Trbine pitches revenue-based securities to ~25 of top 54 ADs as PE alternative

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Sports Business Journal’s Chris Smith reports that Trbine is marketing “true revenue-based securities” to athletic departments as a lower-cost bridge versus private equity. In SBJ’s Ohio State example, a department with $336 million in revenue could raise about $500 million in exchange for 5% of future athletics revenue (~$17 million a year). Estimated cost of capital is 4.5%–8.5%, with bank underwriting, bond-like trading, and renewals on roughly a seven-year cycle; annual distributions do not pay down principal. Founder/CEO George O’Conor says Trbine has active term sheets with about 25 of the top 54 departments and hopes for first closings by year-end; no deals are done. Trbine structures the product for a roughly 3% consulting fee; banks would provide capital.