Why Colorado, other Big 12 schools are saying no to $30 million lifeline
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Colorado, Kansas State and Iowa State have declined to accept a $30 million line of credit option that is being offered to all 16 schools in the Big 12 Conference as part of a private capital deal with the league.
Those three schools confirmed it to USA TODAY Sports May 7, becoming some of the latest Big 12 schools to confirm they are saying no to this resource, which comes at an interest rate of nearly 10%. At least eight other Big 12 schools have declined the option, according to reports, meaning at least 11 Big 12 members are turning it down. TCU, Baylor, Houston, Cincinnati, BYU, UCF, West Virginia and Utah also have said they have no plans to take the money even though all schools are challenged financially by the rising costs of paying players and coaches.
The private capital option comes from the league’s partnership with RedBird Capital and Weatherford Capital, two firms based in New York and Florida. No Big 12 school so far has confirmed it is taking the money.
“The University of Colorado Boulder supports the Big 12’s agreement with RedBird Capital and Weatherford Capital, and we are confident that this agreement positions the conference and its member institutions for success in the current dynamic environment of college athletics,” Colorado said in a statement.
“CU Boulder is not opting-in to the capital credit line included in the agreement, and we look forward to learning more about the opportunities contained in this new partnership that can benefit CU Boulder Athletics and our student-athletes.”
Why are Colorado and other Big 12 schools turning down private capital offer?
Colorado is a case example for this. Like at many other schools, the Colorado athletic department has been reliant on institutional support and student fees to help pay the bills. In fiscal year 2025, Colorado athletics needed $43.5 million in institutional support from the school to help pay nearly $162 million in operating expenses.
For fiscal year 2026, Colorado athletics has projected a $27 million deficit in addition to using at least $14 million in university support — a deficit that comes after nearly doubling the pay of football coach Deion Sanders to $10 million, plus the new player revenue-sharing cost of up to $20.5 million that started for all major schools in 2025.
So it’s easy to see how an extra $30 million would come in handy.
But not if you can get a better rate elsewhere. Or if the university governing board and CU leaders are all in “alignment” to fund athletics as needed, including any deficits — and without the strings that come attached to a loan with private capital.
Private capital deal with Big 12 still has big potential
That’s not to say this isn’t a good deal for the Big 12 overall. The league office is taking in $12.5 million as part of the partnership with RedBird and Weatherford to help the league invest in its growth. Having an extra $30 million credit card lying around in times like these gives these schools some options, even if they decide it’s better to not use it.
Beyond the money, the deal helps the league buddy up to big resource partners with influence in media rights and sports. For example, RedBird Capital has an ownership stake in Paramount Global, which owns CBS and recently took over the company that owns TNT. It has $14 billion in assets and 22.5% voting rights in Paramount. Weatherford Capital also is an investor in the IMG Academy in Florida, where Colorado recently has recruited top players.
Follow reporter Brent Schrotenboer @Schrotenboer. Email: bschrotenb@usatoday.com
This article originally appeared on USA TODAY: Colorado, other Big 12 schools just say no to private capital funds
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