Should OSU Cowboys Use Big 12 Private Equity Money to Catch Up in NIL?

The Big 12 has struck a deal with two private equity firms and Oklahoma State can take advantage of the funding. But should it?

Oklahoma State coach Eric Morris. | BRYAN TERRY/THE OKLAHOMAN / USA TODAY NETWORK via Imagn Images

First-year Oklahoma State head football coach Eric Morris admits that his program is playing catch-up with a lot of teams when it comes to player compensation. The Big 12 Conference may be riding to the rescue.

On Wednesday, Yahoo Sports’ Ross Dellenger reported that the Big 12’s league’s presidents and chancellors approved a five-year agreement with RedBird Capital and Weatherford on a private equity deal that amounts to access to $500 million in money for the Big 12 and its member schools to use. It’s the first private equity deal for a major college conference.

There are several facets to the deal. But for schools like Oklahoma State, it can access $30 million in money to use as it needs. The question is whether the Cowboys should?

The Private Equity Question

Oklahoma State University football coach Eric Morris. | DOUG HOKE/THE OKLAHOMAN / USA TODAY NETWORK via Imagn Images

In a recent piece at On3 (subscription required), Morris acknowledged the challenges in taking over the program, noting that he doesn’t have as much money for his roster as other Big 12 teams. He just won’t use it as an excuse.

“We're playing catch up to a lot of people,” he said. “And even in our conference, we're playing catch up. But we won't ever let that be an excuse. I still believe in the developmental piece and aspect of college football.”

Every school that opted into the House settlement — all power conference schools were required to do so — had $20.5 million to share with players last year. That number is expected to go up a bi tin 2026-27. But how much the school spends to that cap, and how they spend it, is up to them.

A $30 million infusion of cash could certainly super-charge things for Morris. Oklahoma State doesn’t have to tap into the money right away. It has a year to decide if it wants to use the money. But there are good reasons for the Cowboys to steer clear of the money.

First, it’s a one-time only line of credit. It’s not as if the Cowboys and athletic director Chad Weiberg can come back to the well when needed. If OSU chooses to take the money, then that’s it. Nothing more.

Second, it’s unclear how the money would be paid back. It’s not “free money.” Private equity money never is. It’s likely the Cowboys would pay the money back out of its annual revenue disbursement from the Big 12.

Third, since there is theoretically a “cap” on revenue sharing with athletes, how much does an extra $30 million make a different to OSU long-term? It’s better off cultivating long-term investments that generate the needed money.

Dellenger reported that Big 12 sources told him that anywhere from two to six schools may tap into the money. For the reasons above, OSU is better off taking a pass.