Private equity is entering college athletics for the first time through a groundbreaking deal between the University of Utah and Otro Capital, a New York–based sports investment firm. The partnership would create a new for-profit company, Utah Brands & Entertainment LLC, to run major revenue-generating operations like ticketing, sponsorships, concessions, and athlete revenue sharing—while the university retains majority ownership and control.
The deal is expected to generate more than $500 million in total capital, combining a nine-figure cash infusion from Otro with investments from select university donors who can buy stakes in the company. Otro will receive a significant share of annual revenues, with an exit option in five to seven years that allows Utah to buy back its stake.
The new entity will operate independently from the public university structure to allow greater financial flexibility, though fundraising will remain with the school. Coaching and player decisions also stay with the university, and NCAA compliance requires Utah to keep decision-making control.
This move follows years of failed private equity talks across major conferences like the Big Ten and Big 12 and could serve as a blueprint for other schools. If approved by Utah’s Board of Trustees, it will become the first official private equity partnership in college sports history.