Facing rising costs in college sports, the University of Utah hopes to put the future of its athletics department’s finances in the hands of a new for-profit company backed by a private equity firm.
The U.’s board of trustees on Tuesday cleared the way for the deal involving New York private equity firm Otro Capital.
The plan calls for the creation of Utah Brands & Entertainment, a company to oversee the athletics department’s revenue sources. Otro Capital would be the minority owner of Utah Brands and handle operations such as ticket sales, media, stadium events, concessions, and trademark and licensing matters.
The U., through its nonprofit University of Utah Growth Capital Partners Foundation, would have majority ownership of the company and Utah Athletic Director Mark Harlan would serve as the chairman of its board. The athletics department would continue to oversee student athletes and their scholarships, coaches, fundraising and NCAA compliance.
Otro describes itself as a company with “deep expertise across sports, entertainment, and media.”
University officials have declined to say how much Otro Capital plans to initially invest because the deal has not been finalized. Yahoo! Sports reported the partnership could bring in up to $500 million in revenue. The U. expects the deal to be completed early next year.
(Trent Nelson | The Salt Lake Tribune) The Big 12 Conference logo as the Utah Utes prepare to host the Baylor Bears, NCAA football in Salt Lake City on Saturday, Sept. 7, 2024.
“These are operators who have vast experience, particularly in sports operation and management field,” Harlan said of Otro Capital. “Make no mistake, we have a staff that has set all-time fundraising records.
“But this allows them to merge with this company and to be led by a great group of people that has tremendous experience.”
Private equity investors have zeroed in on college athletics in recent years.
“We’re in the Big 12, and we’re happy to be there,” Harlan said. “But we also know the conference that we’re in is below the revenue of the two other conferences [the SEC and the Big Ten].”
In the wake of the House vs. NCAA settlement, colleges can now pay their student athletes up to $20.5 million annually.
That has contributed to significant deficits at schools around the country. Last month, the University of Colorado projected a $27 million deficit for its athletics program. Earlier this year, Ohio State University claimed a $37.7 million deficit.
“In June of 2025, the trustees asked the athletics department and the university foundation to begin to explore plans to create a long-term financial plan for the viability of the athletic department and the University of Utah,” university president Taylor Randall said on Tuesday.
“There were some objectives in that: First, we wanted to maintain the financial viability of the core of this institution, recognizing that the athletic department is part of that. ... Second, there was a strong desire to preserve Olympic sports or non-revenue sports, particularly women’s sports.”
The Tribune will update this developing story.