What the Big 12's Private Capital Deal Means for BYU

The Big 12 is reportedly entering a private capital deal that will give schools up to $30 million

Dec 6, 2025; Arlington, TX, USA; BYU Cougars running back LJ Martin (4) celebrates with teammates after scoring a touchdown during the first half against the Texas Tech Red Raiders at AT&T Stadium. Mandatory Credit: Kevin Jairaj-Imagn Images | Kevin Jairaj-Imagn Images

On Wednesday, Ross Dellenger of Yahoo Sports reported that the Big 12 had "struck its long-discussed private capital deal." The deal is optional for Big 12 programs that are looking for capital to invest in their athletic departments.

It's important to note that the Big 12 is not giving up a portion of its ownership. Per Dellenger, "The capital partners will hold no ownership in the league and the deal will not change the operation or governance of the conference."

The deal is essentially a line of credit worth up to $30 million per school. If Big 12 schools want to access the capital, they can access up to $30 million each, but they will have to pay the money back over time at a 10% interest rate, according to the report.

Not every school will accept the one-time cash infusion. Dellenger reports that "as many as a half-dozen programs plan to take the money." If six programs take the money, that leaves at least 10 programs that will not take the money.

You can firmly count BYU among the group that will not accept the private capital. BYU AD Brian Santiago made BYU's stance clear in an interview earlier this month. 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."

"That's a strength for us," Santiago added. "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.

As a principle, BYU does not borrow money. BYU is owned by The Church of Jesus Christ of Latter-day Saints. The church is disciplined with its finances and does not borrow money. The church funds major expenses like the construction of buildings, churches, and temples with cash.

The BYU athletic department is not funded by the church, either. However, BYU does adopt the same stance on debt. It's also important to note that the BYU athletic department is self-sustaining and operates in the black to be able to maintain its self-sustaining model.

While BYU won't accept private capital, they will need to find ways to increase revenue to keep up in the competitive world of college athletics. In the era of revenue share with athletes, higher revenue can drive on-field success. BYU will be tasked with competing with other Big 12 schools that will be aggressive in the ways they fund their rosters. The private capital deal is just the latest example of that.