Private Equity Enters College Sports With Otro Capital & Utah Deal

The University of Utah has made history as the first collegiate athletics program to bring private equity into its commercial operations, launching a landmark partnership projected to unlock up to $500 million in new capital. The agreement establishes Utah Brands & Entertainment LLC, a new revenue-driven entity that will sell a minority stake to Otro Capital in what is expected to become one of the most influential and transformative deals in the college sports landscape.

Recently approved by the university’s board of trustees, the partnership positions Utah as an early adopter of private capital within college sport, at a time when institutions face rapidly rising costs fuelled by Name, Image, Likeness activity, athlete compensation pressures and expanding competition for top talent. The funding will be directed toward enhancing commercial operations including sponsorship, ticketing, licensing and digital media, with the university’s foundation retaining majority control.

Leadership at Utah has emphasised that athletic decisions, such as coaching hires, scheduling and competitive operations, will remain firmly within the athletics department. This structure is designed to balance commercial interests with the academic and governance responsibilities of a public university.

Industry analysts view the initiative as a landmark moment in collegiate finance. As revenue distribution models shift and athletic departments face increasing resource constraints, the ability to bring external investors into the ecosystem is becoming an attractive, albeit controversial, tool. Supporters argue that new capital sources are essential for programs aiming to remain competitive in an environment marked by escalating operating costs. Critics, however, caution that introducing for-profit motives into higher education may compromise long-held values and reshape internal priorities.

Utah’s move comes at a time when universities across major conferences are rethinking how they generate and distribute revenue. The potential success of this model could influence other Power Five institutions to explore similar structures, particularly those looking to accelerate investment in facilities, recruitment and technology.

If Utah’s partnership delivers the anticipated financial and strategic benefits, it could stand as a blueprint for integrating private equity into college athletics in a way that retains institutional autonomy while unlocking the capital needed to compete at the highest levels of collegiate competition.