Tampa is poised to become a key hub for private equity in college sports.
Weatherford Capital announced on Wednesday the launch of Collegiate Athletic Solutions (CAS), described as a “purpose-driven, dedicated capital and business-building platform” tailored for athletic departments. The leadership team includes Drew Weatherford, a former Florida State quarterback and current trustee, and his brother, Will Weatherford, the chair of USF’s board of trustees. Both brothers played football at Land O’ Lakes High School. With offices in Tampa and Dallas, Weatherford Capital is collaborating with RedBird Capital Partners on this venture.
Unlike some private equity models, this initiative emphasizes generating new revenue rather than taking a direct stake in athletic departments. This approach incentivizes the Weatherfords and RedBird to leverage their expertise in media rights and events to expand revenue opportunities, reducing risk for the schools involved.
This announcement comes amid a tumultuous period for major college sports. The NCAA is on the brink of a multi-billion-dollar settlement related to player compensation lawsuits. Under the settlement in House v. NCAA and similar antitrust cases, top schools are expected to start sharing $20 million in annual revenue with players. The ACC and Big 12 both approved the settlement on Tuesday.
“We are witnessing a late-stage competitive divide between athletic departments and programs,” Drew Weatherford stated. “Conference realignment, diverging media rights deals, and the rise of name, image, and likeness (NIL) agreements and revenue sharing are creating significant financial disparities at both the university and conference levels. History shows that universities that strategically invest in their athletic departments consistently outperform their peers.
“Our mission at CAS is to provide athletic departments with a unique capital solution, enabling them to invest strategically and compete at the highest level during this significant paradigm shift.”
Private equity’s role in college sports is a major topic of discussion. Florida State University, for instance, has been exploring this possibility for months. Tim Pernetti, the incoming commissioner of the American Athletic Conference, has described private equity investment in college sports as “inevitable.”
