The University of Utah announced its plans for a partnership between the athletics department and a private equity firm — a first for college sports.
According to Deseret News, the Utes will create a for-profit company through the University of Utah Growth Capital Partners Foundation and use it to “infuse hundreds of millions of dollars” into the athletics department.
The for-profit company, Utah Brands & Entertainment, will oversee the revenue rights to licensing, events, multimedia, sponsorships, ticketing and trademarks, and its majority owner will be the University of Utah Growth Capital Partners Foundation. Otro Capital will be a minority owner.
The plan was presented to the university’s board of trustees on Tuesday, and members voted to allow school administrators to begin negotiations. If it comes to fruition, the company could generate $500 million for the Utes’ athletic department.
“This will give our institution, particularly our athletic institution, the upside it needs to thrive in the new revenue-sharing and NIL era,” university president Taylor Randall told reporters after the board meeting. “It also allows the other missions of our university to thrive.”
The private equity plan is an alternative to routes other universities have taken to bolster athletic departments’ budgets, including raising student athletics fees, cutting research funding or cutting some athletics teams altogether.
Randall said, “The university is committed to maintaining Olympic or non-revenue sports.”
As the plan was proposed, coaches and athletes would continue to fall under the umbrella of the athletic department, but some athletics department staff could be restructured into Utah Brands & Entertainment. The for-profit company would be overseen by a seven-member board of university staff, including the athletic director.
