REPORT: Utah Entering Landmark Deal with Private Equity Firm Expected to Raise $500 Million
Written by admin on December 10, 2025
While everyone was busy debating Notre Dame’s exclusion from the College Football Playoff (CFP) and arguing over the Pop-Tarts Bowl, the University of Utah was shaping the future of college athletics.
According to a report from Yahoo Sports’ Ross Dellenger, the University of Utah has entered into a $500 million partnership with a private equity firm to create a shared ownership of a for-profit entity that will operate the athletics business and financial functions outside the traditional university framework.
The deal is expected to be approved on Tuesday following the Utah Board of Trustees’ review.
The firm is Otro Capital, a New York-based sports private equity firm.
At the heart of the deal is a shared management group that will include an executive team from Otro Capital and athletics department personnel. The combination will be known as Utah Brands & Entertainment LLC.
The group will operate within the university’s foundation, and the school will retain majority ownership and decision-making authority over the partnership. Otro will earn a percentage of the joint venture’s annual revenue.
“The agreement comes with an exit strategy five to seven years down the line, and the university possesses the right to purchase Otro Capital’s ownership stake,” CBS Sports reports.
Utah Brands & Entertainment will absorb much of the decision-making and responsibilities associated with traditional athletic departments. Donors who wish to partake in the new venture and benefit from it will be able to purchase stakes in the company. It is hoped that with the large initial infusion of capital plus contributions from donors, the new company, Utah, will find itself at the top or at least among those at the top of the financial mountain of college football.
However, safeguards have been put in place. An exit strategy with a five- to seven-year horizon is in place. In addition, the university possesses the right to purchase Otro Capital’s ownership stake.
Schools and conferences became free to negotiate deals with private equity firms in the aftermath of the 2024 House vs. NCAA case. While several schools and athletic conferences explored the idea, and some even came close to signing, Utah is the first school to sign a formal agreement with a private equity firm.
