Utah's Landmark $500 Million Deal with Private Equity

The University of Utah has entered into a $500 million partnership with Otro Capital, a New York-based sports private equity firm, to create a shared ownership entity called Utah Brands & Entertainment LLC.

This partnership will operate outside the traditional university framework, handling athletics business and financial functions while allowing the university to retain majority ownership and decision-making authority.

The deal is expected to be approved following a review by the Utah Board of Trustees, and it includes an exit strategy allowing the university to buy back Otro Capital's stake within five to seven years.

The new entity aims to enhance Utah's athletic program, focusing on facilities and recruiting, while also enabling donors to purchase stakes in the company. This agreement is significant as it marks the first formal partnership between a university and a private equity firm following the 2024 House vs.

NCAA case, which opened the door for such negotiations in college athletics.