Utah Becomes First University to Sign Private Equity Deal, Reshaping College Athletics

The University of Utah is becoming the first college athletics programs to create a partnership with a private equity firm.[1] The agreement is with a private equity firm based in New York called Otro Capital.[2] Otro Capital will help the Utes generate new revenue streams for their department.[3] Private equity firms will also be able to look at the spending issues in college athletics with a different mindset, and they will focus on cutting costs, consolidating, and reselling for profit.[4] This business venture will generate over $500 million in capital.[5] With success like this, it is likely other schools will follow suit.

This partnership begins with the creation of a “private, independent offshoot of the athletic department,” which will be called Utah Brand & Entertainment LLC.[6] The University of Utah will have majority ownership and decision-making authority of Utah Brand and Entertainment. The president of the company will be from outside the university, who will report to a board that is chaired by Mark Harlan, Utah Athletic Director, and there will be board seats for trustees and Otro executives.[7]

NCAA President, Charlie Baker, thinks this deal is really well thought out and designed, but he reminds universities to proceed with caution when entering into these private equity deals.[8] This concept of entering into a private equity deal has been considered several times, but the biggest struggle was finding someone to go first. The House settlement and transfer portal pushed Utah to make this decision because they needed a way to pay athletes following the increased financial burden of the transfer portal and having to share revenue with student athletes.[9]

Mit Winter, college sports law attorney, believes this is just another example of the professionalization of college athletics.[10] College athletics programs need to be run like businesses to be successful. College athletes will need to be treated like professionals in order to generate revenue for their athletics programs.[11]  The professionalization of athletics further begs the question of whether athletes become employees. As more aspects of college athletics become professionalized, it should result in the athletes getting paid for their services, as their services provide the greatest source of revenue to these universities.

 

[1] Ross Dellenger, University of Utah nearing landmark private equity deal expected to generate $500 million, Yahoo! Sports (December 9, 2025)

[2] Id.

[3] Dan Wetzel, Beware, college sports, private equity has arrived, ESPN (December 11, 2025)

[4] Id.

[5] Id.

[6] Id. Supra note 1.

[7] Id.

[8] Alex Sherman and Contessa Brewer, Utah breaks the private equity seal with historic $500 million investment, CNBC Sport ( December 11, 2025)

[9] Id.

[10] https://www.linkedin.com/feed/update/urn:li:activity:7404242725249789952/?originTrackingId=OLe0%2BdboRi6xcAlIhfmIZA%3D%3D

[11] Id.

 

[HD1]I might add something about this further begs the question of whether athletes will become employees.