Financial pressures in the post-House settlement era are reshaping college sports. Some schools are cutting Olympic programs entirely, while others are exploring private-equity investment as they search for new ways to meet rising costs tied to increased athlete compensation.
Wichita State on May 5 discontinued its men’s and women’s golf programs. In recent weeks, at least four Division I schools have announced tennis cuts. And last April, Grand Canyon University cut its men’s volleyball team despite a 2024 Final Four berth. Meanwhile, the University of Utah in December unveiled a controversial agreement with private-equity firm Ottro Capital, and the Big 12 recently announced a deal with RedBird Capital Partners and Weatherford Capital that gives schools the option for a line of credit up to $30 million.
Florida State University is pursuing a different approach. “Cutting sports isn’t part of the equation for us,” Stephen Ponder, president and CEO of Seminole Boosters—the fundraising and revenue-generation arm supporting FSU athletics—tells Front Office Sports.
Through an agreement reached last month with Nocap Sports, FSU formed the Seminole Business Network, which aims to generate new, recurring athletics revenue. Under the Nocap model, businesses located anywhere in the U.S. that are owned by FSU boosters or alumni switch to a network of companies in areas like payments, insurance, energy, car rental, software, and aviation. Those providers are willing to offer preferred pricing or discounts because they are promised access to the pipeline of new customers.
