The University of Utah’s plan to bolster its athletics program with private equity took some state lawmakers by surprise.
One of them wants to make sure that doesn’t happen again.
HB297 would require the Utah Legislature’s approval before a public university’s athletics departments could get involved with private equity firms.
The bill from Rep. Jason Kyle, R-Huntsville, appears to be a direct response to the U.’s deal with New York-based private equity firm Otro Capital, which officials say would infuse the Utes’ athletic department with hundreds of millions of dollars. The Utah board of trustees unanimously approved the deal in early December.
Kyle’s bill has not yet received a committee hearing.
If it does become law, it still might not impact Utah’s deal. HB297 has a proposed effective date of May 6 — and the U. expects to have its agreement with Otro Capital finalized before then.
“The University’s foundation is finalizing the details of the contract with Otro. The transaction is on track,” a U. spokesperson said in a statement.
In a news conference on Jan. 6 Utah Athletic Director Mark Harlan said that the deal would likely be finalized “later this month [January] or the first part of next [February]. … We’re doing a lot of prep work with the real belief that we’ll get the deal done.”
Meanwhile, U. President Taylor Randall “has had conversations with the bill’s sponsor to provide additional information and context,” the university spokesperson added.
The bill, however, would require Utah to get legislative approval to “renew, or materially amend” its deal or to enter into a new agreement in the future.
Utah’s deal with Otro Capital is believed to be the first of its kind between a public university’s athletics department and a private capital firm. The topic has drawn interest — and criticism — from federal lawmakers.
After Utah announced its private equity plans, U.S. Rep. Michael Baumgartner (R-Washington) reignited a conversation about his federal proposal, the PROTECT Act. The legislation would ban universities from entering into agreements with private equity or sovereign wealth funds.
The federal House Committee on Education and Workforce this week asked the U. and Randall to schedule a briefing to discuss the school’s planned partnership with Otro, according to a report from Sportico.