The University of Houston does not plan to exercise the one-time capital credit option available to Big 12 schools through the league’s recent business partnership, athletic director Eddie Nuñez said Monday.
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As part of the Big 12’s five-year agreement with investment firms RedBird and Weatherford Capital, each of the league’s 16 schools will have access to roughly $30 million in the form of a capital line of credit. Schools are not required to opt in.
“We are supportive of what RedBird is bringing to the table, but as an institution right now we are not considering the school-level investment that they have offered,” Nuñez told the Houston Chronicle.
UH had revenue of $92.7 million, according to the most recent NCAA financial report, that ranks among the lowest among major conference schools.
After receiving a partial revenue distribution for its first two years in the Big 12, UH is set to receive a full share – estimated to be more than $40 million – later this month.
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The Big 12 is the first known conference in major college sports to strike a league-wide, private capital deal. In addition, RedBird will provide the league with a $12.5 million capital infusion. The Big 12 has stressed this is not a private equity deal and the firms will not receive any stake in the conference.
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This article originally published at UH won’t take credit option in Big 12’s new partnership with private equity firms.
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