University of Utah Announces Landmark Private Equity Deal
Dec 9, 2025, 11:19 AM | Updated: 12:40 pm
Utah Athletics reaches agreement with investment firm Otro Capital. (Photo: Joel A. Davidson)
(Photo: Joel A. Davidson)
SALT LAKE CITY — With an eye on remaining one of the nation’s top athletic programs in the rapidly evolving world of college sports, Utah Athletics is moving forward with a groundbreaking private equity partnership and corporate restructuring that could fundamentally reshape how the Utes fund and operate their athletics enterprise.
The news, broken first by Yahoo Sports’s Ross Dellenger Tuesday morning, specified that the entire Utah Athletics Department will be reorganized into a newly created for-profit holding company, Utah Brands & Entertainment LLC, co-owned with New York-based private equity firm Otro Capital.
The deal — believed to be the first of its kind in collegiate athletics — is expected to generate up to $500 million in new capital for Utah’s athletic department through a combination of the equity infusion and donor commitments. The university retains majority ownership and decision-making of Utah Brands & Entertainment.
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Utah Brands & Entertainment LLC
“First of all, want to thank our University’s Board of Trustees for the intense scrutiny that they have given to this new and innovative way to fund University of Utah athletics,” President Taylor Randall shared of the venture.
He continued, “we are excited about this new innovation in University of Utah athletics, this will give our institution, particularly our athletic institution, the upside it needs to thrive in the new revenue sharing and NIL era.”
This corporate offshoot will assume responsibility for major commercial operations historically housed within the athletic department, including ticket sales, media and broadcast ventures, stadium events, concessions, licensing and trademark management, corporate sponsorships, and other revenue streams.
Under the agreement approved by the NCAA and the University of Utah Board of Trustees, the university will retain majority ownership and decision-making authority within the new company, while Otro Capital will hold a minority stake and receive a share of annual revenue based on performance.
The structure includes an exit strategy after five to seven years, during which the university has the right to repurchase Otro’s ownership stake.
Athletics Director Mark Harlan is slated to chair the board of Utah Brands & Entertainment, which will elect an external president to oversee day-to-day operations. Traditional fundraising and coaching functions will continue to operate under the university’s umbrella, while the new entity focuses on commercial expansion and revenue growth. Enlarging the donor base with equity participation options also allows Utah supporters to purchase a stake in the venture — a novel approach not yet seen at peer institutions.
“We’re going to use this to find excellence in Utah Athletics,” President Randall shared.
This process has been underway for over a calendar year. Utah was focused on finding the best cultural fit and landed on Otro Capital. Multiple firms were vetted.
— Steve Bartle (@BartleKSLsports) December 9, 2025
Leadership and operations will be staffed jointly by university and athletics officials, as well industry professionals is intended to unlock new income opportunities with greater agility than a traditional university structure typically allows.
What does this mean for Utah NIL?
Many will be wondering what this means for Utah’s NIL. With this, Mark Harlan believes that this will have a significant impact on Utah’s NIL opportunities.
“We’re bringing in folks that have been involved in NIL in the professional space for years,” Harlan said. “I’ve been real proud of our efforts and how we’ve handled NIL. You don’t retain the kind of players that we’ve had in many sports if we don’t have a very robust program. But this allows us— in our recruiting process and retainment process, to really show what we are now surrounding our student athletes with appropriate and authentic NIL going forward.”
So, this does not directly fund Utah’s NIL opportunities, but it provide the platform and the professional understanding and know-how to generate more true 3rd-party NIL deals.
Harlan continued on about the importance of abiding by the rules and adhering to compliance of NIL. However, he also feels this will be important in providing Utah student athletes the best opportunities.
“Having the best platform for these student athletes that have worked on their brand through their hard work, and very best opportunities to work with pros, that have been doing this forever to enhance that brand and to include them in the deals that were out in the marketplace that is now legal, so we can do all those things that have changed and maximize those opportunities.”
The Bottom Line
The partnership is a bold strategy to navigate the financial realities of the post-House v. NCAA revenue-sharing era, in which schools will have faced increased cost burdens for athlete compensation and broader program sustainability.
In contrast to traditional holding company proposals occasionally floated by other universities, Utah’s deal pairs private capital with institutional control to balance innovation with governance.
University leaders believe this new model will help protect long-term stability, support upgrades across, strengthen competitiveness in the Big 12, and provide a funding foundation adaptable to future changes in college athletics.
If successful, Utah’s approach could serve as a blueprint for other programs exploring private capital solutions in a landscape where traditional revenue sources and rising expenses continue to challenge athletic departments nationwide.
