Utah finalizes college sports’ first single-school private equity deal, sets up new commercial entity

Utah has finalized its deal with the private equity group Otro Capital, the Utes announced Friday.

The announcement has been in the works for months; the school’s board of trustees approved the general idea in December. But Friday’s announcement officially makes Utah the first athletic department in college sports to team up with private equity.

Terms of the agreement were not disclosed, but Utah officials have touted a nine-figure impact to the program. Athletic director Mark Harlan called it a “really innovative solution that could carry the University of Utah into the future in a really productive manner.”

The deal includes the formation of a new entity, Crimson Brand Partners, that is intended to modernize and streamline the Utes’ 19 sports. Former New Orleans Saints and Cleveland Browns executive Matt Webb will serve as the entity’s CEO. Harlan will chair its board.

When it launches July 1 at the start of the fiscal year, Crimson Brand Partners will handle the commercial aspects of Utah sports like ticketing, branding and sponsorships. The Utes will retain control of issues like fundraising, coaching, recruiting and scheduling.

Although Otro — an investment group with a portfolio that includes Alpine’s Formula 1 racing team — will have a stake in Crimson Brand Partners, the company will make annual reports to the university’s board of trustees and foundation.

“There’s no road map,” Webb said. “We’re certainly building the plane as we’re flying.”

The reasons for embracing private equity outlined Friday were largely the same as they were in December when Utah made its first public steps to this deal. The Utes are in a Power 4 conference (the Big 12) but are not a financial juggernaut like Ohio State or Georgia. That puts Utah in a tough position as it competes at the national level against bigger, richer programs. Instead of pursuing more money from the academic side or cutting sports, the Utes decided outside investors could allow their athletics to keep competing at a high level.

Questions and concerns arose as terms were being finalized. A letter from the state auditor to the board of trustees last month raised “significant risks” about the deal unless the Utes slash spending or spike revenue. Utah athletics reported $4.69 million more in revenue than expenses in 2025, but only after, auditor Tina Cannon said, using $19.4 million in reserves.

“There is a profound risk that financial gains and investor returns may be prioritized over long-term and long-held institutional values,” the letter from Cannon said.

In a news conference Friday, Harlan said he was “very comfortable” with the governance structure and steps the Utes have taken to protect themselves financially. Harlan said inaction also brings uncertainty.

“I would argue there’s more risks of not doing anything based on the climate we’re in and the rising costs,” Harlan said.

Private equity has been circling around college sports outside Utah, too. In April, the Big 12 closed on a deal with a venture from RedBird and Weatherford Capital that will provide at least $12.5 million to the conference as the start of a broader partnership. Other schools, including Florida State, have also considered private equity.

Utah’s deal comes in the wake of the athletic department clearly searching for more significant revenue streams.

This week, the Salt Lake Tribune obtained detailed documents from a consulting firm Utah hired to review the university’s athletic department operations in 2024. Employees were granted anonymity during the firm’s interview process, and among the chief concerns were tickets to games given away for free, an inadequate  game-day experience and employee burnout.

According to the report from the Tribune, employees from various departments said they had inconsistent communication with the department’s leadership.

“It’s just week-to-week survival,” said one employee in the report.

In the year since the report, Utah had a ticket revenue increase of $3.3 million from football, men’s basketball and gymnastics.