College sports is big business, of course — and no one knows that more than the folks at Learfield Communications, the 44-year-old Jefferson City, Mo., company that owns the media rights to 120 universities and colleges.
In fact, there are more college sports fans than NFL fans.
Perhaps that’s one reason that Providence Equity Partners is set to sell out of its stellar investment in Learfield after just three years.
Learfield has grown so significantly in the college sports realm that bankers at Moelis & Co. are believed to be touting a potential $1 billion valuation.
Jonathan Nelson’s Providence, which also has stakes in Major League Soccer and a venture with the Dallas Cowboys’ Jerry Jones, acquired a majority stake in Learfield from Shamrock Capital Advisors back in 2013. Shamrock acquired an 80 percent stake for just $80 million in 2011.
Learfield has expanded over the years well beyond the business of selling T-shirts and tickets, and is now into data analytics in addition to media rights.
“It’s a good time to be selling, generally,” said one observer, who adds, “Who ever gives up their alma mater?”
The sale process will kick into high gear in the coming weeks, my sources say.