Brian Santiago Rules Out Private Equity for BYU Athletic Department

BYU's new AD took a firm stance on private equity investment

Lavell Edwards Stadium as BYU takes down Arizona | BYU Photo

Private equity has become a hot topic in college sports. As schools have looked for infusions of cash to fund revenue share with athletes, private equity companies have lurked around, looking for potential opportunities to make returns on their investments through college athletics.

The Big 12 conference flirted with the idea of selling a percentage of its ownership to private equity companies in exchange for cash that would be used to fund revenue sharing and other initiatives.

BYU director of athletics Brian Santiago made it very clear that BYU will not participate in private equity investment. Santiago joined the Divot podcast for a long form interview that included the topic of private equity.

"That's something that everybody knows [that we will not participate in private equity]," Santiago said. And, when it comes up in the room, even in the Big 12 room as they have looked at a lot of different things, it's pretty clear, and I just remind everybody BYU will not be participating."

Santiago believes that is a strength for BYU. "That's a strength for us. Our governing board is for us very, very important, and we're going to live within the principles that we've been taught, and we're having great success doing it that way," Santiago said.

Back in December, multiple reports indicated that the Big 12 was working towards a deal with RedBird and Weatherford Capital worth $30 million per school. However, the Big 12 was not willing to sell stake in the conference. Instead, this deal would work like a line of credit that each school could tap into as needed. Importantly, each member institution would not be required to take out any money.

Based on Santiago's comments, it's safe to assume that BYU would not participate in borrowing money from the line of credit. BYU is owned by The Church of Jesus Christ of Latter-day Saints. The church, as an institution, does not borrow money. Instead, it funds the construction of new buildings, churches, and temples with cash.

BYU's arch rival Utah is on the opposite end of the spectrum when it comes to views on private equity. Utah was the first school to approve a deal with private equity that could be worth up to $500 million. In exchange, Utah would give up a minority ownership and would need to pay the money back over time. The deal has not been finalized.

Only time will tell how private equity impacts college athletics and whether BYU's stance on private equity helps, or hurts, their ability to compete at the highest levels.