The Big 12 conference and its member schools have engaged in preliminary discussions regarding a potential private equity investment, according to sources familiar with the matter. The talks, first reported by CBS Sports, involve Luxembourg-based investment firm CVC Capital Partners, which presented a proposal to conference leaders at the recent spring meetings in Dallas.

Sources indicate that CVC's investment could range between $800 million to $1 billion, in exchange for a 15-20 percent stake in the Big 12. Such a significant investment would help bridge the revenue gap between the Big 12 schools and other power conferences like the ACC, Big Ten, and SEC. The Big 12 is set to expand into a 16-member league this summer while maintaining its media rights contract, which was recently extended in the fall of 2022.

Furthermore, the Big 12 conference is exploring the possibility of selling its naming rights to a title sponsor, potentially resulting in one of the largest commercial deals in college sports history. Allstate appears to be the frontrunner for the sponsorship, leading to speculation that the conference could be rebranded as the Allstate 12 Conference.

Big 12 Commissioner Brett Yormark emphasized the importance of maximizing revenue during the spring meetings, stating that "value creation is the (league's) number one initiative and priority." Yormark also welcomed private equity interest in college athletics as a validation of the industry's growth trajectory.

The Big 12's current television contract with Fox and ESPN, which runs until 2031, is valued at around $2.3 billion. Starting from the 2025-26 season, the conference expects to distribute an average annual payout of nearly $32 million per school, on par with the ACC but trailing behind the SEC and Big Ten.

In 2024, the Big 12 distributed a record $470 million among its 14 members, but per-school payouts decreased for the conference's 10 original members compared to the previous year due to the inclusion of new members BYU, Cincinnati, UCF, and Houston. Consequently, the Big 12's total payouts fell behind those of the Big Ten, SEC, and ACC.

Sources indicate that the private equity discussions with CVC are in their preliminary stages and would require approval from the conference's board of directors. The purpose of this investment would be to strengthen the conference's financial position ahead of its next media rights contract in 2031, anticipating a substantial increase in television revenue.

CVC Capital Partners, with its global investment portfolio encompassing over 130 companies and organizations, including Bruin Capital and the Women's Tennis Association, is seen as a potential partner that can provide long-term returns on investment.

The Big 12's search for additional revenue streams coincides with the financial challenges posed by the potential House v. NCAA settlement. This settlement, if approved, would result in annual withholdings from the NCAA and require direct revenue-sharing with athletes, potentially costing schools as much as $20-25 million each year.

As the Big Ten and SEC enter into new television deals and negotiate higher rates of revenue distribution from the College Football Playoff contract, the revenue gap between those conferences and the Big 12 continues to widen. These circumstances have fueled the Big 12's pursuit of private equity investment and a title sponsor, demonstrating Commissioner Yormark's assertive and innovative approach to deal-making since assuming his position in 2022.

Note: This news article has been generated based on the information provided and may not include additional updates or developments.