RedBird Capital, led by founder Gerry Cardinale, and Weatherford Capital, run by brothers Will, Sam, and Drew Weatherford (the latter being a Florida State University trustee), have launched Collegiate Athletic Solutions (CAS), an investment fund specifically targeting the college sports industry.

CAS aims to capitalize on the rapidly changing landscape of college athletics, where athletes are on the verge of receiving more robust compensation, and schools are seeking new funding sources to remain competitive. The fund’s structure involves lending upfront money and operational expertise to athletic departments in exchange for a share of the additional revenue generated under their partnership.

CAS is raising money and is already in talks with numerous universities, planning to initially partner with 5 to 10 athletic departments, offering $50 million to $200 million to each.

Cardinale described the opportunity as “one of the most potentially transformative” he has witnessed in his 30-year sports career, citing the legal, financial, and legislative upheaval in college sports. RedBird’s sports portfolio includes AC Milan, Fenway Sports Group, YES Network, Alpine F1 Team, and the UFL.

Weatherford Capital, headquartered in Tampa, Florida, has experience in technology and financial companies, recently investing in IMG Academy in 2023. Drew Weatherford, a former Florida State football player and current trustee, stated he would recuse himself from board decisions that might create a conflict with his involvement in CAS.

The new venture is one of several institutional funds looking to finance and profit from the increased commercialization of college sports, reflecting the industry’s shift towards a more professional and revenue-driven model.

via: Sportico