Deion Sanders’ Colorado officially joined the growing list of Big 12 schools declining the conference’s new $30 million line of credit tied to its private-capital partnership with RedBird Capital Partners and Weatherford Capital. Schools examined terms and grew cautious about interest rates and equity involvement. Colorado and Iowa State became the latest schools to reject, bringing the total number to nine.

“CU Boulder is not opting in to the capital credit line included in the agreement,” Colorado said in a statement. “And we look forward to learning more about the opportunities contained in this new partnership that can benefit CU Boulder Athletics and our student-athletes.”

The setup is ambitious. The Big 12 approved a deal just over a week ago that includes a $12.5 million capital infusion for the conference, a commercial partnership with RedBird to help generate future business opportunities. It also came with an optional $30 million credit line for each member school. 

“This partnership is much bigger than just capital to schools,” a RedBird spokesperson told Front Office Sports. “It’s a commercial partnership where RedBird and Weatherford are delivering commercial revenue to the Big 12. We are playing the long game, where schools have one year to opt in for when the landscape becomes clearer for the ecosystem and individual needs. It’s not intended to be a one-time offer; it’s a long-term feature of a broader agreement for the Big 12 and their member schools.”

The credit line is optional, so schools don’t have to take the money. In case they do, the repayment comes through withheld annual conference distributions on a fixed schedule. And the interest rate is reportedly close to 10%. Faced with those steep terms, university presidents are simply choosing to walk away. The cost of borrowing is too high to justify the immediate cash grab. Colorado remains supportive without actually committing to anything.   

“The University of Colorado Boulder supports the Big 12’s agreement with RedBird Capital and Weatherford Capital,” the school stated. “And we are confident that this agreement positions the conference and its member institutions for success in the current dynamic environment of college athletics.”

While Colorado likes the idea of future revenue opportunities, it just doesn’t love borrowing expensive money to get there. Besides, they aren’t really operating from a position of financial comfort. According to USA TODAY’s Brent Schrotenboer, the athletic department is already heavily reliant on institutional support and student fees. 

When a household is already struggling to pay its basic bills, taking a high-interest cash loan from an outside investor only digs a deeper hole. Coach Prime’s program desperately needs funding, but not at a price that mortgages its future earnings.

On top of that, Colorado is reportedly projecting a $27 million deficit this fiscal year. Under more flexible circumstances, the school could’ve welcomed a $30 million credit line. Colorado walking away highlights a harsh reality for the conference. If a school needs cash this badly but still rejects the offer, the near 10 percent interest rate is simply too toxic for public universities to swallow. Or maybe they simply don’t want private-equity fingerprints all over their athletic operations, and Colorado is far from the only school weighing that dilemma now. 

The hesitation across the Big 12 speaks volumes

Texas Tech has already declined the option. Iowa State publicly said it doesn’t plan to use the line of credit, and Kansas State confirmed the same. Meanwhile, Arizona offered a careful response.

“We appreciate the Big 12 Conference’s innovative commitment to supporting its member institutions and student-athletes in a dynamic and evolving environment,” a school spokesperson told FOS. “After careful consideration, we have decided that the University of Arizona will not pursue the optional institutional capital opportunity.”

Then there’s the growing collection of schools saying, “Maybe later.” These include Baylor, Cincinnati, Houston, TCU, UCF, and West Virginia, with all of them holding off for now. Kansas hasn’t made a final decision yet, while Arizona State, BYU, Oklahoma State, and Utah have yet to speak out. 

Colleges will soon have to pay athletes directly, much like professional sports teams pay their players. Because nobody knows exactly how much this new payroll will cost, taking a massive loan right now is like buying a luxury car before knowing your new rent. Taking on debt at nearly 10% before the landscape settles feels risky to a lot of university leaders, and they’re probably right to hesitate. So yeah, private equity may be knocking, but right now, most schools still aren’t rushing to answer it.