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Utah Moves to Create For-Profit Athletics Company With Private Equity Partner

Leaders cite rising athlete-compensation costs.

Overview

  • Trustees are set to vote Tuesday on forming Utah Brands & Entertainment, a majority university‑owned LLC with Otro Capital as a minority investor.
  • The new company would run ticketing, media, stadium events, concessions, trademarks and licensing, while the university retains oversight of athletes, scholarships, coaches, fundraising and NCAA compliance.
  • Reporting estimates the venture could raise about $500 million, with donor stakes permitted and an exit window of five to seven years that includes a university buyback right.
  • Administrators say negotiations with Otro would begin after board approval, with any final agreement not expected until next year.
  • The proposal responds to the House v. NCAA settlement that enables direct athlete revenue sharing, with coverage noting NCAA and congressional caution toward private investment in college sports.