FSU Tests New Revenue Model as Schools Cut Sports and Turn to Private Equity

3 min read
FSU Tests New Revenue Model as Schools Cut Sports and Turn to Private Equity

FSU Tests New Revenue Model as Schools Cut Sports and Turn to Private Equity

“Cutting sports isn’t part of the equation for us.”

FSU Tests New Revenue Model as Schools Cut Sports and Turn to Private Equity

“Cutting sports isn’t part of the equation for us.”

In the ever-evolving landscape of college athletics, financial pressures are reshaping the game like never before. With the post-House settlement era forcing schools to rethink their budgets, some are making tough cuts to Olympic sports programs, while others are turning to private equity for a lifeline. But Florida State University is charting a different course—one that prioritizes innovation over elimination.

Recent headlines tell a sobering story. Wichita State ended its men's and women's golf programs on May 5, while at least four Division I schools have announced tennis cuts in recent weeks. Grand Canyon University cut its men's volleyball team last April, despite a 2024 Final Four appearance. Meanwhile, the University of Utah struck a controversial deal with private-equity firm Ottro Capital in December, and the Big 12 partnered with RedBird Capital Partners and Weatherford Capital to offer schools lines of credit up to $30 million.

At Florida State, the approach is entirely different. "Cutting sports isn't part of the equation for us," says Steven Ponder, president and CEO of Seminole Boosters, the fundraising powerhouse behind FSU athletics. Instead of slashing programs, FSU is pioneering a new revenue model that taps into the business community.

Through a recent agreement with Nocap Sports, the Seminoles launched the Seminole Business Network. This innovative program connects businesses owned by FSU boosters and alumni with a network of service providers in areas like payments, insurance, energy, car rental, software, and aviation. These providers offer preferred pricing or discounts in exchange for access to a steady pipeline of new customers.

Here's how it works: When a business in the network uses a Nocap partner, a portion of the transaction flows back to FSU athletics. Nocap itself earns a small cut from successful deals, according to president and CEO Nicholas Lord. "What we've done is kind of flip the whole model on its head," Lord explains, "and created a way for donors—specifically donors who own businesses or are decision makers in businesses—to basically generate recurring revenue without ever having to write a traditional check."

For sports fans and apparel enthusiasts, this shift is worth watching. As schools like FSU find creative ways to fund their programs, the ripple effects could mean more resources for uniforms, gear, and the overall fan experience. In a time when many are cutting back, the Seminoles are proving that the best defense is a good offense.

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