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Utah Approves First Private‑Equity Deal in College Sports, Creating For‑Profit Arm to Raise About $500 Million

The university retains majority control, with Utah Brands & Entertainment targeting an early‑2026 close after NCAA consultation.

Overview

  • Trustees authorized the creation of Utah Brands & Entertainment to centralize sponsorships, ticketing, event revenue, and licensing outside the athletics department.
  • The University of Utah Foundation will appoint a board majority, athletic director Mark Harlan will chair, and coaching, scheduling, and student‑athlete care remain under athletics.
  • Otro Capital will take a minority stake for a share of revenue, donors can buy stakes, and Utah holds a five‑to‑seven‑year repurchase option for Otro’s ownership.
  • The plan is expected to generate roughly $500 million from Otro’s nine‑figure infusion plus donor investments, with finalization targeted for early 2026.
  • NCAA president Charlie Baker praised the design, industry leaders predict more deals to follow, and analysts flag risks including cost‑cutting pressures and potential ticket price increases.