A few ways to demystify investment in college athletics

In response to massive upheaval in college athletics, schools are thinking outside the box. Facing a budgetary crunch, higher education institutions are exploring structures to unlock new revenue streams and access to funding, including investments from third parties.

With college athletics’ popularity, ratings and revenues at all-time highs, the sidelines are filled with potential investors of all sorts waiting for a chance to get in the game. But how can a school—a highly regulated and complex nonprofit organization—accept an investment in connection with its athletics program?

In their article published by University Business, Eversheds Sutherland attorneys Anthony Del Giudice, Baird Fogel, Karl Zeswitz and Chris Rosselli explore how schools can vet alternatives by analyzing the following four considerations:

1. tax planning
2. existing partner obligations and evolving rights
3. institutional and athletic department strategic aims
4. legal and regulatory constraints

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