KC Smurthwaite is a consultant for Athletics Admin, specializing in revenue generation in sports. He has almost two decades of experience in the sports and entertainment industry. He also teaches sports management and journalism as an adjunct professor. Follow him @KcSmurthwaite or reach him at [email protected]
Let me start with a confession: I may be wrong. You might be wrong, too.
I am no expert in private equity, but I do have something maybe more valuable — experience. Over the last 12 months, I’ve been in rooms where private equity pitches were made to athletic departments and sports organizations. I won’t spill the who, what, or where, but I will use examples to help paint the picture of what’s happening. And trust me it’s absolutely fascinating.
When most of us think of private equity, we imagine Wall Street suits swooping in, taking a stake in the company, slashing costs, and demanding changes with little regard for the culture. That’s not what’s happening here. In fact, over the last six months, these firms have shifted strategies. They’re no longer trying to own college athletics — they’re trying to facilitate it. Now, I don’t think they were ever really trying to own it, but you get the picture. Think of them less as Gordon Gekko, and more as… an extremely well-funded third-party vendor. In some cases, even a bank for cash-strapped athletic departments.
And here’s the kicker: Many of these conversations aren’t being led by faceless financiers or somebody who resembles Harvey Specter. They’re being led by former student-athletes or industry veterans who understand the quirks and culture of higher education. They see what we all see: The NCAA isn’t just a broken system, it’s malfunctioning. Undervalued. Spread too thin to maximize its biggest products. It’s operating underneath a banner of higher education that prioritizes (as it should) education and graduation.
Enter: The FCS Playoff Proposal
Amanda Christovich of Front Office Sports reported that one concept, from Sequence Equity, is now circulating amongst conference offices. This concept would create a new private entity to run the FCS Playoffs. Under the plan, FCS conferences would own the majority stake, while Sequence Equity would take a minority position, offering “tens of millions of dollars in investment.”
Meanwhile, Sam Herder reported here at HERO Sports just a day earlier that multiple sources confirmed commissioners are being presented with models that would shift the playoffs under a new umbrella — one more closely resembling the College Football Playoff.
One sitting AD told HERO Sports: “We lose money. It’s a great product and tremendously undervalued. Surely there has to be another way.”
Conversations are still very early, but serious enough that FCS commissioners have already reached out to NCAA leadership. I repeat, this is still very early.
It’s worth pausing on that last word: listen. Because if you’ve ever seen Michael Scott stand on a desk and scream, “I DECLARE BANKRUPTCY,” you know that sometimes the mere act of listening is all that’s left when budgets break. The problems don’t just magically go away.
What This Could Look Like
Think about the College Football Playoff. It’s not an NCAA event. There’s a crossover, but it’s not an NCAA entity. It’s operated by CFP Administration, LLC, a company owned by the FBS conferences, as well as Notre Dame. That entity handles everything: revenue distribution, sponsorships, media rights, and operations.
This proposal would create something similar for FCS — an SPV (special purpose vehicle), or as your accountant buddy might say, “a fancy way to call an LLC.” Private equity money would guarantee the NCAA a payout to hand off control. Conferences would then own the product, with the PE firm staffing up a playoff office full of qualified individuals within the SPV.
Right now, the NCAA’s sponsorship model often bundles March Madness assets with everything else — track and field, wrestling, you name it. That dilutes value and ties advertisers’ hands.
As one AD told me in the last 48 hours: “People realize we are being operated like the track and field championships, right? Same per diem, same setup. We are lumped in with everything else they do, and that’s not right.”
In theory, this new structure would do the opposite: un-bundle the FCS Playoffs, market them as a standalone product, and maximize sponsorship, revenue, TV, and fan engagement.
So Why Am I Writing This
I’ve spent 15+ years in collegiate athletics and sports & entertainment, working across fundraising, marketing, operations, and feasibility studies. Today, through Athletics Admin, I provide very affordable contract and consulting services to athletic departments, often serving as a third-party facilitator on revenue projects, strategic planning, and brand building. I’ve negotiated apparel deals, designed fundraising campaigns, and sat in the very rooms where these private equity pitches are made.
Obviously, I also write for HERO Sports, where my perspective isn’t that of an outside journalist, but of someone who still works inside the industry every day. It’s fun, and I enjoy writing about topics through the lens of someone in the industry.
Yes, it makes me vulnerable, but I want to be educational in my writing.
Back to your regularly scheduled topic.
Breaking Down the Arguments
Here are some common pushbacks I’ve heard in my DMs and texts this week — and my responses:
“Private equity has no business in college sports. It will ruin it.”
Actually… it’s already here. Learfield? Van Wagner? Endeavor? All supported by PE money. If you think private equity hasn’t touched your school, it has — you just may not know it. Is it explicitly private equity money in the NCAA? No. But nor is it explicit in this model either. It would be operated by an LLC with PE money, just like other ventures currently in collegiate athletics. Hundreds of millions of dollars are already in the industry, making decisions and shaping the landscape.
“Nobody in the FCS has ever said, ‘Wow, I wish our playoff was more like the FBS.’”
Fair, but also misleading. Schools may not want the model, but they absolutely want the money. And this could absolutely deliver it. I think more than anything, the FCS football playing members would like to be recognized as a viable product. Right now, it’s operated as another championship event from the NCAA.
“Why would the NCAA allow this?”
Because there’d be a guarantee. Likely even a buyout. The NCAA gets a check, schools get more control, and private equity plays the Learfield-like middleman.
“Will PE try to buy a stake in my school’s athletic department?”
No. There’s no money in it outside of a handful of FBS programs.
What they will do is invest in specific projects. Picture this: Alaska A&M has an elite hockey program. The old arena is crumbling, and the athletic department barely breaks even… even with institutional support. For years, administrators at Alaska A&M have dreamed of adding a premium seating area — a $25 million project they can’t possibly fundraise or finance.
Private equity steps in and says: “We’ll give you the $25 million. You get your premium seating. In return, we’ll revenue-share off that section until we recoup our investment plus a negotiated return.”
That’s the play. Not buying the whole athletic department, but financing pieces of it. Think Shark Tank… with shoulder pads and Zambonis.
Side note to this, there’s a lot of interest in some of these emerging sports or successful sports at schools that might not be in a revenue-generating sport.
“So what about TV — didn’t the NCAA just sign an extension?”
Answer: Yes. The media rights for the FCS Playoffs are currently owned by the NCAA, which in 2024 extended its deal with ESPN. That contract bundles the playoffs with 40 other NCAA championships and pays about $115 million annually for the whole package.
I’m doing my best here to explain how this could play out, but the most logical scenario is either a buyout of that portion of the contract or simply piggybacking off the existing deal. To me, the latter seems far more realistic.
Why This Matters
FCS schools are losing money on playoff trips. Athletic departments everywhere are tightening budgets in the face of revenue sharing, NIL, and realignment costs. Private equity might not be the villain here. It might just be the bridge.
That doesn’t mean there aren’t risks — we’ve all seen how short-term investors can strip assets. But this isn’t random outsiders circling. These are individuals with a vested interest in the industry, ties to the sector, and a willingness to invest in developing undervalued products.
As fans, employees, and investors, the smart move right now is to do what the commissioners did in Chicago: listen.
Because in college athletics, or for that matter, in life, if somebody offers you a new job, a new idea, or just a lifeline in a budget crisis… You at least take the meeting.
And maybe, just maybe, the punchline here is the same as it’s always been in FCS playoff football: It’s not about avoiding risk. It’s about surviving and advancing.
