Asti: Why WVU Should Say No to Big 12’s Private Capital Offer

One of the latest developments in the ever-changing world of college athletics may seem like an early Christmas gift for Big 12 schools. Not so fast.

While the recent news of the Big 12’s private capital deal may seem like a lifeline for programs in need of fast cash, accepting the offer is far from an easy decision for athletic directors.

It’s also something West Virginia should probably say no to.

Courtesy of RedBird Capital, the Big 12 is offering its schools $30 million…but there’s a catch, it’s not free money. Even assuming the intentions of this are in good faith, this opportunity can be best explained as a loan or credit line. The label of “capital infusion” is simply a fancy promotional slogan.

And when it comes to taking out a loan or opening up a line of credit, it’s usually not wise unless absolutely necessary. It’s often viewed as an unnecessary risk, and would be in this case for the Mountaineers.

There are only two ways accepting this offer would make sense:

1. The money would allow WVU to take a giant step in terms of success in football and/or men’s basketball, and ideally both simultaneously. A giant step would mean building rosters that can contend for Big 12 championships, a College Football Playoff birth and reach a Final Four. That’s the minimum bats to make letting the conference become your loan shark worthwhile. The success of the rest of the athletic department should not go forgotten, but the health of a school is judged off the two major sports. If football and men’s basketball can get going on a national level again, WVU would instantly become one of the best overall athletic departments in the country. But of course, that’s not the case right now, it’s what director of athletics is striving to make happen.
2. The only other reason a school like WVU would agree to this type of deal would be if it’s truly the only way to even field competitive teams. West Virginia would have to be far worse off financially than what has been reported or publicized. And from what we at WV Sports Now and others have reported and has even been expressed by Baker himself, that’s not the case currently. This may have made sense a few years ago when Neal Brown was working with a $3.5 million NIL bank going into the 2024 season…or years before that when NIL was early in its existence. Doing this to get started is one thing, but doing this after Rich Rodriguez’s historic recruiting season in football, a successful debut season for Ross Hodge in men’s basketball and multiple coaches and officials saying they are working with significantly more money this year would be odd timing and send the wrong message.

WVU AD Wren Baker sings the National Anthem decked out in a West Virginia jacket ahead of a game during the 2023 season. (WVSN photo by Kelsie LeRose)

As commissioner Brett Yormark tries to make sure the Big 12 maintains its place next to the ACC in the second tier among the Power Four conferences, putting together the first private capital deal from a major conference may seem like a progressive and forward thinking move. And it might be that in general, but it’s still a risky proposition that WVU should stay away from.

Note: Big 12 schools have one year to decide if to accept the conference’s one-time offer of a capital infusion.