48]They both have elite stadiums. They Texas Tech is coming, but BYU has got to leap facilities.

[00:19:57]I mean it's it's why you're able to compete with other major universities to keep Kalani Sitake.

[00:20:05]It's why you're able to go and get the best high school basketball talent at a premium price.

[00:20:14]Because you have money to leverage to make you more money.

[00:20:19]But when you're a crappy operator, again, Baylor, you fire your athletic director who put his hands on an athlete and then you don't fire the football coach because you don't want to pay to run a national search.

[00:20:33]So you hire Scott Frost and your team in Orlando still sucks.

[00:20:40]That's who's running this league.

[00:20:42]That's who's running these universities.

[00:20:44]They're not making pragmatic decisions.

[00:20:46]Why would you hand them $30 million?

[00:20:49]Throw it in the fire. It it'll get better use as kindling than if you hand it to to Baylor. It will be better purposed as kindling than if you hand it to Baylor. The Wolf of Wall Street with Can't do it.

[00:21:05]Cannot do it. Muldoon, good morning.

[00:21:08]Most look leaner and black. You look really lean in Notre Dame navy blue.

[00:21:12]Well, thank you. I appreciate that.

[00:21:15]Seven or excuse me, 6 lb from our goal weight.

[00:21:19]Kenneth Maynard, they sure love to gamble in the Big 12.

[00:21:23]The PC deal will either be a huge winner or disaster. It has no way to be a disaster.

[00:21:30]What is a disaster?

[00:21:34]I don't think there is there is no I don't think there's any eventuality where this is just an incredible disaster. And if somebody wants to tell me what that looks like, I'm here for it. Well, it would be spending the money and then being irresponsible paying it back. That would be the the inference.

[00:21:53]Yeah?

[00:21:54]I mean You're paying it back.

[00:21:59]There's not a I don't think there's in these situations there's not a route where you can take the money and not pay it back.

[00:22:07]There's just there that doesn't exist in these in these areas in my opinion. Good morning, Lopes man. Gabe, good to see you. Ryan Duffy, we might use it at Tech to fund background checks on players.

[00:22:18]I've heard that.

[00:22:19]>> [laughter] >> They could opt in for some money to get a fire Dave Aranda billboard help to get Neil Brown out. There you go.

[00:22:29]There you go. Okey light got in line yesterday. Okay?

[00:22:35]Okay, Sergeant Green, hello.

[00:22:37]Uh Achoo warning.

[00:22:41]Okay. I'm curious which schools will be buying in. Interest on any money borrowed sounds like it's close to 10%.

[00:22:48]Pretty high interest for such a large loan. It's not though.

[00:22:52]>> dude. I'm telling you guys dude, you got to get over the 10% thing. The 10% thing at $30 million is not that high of a number. It's it's a it's a No. a a pretty reasonable rate um when when you look at this deal. I mean what did what did you want it to be like 5%? Like I I I I don't know what you guys thought this would be. The risk you're paying for risk.

[00:23:14]You are paying for risk. When you when you take a $30 million line of credit, there's significant risk to the to the lender.

[00:23:25]Redbird Capital.

[00:23:27]10% is is a mitigation number.

[00:23:30]Um [snorts] you know, was it around $12 million that they were investing in the Big 12 for an office, not the individual teams?

[00:23:37]Correct?

[00:23:37]>> Yeah, 12 and 1/2. Yeah, they are not investing in the individual universities. They made a capital infusion into the league at the league level for revenue generating infrastructure.

[00:23:52]Makes sense.

[00:23:54]Uh line of credit {slash} loan interest is still pretty high. Yeah, I I would encourage you to rethink that.

[00:24:03]But you know, Ryan Duffy, Tech might need it for basketball. Yeah, did you No, how about baseball?

[00:24:10]I don't know if we still have that video. Did you guys Did you guys see and I guess we do not.

[00:24:17]But the baseball coach at Texas Tech sat up there and was like, yeah, we're broke.

[00:24:25]We're broke we're broke. We're done.

[00:24:27]We're broke.

[00:24:28]We can't compete.

[00:24:30]Like just and like I felt like he was on the verge of tears.

[00:24:36]How at Texas Tech is the men's baseball program broke?

[00:24:41]Softball's not broke.

[00:24:43]Baseball's struggling. I mean that's why I say like you know, the the the Cody Campbell dynamic is is a really interesting one because I I feel like there's this whole deal where everyone just thinks that if you have money, that means that you know, you're going to be you know, you're going to be in a great place across the board and I just I just I just don't agree with that. I mean you know, the the the you know, the the Texas Tech baseball coach sitting here, you know, talking about how they're broke is is really not a good look for Cody Campbell. I mean your resources if you really want to look at an SEC roster I mean you can do the research on what they're putting in it.

[00:25:28]And we haven't had that but but I'll tell you this since NIL has started I'm I'm guilty as anybody that thinks we could do it the way we I might I can go back to the night before NIL started. Makadales called me and said, hey, I'm going somewhere.

[00:25:58]It would have taken $50,000 to keep him.

[00:26:03]Jesus.

[00:26:05]I like he's emotional there.

[00:26:09]Yeah, they $50,000 to keep him.

[00:26:15]How is Tech baseball broke?

[00:26:19]It's a very interesting question. It's a very interesting Yeah, I mean it's pretty ball breaking when you know that you're not going to be able to compete cuz you don't have enough money. Yeah.

[00:26:28]Yeah.

[00:26:30]You know, like it is Roche, mutual funds pay out 13% and friends only funds pay 30 if you know a fund manager. There you go.

[00:26:42]There you go.

[00:26:44]Right? Coach looks tired. Yeah, he looks worn out. Right? Jake looks like a creamsicle.

[00:26:50]Yeah, not everybody can do it but some of us have to.

[00:26:54]Some What do you mean you that was your only clean shirt today or what's the story? I mean I got several of them but you know, just working back in the collars.

[00:27:02]You shouldn't do that again. 10% isn't that bad at all. It doesn't look bad.

[00:27:08]You're just fat.

[00:27:10]What do you all think this is the same as 2.9% on a 72-month deal James got on his Honda Civic? Exactly right.

[00:27:17][laughter] Yeah, here's the problem, dude. James didn't get 2.9%. Bro is probably at like 18% interest.

[00:27:25]What do we think James' credit score is?

[00:27:28]I don't even want to guess at that.

[00:27:31]Uh Although I mean God is his banker.

[00:27:34]>> More or less than 600?

[00:27:38]Oh, more.

[00:27:40]He He drives a Honda Civic. He can't be broke, can't he?

[00:27:43]You know, uh 10% isn't that bad in the grand scheme of things. No, it's not.

[00:27:48]Uh speaking of James, as a as a fan at TCU >> [laughter] >> See, that's He's commenting from an account titled Texas State James and starts the comment with as a fan of TCU. I mean that's just what that's that's what we're doing here, man. I hope they use the money to expand the rectory.

[00:28:17]Well, I'm taking an accelerated course in finance. So this line of credit's incredible.

[00:28:23]I it yeah. Yeah, I mean it's demon and stuff. I can see the ACC doing the same thing but perhaps getting more because of the brand power.

[00:28:34]Mhm.

[00:28:36]I can see Virginia Tech, Cal, Pitt, and NC State doing it.

[00:28:40]Why would you think those guys have brand power?

[00:28:44]And why would you want more than 30 million?

[00:28:46]It's a line of I think are we are we really not clear on what a line of credit is?

[00:28:54]A line of credit is not a loan.

[00:28:58]A line of credit is not, hey, here's $30 million, you have 30 years to pay it back like your mortgage.

[00:29:07]A line of credit is and it sounds like in this case it may be a one-time use but a a line of credit essentially is, hey, you can use up to $30 million for whatever you need.

[00:29:23]It's approved. There's no It's a line of credit is very different.

[00:29:29]Very, very different. And if Virginia Tech, Cal, Pitt, and NC State use it, I'd be shocked.

[00:29:36]I just don't I I hope people understand that private equity deals and as as long as I can breathe air, I will say this.

[00:29:51]Private equity deals don't fix stupid.

[00:29:56]They just don't fix stupid.

[00:30:00]That's and that really is the difference between the SEC, the Big 10, and the Big 12 in the ACC.

[00:30:11]The ACC and the Big 12 think we're a little we're just little fish in the pond trying not to get eaten by the shark. I've been a rich man and I have been a poor man. And the the thing you can tell is the people who have money understand how to use a $30 million line of credit.

[00:30:30]The people who don't have money have all kinds of questions. Well, When we buying the next Escalade, money? I mean, can I get some new Cavariccis with this money?

[00:30:42]No. How about a new 20-gallon hat, money?

[00:30:46]It's it's not something that you just willy-nilly use.

[00:30:51]It's an opportunity for you to make money.

[00:30:56]But people who don't make money don't know how to make money.

[00:31:01]And I know that sounds simplistic or but when you don't make money and you don't have money, you don't understand how to leverage money, your own money, to make more money.

[00:31:14]And it's deals like this that expose people like that.

[00:31:18]As simple as I can say it.

[00:31:21]Sub-600 credit for James. Nah, I don't think so.

[00:31:26]He puts his Bucky sandwich on a line of credit.

[00:31:30]That is what the Big 12 would do.

[00:31:33]Brisket for everybody, boys.

[00:31:36]Right? Was just talking about your video the other day. Nice to see you pop in, Aaron Wilson.

[00:31:43]Oh, Aaron Wilson's here. Is that Is that the Aaron Wilson. Oh, look at that. He's been a member for 37 months. Welcome back, dude. I mean, this is this is incredible.

[00:31:52]>> Whoa.

[00:31:55]>> [music and bell] >> Bro, you are missed on this show.

[00:31:57]You are you are missed on this show almost every day.

[00:32:02]Like it is how it Tell us how your life is, mailman. Yeah, give us some life advice, dude. Aaron Wilson is a legend on this show. And Aaron Wilson has had some struggles in his life. We all raised money for what, a water heater, I think, at one point? Or was it HVAC?

[00:32:22]I think we raised money to fix a heating unit or something or in your dad's house. Like what is what is going on in your life?

[00:32:32]How are you?

[00:32:34]I hope you are healthy, happy, and well.

[00:32:38]Uh the American will likely be the first G6 with a PC deal. Prenetti thinks similar to your mark. Okay.

[00:32:46]Doing a private capital deal would be a very Pac-12 thing to do.

[00:32:53]Are you sure Texas State James isn't me?

[00:32:55]Are you sure?

[00:32:56]>> Hi, this is James. Welcome back.

[00:32:58]>> we James, we had no idea, dude. I mean, you have so many burners that I mean, I just I get confused. I mean, come on.

[00:33:04]>> You're really telling me you think people believe that's you? No, they don't. That's the best part of it.

[00:33:14]We all know it's not you. Money, dude, Oak State James' right hand is actually James. You know, so what? Okay. All right, true. I Okay.

[00:33:27]Bucky's and Magic City probably does more damage to his wallet than his gut, money. Probably.

[00:33:33]>> [laughter] [clears throat] >> Probably. James lives off of Affirm and Klarna. Affirm's a good to Again, Affirm's a tool. A line of credit is a tool. I've used Affirm. Mhm.

[00:33:47]I bought all my Peloton stuff on Affirm.

[00:33:51]It is absolutely a tool if you use it well and responsibly.

[00:33:56]Uh what do you all think about BYU staying out of this PE deal? I don't know why they would opt into it.

[00:34:02]Yeah, there's no reason for them to opt into it.

[00:34:06]I think it's a tool available to them should they choose to use it. I just think it's pretty cut and dry for the situations. I mean, you're you're either somebody who who likes this kind of opportunity and has been waiting for this to come down the pipe in the Big 12 or you're like, yeah, cool. Like maybe some schools will use it, but we're in a really strong position. So.

[00:34:24]Uh I'm trying to get ready for work and I'm catching all these strays. What the heck did I do to these people?

[00:34:30]>> [laughter] >> Bro, what didn't you do to these people?

[00:34:34]That's the question you should be asking, dude. Beyond the fact that you're a fan of 37 schools, um you're it's just who you're it's your role on the show, man. Yeah. Hey, what's your credit score, by the way?

[00:34:48][laughter] KNOW YOUR ROLE AND SHUT YOUR MOUTH. UH and here you are from a burner account now. Please.

[00:34:58]This is not actually Oak State. I think he's a Syracuse fan, James. This is not actually him.

[00:35:06]Obviously not. This isn't him. He This is a parody account. Don't lie to me.

[00:35:14]As an O Q light fan, I hope they use the money to build a Bucky's on campus.

[00:35:19]Rollers rule.

[00:35:21]>> [laughter] >> I agree, James. Rollers rule. Ask Jake.

[00:35:25]Jake likes fecal matter on his taquitos.

[00:35:27]>> Dude, I I mean, that's just really good material, dude. That is really well done.

[00:35:34]They want to know, James, if you have more credit than BDM play a status.

[00:35:39]Yeah, you know.

[00:35:40]>> Jesus, I don't even want to know what Big Daddy Magic's credit score is.

[00:35:43]>> James, can you just and with your credit score, can you just give us the category with which your credit score falls in?

[00:35:51]Like prime, super prime, subprime, like just give us the category, the label.

[00:35:58]That way we at least can then speculate on your car. You know what I mean?

[00:36:02]That'll help the show move forward.

[00:36:04]>> What do you mean speculate on his car?

[00:36:06]Well, because you're sitting here saying that that buddy's got a plus-600 credit score because he was able to get into this thing, but I'm saying this thing doesn't doesn't reek plus-600 credit.

[00:36:19]This is many, many people could get into this situation.

[00:36:22]>> I'm just All I'm saying is I'm hoping that James paid cash for this car.

[00:36:27]Right? Like this car is not this car, right? I mean, we're in the same We're in the We're We're on the same page, right? Like this car is not 600 credit material, right? Just the same way this car wouldn't be like 750 credit material. You know what I mean? Like that's two different things. Let's look at our credit score.

[00:36:47]I'm willing to tell you what my credit score is cuz I happen to know it off the top of my head, but I'll just verify it.

[00:36:52]Mhm. Trust but verify. That kind of material.

[00:36:54]>> Trust but verify. Right. Trust but verify.

[00:36:58]How many different How many different um It went up. How many different outlets do you look at to gauge your credit score?

[00:37:05]Cuz cuz like you can look at it like, you know, you've got, you know, all the credit card companies will tell you what it is, you know, Wells will tell you what it is. Like >> much exclusively trust Chase. Chase and City um are usually the two closest. Mhm.

[00:37:21]Um Yeah, I'm not going to tell you my credit score cuz it'll piss people off, but >> [laughter] >> Well, it uh it starts with a nine and that's not my fault, okay? It's just not my fault there's a one-percenter in this life.

[00:37:40]>> No, I'm not James Comey.

[00:37:43]But it does start with an 86. Do you guys have any wine? Kick it, we'll flow.

[00:37:49]So, and I do This is my car. So, you you do the math.

[00:37:56]I am a frog. You're not a frog. No, you're not. You are not. God.

[00:38:02]You're not.

[00:38:03]>> I grew up a Syracuse fan. When they changed to the orange, I left. My credit score is none your business. My credit score is 867. What's yours?

[00:38:13]>> [bell] >> And now, Money credit score is shells on a beach. Yes, it is.

[00:38:19]>> Correct. Bailey Deatrick, and now we have orange man James. Yes, we do.

[00:38:24]Right. Yes, we do.

[00:38:26]You know.

[00:38:28]Uh match-up throw down. I was just trying to be nice, but a Civic is definitely a buy here, pay here special.

[00:38:33]It looks like that. [laughter] It does look like that.

[00:38:37]>> When when do you think you'll upgrade the car, bro? When when do you think you're going to get into a more comfortable situation, a more modernized situation?

[00:38:45]If ever.

[00:38:46]If ever. A great point. Yeah. You know.

[00:38:49]Um yeah. It's a You you can take an intensive class on your credit score if you like. Uh you're a damn cowboy, James. Come back to your roots. Dress up as Pistol Pete. That's what I'm saying.

[00:39:02]I'm a frog.

[00:39:04]Oh, look. Orange man James. Bucky's in Syracuse would be awesome.

[00:39:10]Notice in the Notice in the background, Money's in the in the background. Oh, it's been updated. Okay. And notice that James has a collar on.

[00:39:19]Yeah, here's the problem with that graphic in the background though, dude.

[00:39:22]Money's not a pep guy. Not a pepperoni dude. Do you got to you got to update that. Pepperoni's disgusting.

[00:39:27]>> Yeah, pepperoni's ass.

[00:39:28]Easily the worst. What's up, Alex? Good to see you.

[00:39:32]Um I get my free score from each of the three credit bureaus each year. You You should be able to know your your credit score can be updated every day.

[00:39:42]Mhm. I think isn't Capital One the one that updates it every single day?

[00:39:47]I get it once a week from City.

[00:39:49]And I track it very closely. I have alerts.

[00:39:54]My credit's locked, so you can't get like you can't get new loans or So, you know.

[00:40:02]Oak State fired Casey Shrum. That's just wrong. No, it's not.

[00:40:07]Oak State's incompetent and embarrassing as an athletic department.

[00:40:12]Um frog fan James, more like fraud fan James.

[00:40:18]I mean, I I wouldn't say it's fraud. I just think that [clears throat] bro tries to be a fan of like 80 different teams.

[00:40:25]Yep. If y'all buying car your car on credit, you're broke. See, and again, this is a philosophical conversation.

[00:40:31]>> dude. That's exactly >> Why would I hand BMW $120,000?

[00:40:38]When they give me 4% for a loan.

[00:40:45]Why would I hand them Why would you and this is the premise I've always I've never understood about people are like, oh, we should cash everything.

[00:40:52]Why would you give to double down on money's point. Why give $120,000 on a vehicle or whatever the amount is, right? It could be a $30,000 car. It doesn't really really even matter, right? But like why would you give five or six figures to a a loan or a dealership when when you could you're not going to keep that car through the life of the loan nine times out of 10.

[00:41:17]So, you're giving them $120,000 to then try to recoup that money that you're never going to get back because the car depreciates. Why would you do that? Instead, why wouldn't you just be I mean, what? If you own I mean, honestly, like if you own the car, like you'll probably own that car 50 months, maybe Maybe.

[00:41:37]>> maybe. You know, like so you're talking about let's just round numbers say 50 of the 120 you'd actually pay.

[00:41:47]Why would you give them 120 grand in a lump sum? That's that's literally dumb.

[00:41:52]Don't understand it.

[00:41:53]>> I'll never understand it, man. It's it's so silly, dude.

[00:41:57]Fraud. I'll be at class in Fort Worth tomorrow. How is that fraud? Because just cuz you're a student there doesn't mean that you're some die hard or Dude, it's convenient.

[00:42:09]That's why you're going to TCU.

[00:42:11]It's it's convenient. It it lit- literally, it is as simple as that. It is convenient.

[00:42:18]>> Yeah. You're not Let's not play this tomorrow like, "Hey, money." No. No.

[00:42:24]You're only there because it feels cool to be a TCU fan and you want to fit in with your brother in fellow semen demon people.

[00:42:33]Come on, dude.

[00:42:34]>> Great. That's cool.

[00:42:36]You should I you're a Syracuse fan.

[00:42:41]Simple as that. Congratulations, James, for breaking the record of who has the most burner accounts. Exactly right.

[00:42:50]You know. If they giving you 4%, you overpaid for the vehicle. No, I don't think that's the case.

[00:42:56]No.

[00:42:57]Actually got it under actually got it under appraised value.

[00:43:02]You know.

[00:43:04]You know.

[00:43:05]Uh the Big 12 has made a private equity deal.

[00:43:08]Um StreamYard's.

[00:43:15]The Big 12 has made a private equity deal um that essentially injects 12 and 1/2 million dollars into the the uh Big 12 commission uh commissioner's pockets to make more money. Um the league office gets 12 and 1/2 million dollars that they can use to facilitate more money-making operations.

[00:43:36]Uh the league did this deal with RedBird Capital and I think this is the most important part. RedBird Capital will have a fi- a a significant voice in the next media rights deal that the Big 12 does in 2030. And let's not forget they hold a significant operating stake in Paramount, which will soon obviously with CBS own TNT.

[00:44:03]Do you think that relationship's going to come in handy in 2030?

[00:44:07]I would say that it would, even though the Big 12 right now is already in bed with ESPN and Fox, which is exactly where you want to be.

[00:44:16]And that's why they have a very good TV deal. But for the at the commissioner league level, I think this is as good a deal as you could have gotten. And I think if you were at the university level in the Big 12, the part of this that makes the most sense is that there is a $30 line of credit that is optional for every university in the Big 12.

[00:44:41]It is a one-time opt-in here's $30 payable on a 10% interest rate.

[00:44:50]I think it's exactly what you want. And I would tell you there might be there there might be two, maybe three universities in this league that opt into that line of credit. And I I would tell you it certainly would not be BYU and Texas Tech, who are well-heeled.

[00:45:09]But I would be shocked if it was more than two to three universities that opt in, Jake. Yeah, I mean, I just think that it's it's it's such a Again, as we've had this conversation this morning, I just think it's such a situational thing. You know, it's it's more like I I'm sure we're all on the same page that this conversation for these universities is more than just like, you know, hey, we want to buy this or buy that. I I I think that there's there's you're basically trying to put a plan together for the next year to three years. If you're if you're interested in using it. Okay, if we use this, what do we want to use it for? Are we using it for something that costs us money or are we using it for revenue generation? Like how are we you know, how like what what are we thinking we want to leverage it with? And then from there, it's like, all right, cool. Like if we spend again, let's let's say they spend somebody would spend like 20 out of the 30. We spend $20 you know, that out of the available 30, what's our plan to to pay that back and how does that impact what we're already doing? And and so I just think that it's it is it is for the universities an opportunity, but at the same time, if you're somebody who hasn't been great with the money portion of athletics to up into this point, I'm not sure that there's probably a high comfort level with using this. And and I think the the I would agree that some of these universities could really use this to bump up their their their revenue. That that to me, like if you're Baylor or if you're one of these schools that's struggling financially, that to me is how I personally would use this. I would say, okay, cool. We have this opportunity, this cash influx that we can use in the form of a line of credit, how can we take that money and build a bigger war chest that we can then go and compete with? And and that to me is really where where the league needs to go. And I would guess, you know, speculating here, but I would guess that if you're Brett Yormark, you would have kind of sent that message to your member institutions. Like, hey, this is this is not just so you guys can go and buy equipment or something. Like, yeah, you could do that, but this this the big opportunity here is to grow your funding. Is to get, you know, into a better place financially, so when you want to fire Dave Aranda five years ago, you can. You know, and you can afford the buyout and you can move on from him and you can get into a better place. And that I just think that it's it's at the conference level, it's cool. The optics are good around it, you know, it's it's innovation. It's what the Big 12's been known to do.

[00:47:38]Um but I'm just going to keep hammering the point home just like I have since Stanford and the Pac-12 situation came up.

[00:47:48]Dude, if you're not going to win, nobody cares.