Rays, Red Sox investors plan $2 Billion in college athletic departments loans

Weatherford Capital, an investment firm that is part of the new Tampa Bay Rays ownership group, is partnering with Red Bird Capital, which has invested in many sports organizations including the Boston Red Sox, and is preparing to invest $2 billion in college athletic departments.

As reported by sporicThe two companies plan to make investments in various universities in increments of 50-200 million dollars through the recently established company Collegiate Athletic Solutions (CAS). Seeking variable-yield loans as opposed to the investment company’s standard investment process:

CAS’s approach differs from traditional private equity and even private credit. The group does not plan to take an equity position in any athletic department business venture or receive fixed payments in exchange for upfront capital. Instead, the deals will be structured with returns tied to generating new revenue, a source said.

Headquartered in Tampa, Weatherford Capital is led by brothers Will, Sam and Drew. Will Weatherford is the former speaker of the Florida House and sits on the Rays Executive Advisory Board. Drew Weatherford is the former quarterback for Florida State and currently sits on the university’s board of governors.

You can read Drew Weatherford’s perspective on investing in college sports at the links below:

Red Bird Capital is investing in the Boston Red Sox through partial ownership of Fenway Sports Group, which includes Liverpool FC, Pittsburgh Penguins and RFK Racing. They have also invested in other sports franchises, such as Yankees-owned YES Network and Legends Hospitality, as well as AC Milan, Toulouse FC and the UFL. They were in the news recently for advising and investing in the Paramount-Skydance merger. The resulting company is now seeking a hostile takeover of Warner Brothers Discovery.