One of the nation’s top broadcasting, branding and sponsorship companies for collegiate sports programs made a deal with several private equity firms to reduce its debt by more than $600 million.
Plano-based Learfield, which has ties to more than 1,200 collegiate institutions and more than 15,000 brand partners, closed the deleveraging transaction with lenders and equity partners that — in addition to cutting its debt in half — also adds $150 million in new equity investment, the company said Wednesday.
Advertisement
Learfield represents the athletics multimedia rights for many Texas schools including Texas Christian University, the University of North Texas, Texas A&M University, the University of Texas at Austin, Texas State University and Texas Tech University, according to the company’s website.
Advertisement
“It frees up more free cash flow for us to invest back into the business and in our people,” Learfield president and CEO Cole Gahagan told The Dallas Morning News. “And by securing this equity infusion, it puts us in an offensive position with more fresh powder to go and innovate and disrupt.”
Business Briefing Become a business insider with the latest news. Email Address By signing up you agree to our Terms of Service and Privacy Policy SUBMIT
Cole Gahagan is president and CEO of Plano-based sports multimedia company Learfield. (Learfield)
Learfield’s majority ownership now includes Clearlake Capital Group LP, Charlesbank Capital Partners and funds managed by affiliates of Fortress Investment Group LLC. Its previous majority owners, Endeavor, Silver Lake and Atairos, will retain equity stakes in the company.
Advertisement
The company offers licensed merchandise, game ticketing, donor identification for athletic programs, exclusive custom content, marketing initiatives, NIL (name, image and likeness) solutions and digital platforms. It has been the title sponsor for the National Association of Collegiate Directors of Athletics and USA Today’s Learfield Directors’ Cup since 2008.
“I think that now’s not a time to get distracted, now’s the time to execute, and we have a phenomenal strategy in place that’s centered in fan data, it’s centered in technology, it’s centered in incumbency, and it’s centered around content and media,” Gahagan said. “The power of that is going to put us in a great position to execute and succeed in the years ahead.”
A sports powerhouse
Learfield merged with IMG College in a $2 billion deal in 2018. The company was acquired by New York private investment firm Atairos in 2016, The Dallas Morning News reported.
Advertisement
The company has five operating divisions: Learfield Amplify, CLC, Paciolan, Sidearm Sports and its core multimedia-rights business.
Advertisement
In 2020, Learfield launched Fanbase, a data-infrastructure platform for college athletics; in 2021, it announced Learfield Allied, an NIL program that helps brands leverage school IP in student-athlete deals; and in 2022 it announced Learfield Studios, a college sports media and content production group.
Learfield has a team of about 2,200 people nationwide, according to Gahagan. He said most work on college campuses through multimedia-rights partnerships.
Advertisement
Gahagan declined to share sales and revenue figures but said the company has had a record revenue growth rate over the last two years.
“We continue to have a responsibility to create more opportunities for student-athletes and for brands and for universities given our unique position,” Gahagan said. “The area around which we’ve seen the most enthusiasm and opportunity has been in content and media, and we only expect that to grow exponentially in the years ahead.”
Making the deal
Gahagan said that as early as about two years ago, amid looming maturities and changing capital markets, the company started the planning process for restructuring. He credited the company’s eventual success in the process to that early start.
Advertisement
Conglomerates like Learfield — a result of multiple mergers and acquisitions through decades — often create balance sheets with lots of debt. “It’s something that we’ve been shouldering for quite some time,” he said.
About three or four months ago, he said, the company considered whether it would pursue a court restructuring but instead decided to pursue what he describes as “one of the largest out-of-court restructurings in U.S. history.”
Gahagan said the only reason the company would have had to go to the courts was to exit some negative contracts, and that when executives realized they had a deal with equity and lending partners, “we decided to try and exit those agreements through conversations as opposed to exiting them in the courts, and fortunately we were successful in doing that.”
Advertisement
The company was also able to renegotiate terms of five significant college sports contracts in order to avoid a potential Chapter 11 bankruptcy filing, Gahagan said in an article published by the Financial Times Wednesday. Gahagan declined to name the schools.
“While extraordinarily challenging conversations, every single one of the athletic directors that we had discussions (with) was just an amazing professional,” Gahagan told The News. “And while difficult, we went right into problem-solving mode and landed in a spot with all five that allowed us to keep this restructuring on track and got it to a good place.”
Texas, SMU, TCU, A&M, UNT sports-media partner avoids bankruptcy with $600M-plus deal
- Advertisment - 
Recent Comments
on Iowa State starting RB Jirehl Brock among latest college football players charged in gambling probe
on The Rev. Al Sharpton to lead protest after Florida governor’s ban of African American studies course
on Sports World Hails ‘Superwoman’ Lindsey Vonn for Her Grand Comeback Despite Career-Changing Injury
on San Mateo County Community College District sues five companies over role in ‘pay to play’ scandal
on Saipan, placid island setting for Assange’s last battle, is briefly mobbed – and bemused by the fuss
on ‘Pokémon Scarlet’ and ‘Violet’ Fan Theories Suggest Legendary Time Travel, Alternate Dimension Plot
on Joe Manchin and Tommy Tuberville introduce bill on name, image and likeness rules for college sports
on Inside the Michael Jordan ‘Air’ movie, plus why NFL, others are buying into the sports film industry
on If you’re a frequent traveler, these wrap tops from Aday will revolutionize your on-the-go wardrobe
on How Does Jack Nicklaus Travel? Exploring the Private Jets Owned by the ‘Golden Bear’ Over the Years
on Hollywood Reporter: Tom Cruise negotiated with movie studios over AI before the actors strike began
on Ford Blue Cruise: US regulators investigate fatal crashes involving hands-free driving technology
on Dozens of boats cruise the Seine in a rehearsal for the Paris Olympics’ opening ceremony on July 26
on Devout athletes find strength in their faith. But practicing it and elite sports can pose hurdles
on Despite strong Lunar New Year holiday data, consumer spending in China isn’t roaring back just yet
on David and Victoria Beckham so ‘Charmed’ by Tom Cruise They Have His Photos on Display at Their Home
on CONCEPT ART: New Details Revealed for Disney Cruise Line Lookout Cay at Lighthouse Point Destination
on CBS Sports announces Matt Ryan will join NFL studio show. Longtime analysts Simms and Esiason depart
on Boston College vs. Army live stream, how to watch online, CBS Sports Network channel finder, odds
on Boise State vs. Air Force live stream, odds, channel, prediction, how to watch on CBS Sports Network
on Biden to tout bill’s prescription drug prices, energy provisions in pitch to Americans, aide says
on After UFC Fallout, Conor McGregor Offers a Valuable Piece of Advice to Free Agent Francis Ngannou
on 2024 Super Bowl: CBS Sports Network and CBS Sports HQ to combine for 115 hours of weeklong coverage
on ‘Best Intention’: Chris Kirk Has Absolute Trust in Jay Monahan and PGA Tour’s Widely Debated Model
on 2023 NFL All-Rookie Team: CBS Sports draft expert, former GM unveil league’s best first-year players
on “Completely Knocked Me Out”: Rob Lowe Recalls Boxing Match With Tom Cruise On 1983 Brat Pack Classic
on CONCEPT ART: New Details Revealed for Disney Cruise Line Lookout Cay at Lighthouse Point Destination
on “Completely Knocked Me Out”: Rob Lowe Recalls Boxing Match With Tom Cruise On 1983 Brat Pack Classic
on CBS Sports announces Matt Ryan will join NFL studio show. Longtime analysts Simms and Esiason depart
on Carlos Sainz’s Soccer Fanboy Emerges as Spaniard Shares Defining Moment With This Real Madrid Legend
on Biden: ‘At this point I’m not’ planning to visit East Palestine, Ohio, after toxic train derailment
on ‘Best Intention’: Chris Kirk Has Absolute Trust in Jay Monahan and PGA Tour’s Widely Debated Model
on Ahead of big sports weekend, dispute with Disney leaves millions of cable subscribers in the dark
on A heavy wave of Russian missile attacks pounds areas across Ukraine, killing at least 4 civilians
on 2024 Super Bowl: CBS Sports Network and CBS Sports HQ to combine for 115 hours of weeklong coverage
on 2023 NFL All-Rookie Team: CBS Sports draft expert, former GM unveil league’s best first-year players
on Army vs. Coastal Carolina live stream, how to watch online, CBS Sports Network channel finder, odds
on AL Rookie of the Year Julio Rodriguez Spreads Joy and Sportsmanship to the Youth of Loma de Cabrera
on After UFC Fallout, Conor McGregor Offers a Valuable Piece of Advice to Free Agent Francis Ngannou
on Dubai International Airport sees 41.6 million passengers in first half of year, more than in 2019
on Devout athletes find strength in their faith. But practicing it and elite sports can pose hurdles
on Despite strong Lunar New Year holiday data, consumer spending in China isn’t roaring back just yet
on Dave Portnoy: Taylor Swift’s security should ‘drag Kim Kardashian to jail’ if she attends Eras Tour
on CONCEPT ART: New Details Revealed for Disney Cruise Line Lookout Cay at Lighthouse Point Destination
on “Completely Knocked Me Out”: Rob Lowe Recalls Boxing Match With Tom Cruise On 1983 Brat Pack Classic
on CBS Sports, Serie A announce new TV rights deal; Paramount+ to air over 400 Italian soccer matches
on Cam Newton’s Violent Public Incident Draws Hilarious Reaction From 3x All-Star: “Where Do I Sign Up
on Boston College vs. Army live stream, how to watch online, CBS Sports Network channel finder, odds
on Angel Reese Launches Foundation Dedicated To Empowering Women Through Sports & Financial Literacy
on A weaker dollar, skyrocketing prices and ‘record’ visitor numbers: Good luck in Europe this summer