Major public universities pay fired coaches tens of millions by using separate, non-profit corporations to manage athletic departments. This legal loophole keeps massive coaching salaries and buyouts at arm's length from taxpayer funds and general university budgets, avoiding public scrutiny.

The NIL arms race has created a new financing need for universities themselves. They are now turning to private credit funds for multi-million dollar loans to cover recruiting expenses and six-figure commitment bonuses. These loans are secured by the athletic department's predictable TV revenue, creating a stable, asset-backed lending opportunity.

Emanuel asserts that media companies are ill-equipped to own sports leagues because the core operational challenge is managing a fluid, dynamic relationship with athletes (who are often independent contractors). This talent-centric business is fundamentally different from a media company's typical content operations and requires a unique skillset.

High-profile sports franchises defy standard financial analysis. Their valuation is driven more by their scarcity and desirability as a "trophy asset," similar to a masterpiece painting. This makes them a store of value where the underlying business fundamentals are only part of the equation.

In sports, internal-facing marketing assets like pre-game videos serve a dual purpose. They are designed to energize the players, which directly enhances their performance and, by extension, the fan experience. This creates a feedback loop where fan entertainment and player motivation fuel each other.

With Wall Street private equity firms now buying stakes in athletic departments and players earning millions, major college sports are functionally pro sports. The only remaining distinction is the university's non-profit, educational mission statement, which may soon clash with investor demands for profit.

The modern college football landscape, flush with cash from NIL deals, player transfers, and expanded playoffs, has created immense pressure to win immediately. This financial intensification means athletic programs have less patience for losing seasons, leading to record-breaking buyouts for underperforming coaches.

Certain "trophy assets," like major league sports teams, defy traditional valuation metrics. Their true worth is determined not by their cash flow, which can be modest, but by their extreme scarcity and the price a private acquirer is willing to pay for the prestige of ownership, as seen in private market transactions.

A little-known tax change effective around 2027 will prevent public companies from deducting the salaries of their top five highest-paid employees. For sports teams, this creates a huge competitive disadvantage against private teams, providing a powerful catalyst for them to be sold or taken private.