Jefferson City-based Learfield Communications Inc., a private company that manages Missouri State University’s multimedia rights, signed a definitive agreement to be acquired by New York investment firm Atairos Group Inc.
Learfield’s majority owner for the past three years, Providence Equity Partners, stands to gain $425 million on the sale of Learfield to Atairos, according to an investor letter obtained by
The Wall Street Journal.
The deal is not expected to change Learfield’s staffing, management or operations, according to a news release. The company would gain access to new collaborations to give its collegiate partners new services in programming, digital capabilities and social media. Including MSU, Learfield manages the multimedia and sponsorship rights for more than 120 collegiate institutions, conferences and arenas, according to the release.
MSU athletics and Learfield established Missouri State Sports Properties as its corporate sponsorship sales unit in July 2014, shortly after Learfield bought former representative Nelligan Sports Marketing, according to
Springfield Business Journal archives.
Missouri State Sports Properties General Manager Mike Peddicord referred SBJ’s questions to Learfield. Spokeswoman Jennifer Duncan said the company’s purchase would have no impact on its relationship with MSU.
“We are very much business as usual,” the Learfield spokeswoman said via email. “This is our third private equity ownership and each time has brought an influx of resources and expertise that only benefits our university partners.”
Before Providence, Learfield was owned by Shamrock Capital Advisors.
In June last year, the MSU Board of Governors approved an 11-year contract with Learfield guaranteeing the university $6.82 million through 2026. In the agreement, Learfield agreed to pay MSU $580,000 in capital subsidy payments for the purchase of an LED ribbon board wrapping around JQH Arena and committed to a 50-50 revenue split between the partners should Learfield exceed annual revenue thresholds. In the 2015-16 academic year, that threshold was $1.95 million, and it steps up each year to $3.6 million in 2025-26.
Through Missouri State Sports Properties, Learfield manages MSU’s venue signage, event sponsorships, marketing, corporate hospitality, radio and TV game broadcasts, as well as its coaches’ shows.
