The University of Utah is on the brink of a groundbreaking partnership, one that stands to transform the landscape of college athletics. They’re poised to finalize a deal with New York’s Otro Capital, set to generate an impressive $500 million. This innovative agreement is expected to be completed in early 2026.
Utah received the green light from the NCAA to move ahead with this partnership, as reported by Yahoo Sports. However, the university must follow specific guidelines to remain compliant with NCAA standards, ensuring that key decision-makers maintain overall control.
This partnership will pave the way for the creation of Utah Brands & Entertainment LLC, an independent entity co-owned by the university and Otro Capital. Here, Utah will maintain the majority ownership, allowing it to govern essential aspects, including schedules and coaching decisions, while Otro Capital will receive a share of the annual profits.
A forward-looking aspect of this deal includes an exit strategy, which will allow Utah to potentially acquire Otro Capital’s ownership share within five to seven years.
Utah Brands & Entertainment will focus on revenue sharing with Utes athletes, with athletic director Mark Harlan appointed to lead its board. This organization will take over many operations that traditionally fell under the athletic department’s domain.
Additionally, donors will have the opportunity to invest in Utah Brands & Entertainment. When combined with the significant investment from Otro Capital, these contributions could exceed $500 million, positioning the university for long-term success amidst the evolving revenue-sharing dynamics of college athletics.
Utah Leads the Way in Private Equity
The recent House v. NCAA case has opened the doors for private equity to enter college sports. Following the settlement in 2024, universities began exploring these lucrative opportunities. Yet, Utah stands out as the first institution to forge a partnership with a capital firm. As the pursuit for long-term advantages intensifies across schools and conferences, others are likely to follow Utah’s pioneering example.
Florida State was one of the initial universities investigating private equity options, but concrete results didn’t manifest. Proposals also circulated within entire conferences, including a Big 12 initiative aiming to generate up to $1 billion in exchange for a 20% ownership stake, but it never moved forward. The Big Ten is currently evaluating similar opportunities, though not all member schools support a potential $2 billion deal.
Athletic departments that generate greater revenue can allocate more resources to their athletes, shaping the new reality following the House settlement. Increased funding enhances recruitment and retention of talented players, ultimately impacting the pursuit of championships. If Utah’s model proves to be successful, a trend toward private equity investments is likely to become much more prevalent in the years to come.
