Phillips Shares Concerns on Private Equity in College Athletics

CHARLOTTE — Jim Phillips says the ACC is not satisfied when it comes to the different ways it can generate revenue.

The league’s commissioner told the media at the ACC Football Kickoff on Monday that they continue to look at all options as it relates to revenue.

“I wouldn’t be doing my job if we aren’t exploring every area that’s available,” Phillips said. “I know that it gets out there. Sometimes folks want it to get out there, et cetera. We’ve done a really nice job of kind of keeping things together in a private way.”

Conferences and schools are looking at new ways to raise revenue including private capital, private equity and naming rights.

“I’m proud of two things in particular that I mentioned in my notes about revenue generation. Revenue isn’t just there. You can’t just kind of will it.” Phillips said. “What we did with expansion, with three new schools, I think really will help our conference.

“Then what we’re doing with success initiatives. This is before the litigation even began. That was something that we wanted to do. I felt like we needed to do. The board was terrific. It didn’t have unanimity at first. As we walk through it, it will reward the teams that have the most success. It’s not an absolute correlation, but those that invest more have a higher chance to have success. We all know that. Doesn’t guarantee it. That will be good, a nice incentive and realization of success when we distribute for the first time of any conference, at least in the Power Four, in a disproportionate way.”

As for how ACC schools generate money, Phillips says there are always concerns, like member institutions going into business with private equity investors.

“Nothing’s for free. That’s probably the most important piece of this thing,” he said. “Yes, influx of cash allows you to do some things, but do schools want to do that individually, collectively? Do they not want to do it at all?

“Again, I think it’s just the times that we’re in that you’re looking at lots of different options, trying to make sure you’re vetting them at the right level to make really good, educated decisions.”