Penn State, UCLA Have Reportedly Decided To Take Money From Private Equity Funding. Schools Looking For Help

Now that schools are set to start paying players directly due to the House settlement being approved, some athletic departments are looking for additional forms of revenue. On Monday, it was reported that ELEVATE has created a $500 million College Investment Initiative, with two teams from the Big Ten, Penn State and UCLA set to take the private capital. 

The news was reported by Sportico, and will see both schools take in probate equity in hopes of maintaining in this new era of college athletics. 

According to an announcement, the College Sports Fund has the backing of the Velocity Capital Management firm, along with the Texas Permanent School fund, which will infuse schools with the capital needed to keep up with the new monetary details of the House settlement. Schools will now have the ability to divide $20.5 million between different sports programs on campus, with football and basketball set to receive the highest percentage of the revenue-sharing. 

In an update to this reporting from Sportico, ELEVATE has released the following statement from CEO Al Guido, denying that UCLA and Penn State have agreed to use private funding, as of now. 

"Elevate is encouraged by the interest generated by today’s announcement of our Collegiate Investment Initiative. We are proud to maintain longstanding relationships with both UCLA and Penn State in the areas of ticketing operations and strategy. These partnerships were established prior to the launch of the initiative and are reflective of our broader commitment to supporting the long-term success of collegiate athletic programs."

House Settlement Will Force Schools To Make Tough Decisions, Could Turn Into An NIL 'Sh-t Show Moving Forward'

If you're wondering why schools are starting to run towards private funding, look no further than the costs associated with keeping athletic programs afloat. Right now, there is a major concern on college campuses that Olympic sports, along with others, could see financial cuts in the coming years, which could eventually lead to their demise. 

The simple fact is that, since football and basketball are the main driving forces when it comes to revenue for athletic departments, schools have to find different ways to raise capital. Right now, the football programs will receive the highest percentage from revenue-sharing, because they are the outlet that allows other sports on campus to pay the bills. 

There are plenty of schools that do not see a financial return for sports outside of football and basketball, which causes them to run at a loss every season. Now, with this private funding, there is an opportunity for schools to keep things running at the current level. 

House Settlement Approved, College Athletics Undergo Massive Change With Schools Now Paying Athletes

But, the biggest question is how many other schools join in. There will be plenty of schools that decide private funding will be needed in the short-term, especially as they run through the next few years in the fallout from the House settlement. 

In order to keep some athletic programs around, there will be certain schools that decide private funding is the way to go at the moment. 

Now, we wait to see who else joins the financial party, and gives private firms a