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With the introduction of NIL and a congress settlement that sees schools set to pay out former athletes nearly $3 billion in total, schools across the country are rapidly looking for new revenue streams.
One of the ways that they’re doing so involves private equity deals, the most notable of which involves the Big Ten (although both Michigan and USC have strongly opposed the idea).
Now, it appears that the Utah Utes are getting ahead of the curve.
Ross Dellenger of Yahoo Sports reports that Utah is on the verge of agreeing to a deal with a private equity firm that could see the school raise in the vicinity of $500 million for its athletic programs.
Utah Utes Private Equity Deal Would Give Boosters Part-Ownership Of Athletic Teams
According to Dellenger, the Utes are set to enter an agreement with Otro Capital that would inject a nine-figure amount of cash into the athletic department.
However, the deal also provides a unique opportunity to for the school’s largest boosters.
“At the center of the project is the creation of a private, independent offshoot of the athletic department — Utah Brands & Entertainment LLC — in a first-of-its-kind partnership between a university athletic department and an equity partner,” the report states. “An executive team from Otro Capital, combined with athletics department personnel, will lead the creation and operation of the new company.”
In essence, Utah’s donors can become part-owners of the school’s athletic programs. According to Dellenger, many big-name donors are already on board with the plan.
“Already, university officials have culled a small donor base to generate millions in purchase agreements,” Dellenger reports. “The more than $500 million capital figure includes both the nine-figure cash infusion from Otro as well as those capital commitments from donors.”
The deal positions the Utes as one of the most financially strong athletic departments in the Big 12 Conference, at least for the time being.