Will private equity get involved in Penn State athletics? That and more from PSU AD Pat Kraft
Penn State athletic director Pat Kraft didn’t mince words when discussing the possibility of private equity getting involved in college athletics.
“Why would I give up my money?” Kraft said with a smile. “I love this private equity, they’re basically saying we’re dumb. We don’t know how to run our business. ... Why would Penn State take private equity money? I’ve got 94,000 season ticket holders. We sell out hockey. We sell out wrestling. I’ve got the best fan base in the country. Why do I need private equity? So someone can tell me I’m stupid? I have enough people around me to tell me I’m stupid. “
The possibility of private equity entering the world of college athletics has picked up steam, especially as the Big 12 reportedly considered a potential $1 billion investment in the conference from CVC Capital Partners.
And while that could be on the horizon for other conferences, it seems Penn State will not be taking part in any deal of the sort.
Especially because Kraft said he can already tell what they’d suggest.
“You’re gonna hear it I bet these next two days,” Kraft said Tuesday, at Big Ten Media Days. “You want to know what they’re going to say? ‘Hey, Penn State play (USC), play Michigan, play Ohio State, this will be better for TV.’ Great. Like, what are we talking about? Rocket science?”
Kraft acknowledged that college athletics is already a business, but part of his issue with private equity is that he believes every decision would be purely financial based.
And while there is consternation about the nature of college sports and the changes with regard to athletes’ selling their name, image and likeness and being able to transfer more freely with the transfer portal, that doesn’t mean every decision made is based solely on the bottom line.
“My business is to take care of my kids,” Kraft said. “If you look at a balance sheet, half the stuff we do you would never do. But I want my fencing team to win a national championship. I want my gymnasts to win a national championship. They need to get an education. We need to take care of them as human beings and help them grow through this process.”
Beaver Stadium progress
The $700 million Beaver Stadium renovation project has moved forward this summer as construction crews have gone to work on the 60+ year old venue, but it has not gone without its detractors.
And while those detractors have been vocal, Kraft said there was no other option.
“We have to fix critical care issues in that building,” he said. “It’s just the reality. Money was pulled back from deferred maintenance from that building for a decade. It’s a very special building. I love Beaver Stadium. And I think to keep Beaver Stadium (as) Beaver Stadium, we have to invest in it.”
He went on to describe some of the larger issues with bathrooms, the building only having one kitchen and various other problems they’ve faced. But that doesn’t mean the fixes will all be quick.
While the construction crews have already begun the work, not every facet of the current construction will be done in time for the season to start. Some aspects will take longer, but Kraft said he hopes to have most of it done by the time the program hosts Illinois on Sept. 28 for its homecoming game.
“Our super ribbon board, the extended ribbon board, I’m not gonna say that will be ready to go,” Kraft said. “But for the most part everything will be up and running. It’s just doing construction nowadays. We’re trying to hit a mark, but it’s a moving target with just getting equipment in and permitting and all of the other things.”
The Illinois game was one of many theme nights the program announced this month, along with the Nov. 9 White Out against Washington. That game may not have been the top choice for the athletic department — Ohio State being the most obvious pick — but it was still able to get a game it wanted by working with Fox to get the broadcast network not to take the matchup for Big Noon Kickoff that week.
“We don’t know yet if it’s gonna be a 3:30 kick or a 7 p.m. kick,” Kraft said. “So that is not determined yet either. That will go to the traditional 12-day window, or if it gets shrunk to six. But we had to get something out. This is a late White Out. We would typically like to have it sooner.”
Kraft also noted that he’s working with Big Ten commissioner Tony Petitti to smooth out the process in the future.
Keeping wrestling rolling
Penn State wrestling has continued its run as the best program in the sport since Kraft has arrived as athletic director and — despite a shakeup at Oklahoma State — it doesn’t seem like that’s going to change.
David Taylor’s decision to take the Oklahoma State head coaching position has created waves, with parallels to draw between his career and Penn State head coach Cael Sanderson’s career. Kraft congratulated Taylor for getting the job, but didn’t mince words with how it could impact Penn State.
“We’re happy for David, one of ours,” Kraft said. “But I’m just gonna tell you, we’re the best wrestling program in the world. They can have whoever they want. Good luck David, second place is cool.”
That comment came after the athletic director was asked how Taylor’s contract, which includes over $1 million per year, will impact Sanderson.
Kraft said the current head coach is focusing on the Olympics, with multiple former Nittany Lions and current Nittany Lion Wrestling Club members taking part. But he added that Sanderson’s contract — terms of which are not released publicly — is not expected to be an issue.
“Everyone knows how I feel about Cael,” Kraft said. “We haven’t talked contract extension. If he wanted to talk contract extension today, we would talk contract extension. And he isn’t wired that way, which is such an amazing trait that he has.”
Quick hitters
- Kraft said wherever the NIL cap falls for athletics, the athletic department will go to whatever max it can. Athletic departments will be able to pay players in the near future after the NCAA and the major conferences settled three pending federal antitrust cases.
- He also noted that there will no longer be scholarship limits, and said the university will have a huge advantage as it will be able to raise money for more scholarships.
