The University of Utah is close to finalizing a landmark partnership with Otro Capital that would bring more than $500 million into a newly created, for-profit athletics entity — marking the first private equity deal of its kind in college sports. Pending approval from the university’s Board of Trustees, the agreement would form Utah Brands & Entertainment LLC, an independent arm within the school’s foundation that takes over most business and revenue operations of the athletic department while keeping fundraising under university control. Utah would retain majority ownership and decision-making authority, while Otro contributes capital and operational leadership, including appointing an external president who will report to a mixed university–Otro board.
The investment includes both Otro’s nine-figure infusion and additional commitments from a hand-selected group of donors invited to purchase ownership stakes. The new entity aims to grow revenue across ticketing, concessions, sponsorships, corporate sales, and the school’s athlete revenue-sharing program — all outside traditional public-university constraints. While several universities have recently formed private revenue arms, none have partnered with an equity firm, making Utah’s deal a potential model as athletics departments nationwide face mounting financial pressures. Otro, founded by former RedBird Capital executives and active in sports ventures including Alpine Racing and Two Circles, would earn a significant share of annual revenues with a five-to-seven-year exit pathway, during which Utah maintains the option to buy out its stake.
Source: yahoo!sports
