The University of Utah is set to embark on an unprecedented venture in college athletics by forming a significant private equity partnership. This groundbreaking agreement with New York’s Otro Capital is projected to generate around $500 million for the university, with the finalization expected by early 2026.
Approval from the NCAA has been obtained, albeit with stipulations essential for maintaining NCAA membership. University President Taylor Randall and Athletic Director Mark Harlan retain the authority for all major decisions related to the deal.
This initiative will give rise to a new for-profit entity, Utah Brands & Entertainment LLC. Functioning as an independent extension of the athletic department, this firm will be co-owned by both the university and Otro Capital. While Utah will hold the majority stake and control key decisions—such as scheduling and coaching—Otro Capital will receive a share of the entity’s annual revenue.
Furthermore, the agreement entails an exit strategy that allows Utah to buy out Otro Capital in five to seven years. Utah Brands & Entertainment will manage revenue-sharing for Utes athletes, with Harlan taking charge of its board and electing a president from outside the university.
Importantly, donors will have opportunities to invest in Utah Brands & Entertainment. By combining donor investments with a multi-million dollar agreement with Otro Capital, Utah stands to accumulate over $500 million, ensuring the program’s sustainability and competitiveness in the ever-evolving landscape of college athletics.
Setting a Precedent for College Sports
The House v. NCAA legal case has opened doors for private equity in athletics, and following a settlement in 2024, many institutions began exploring these new avenues. Yet, as of now, none had finalized deals until Utah took this pioneering step, which sets a standard for future engagements.
While Florida State previously considered such investments, no commitments were made. Conference-wide proposals emerged, where the Big 12 had a 20% ownership exchange on the table that could amass $1 billion but ultimately decided against it. Currently, the Big Ten is deliberating a similar large-scale investment, although not all member schools agree on a potentially $2 billion plan.
As athletic departments generate more revenue, they can better support their athletes. This new reality post-House settlement emphasizes that a school’s financial strength directly impacts talent recruitment and retention. Should Utah’s model prove effective, it could very well lead to a widespread acceptance of private equity investments across the landscape of college sports.
