On Friday, the University of Utah announced the school has closed a private equity deal with Otro Capital, finalizing the deal first announced last December. The Utes are officially the first athletic department to sign a private equity deal, selling off a portion of their athletic department assets.
“I think we’re going to show everybody that this idea here…is going to be something that people are going to follow and be really excited to see how it all works out,” athletic director Mark Harlan said.
Utah’s university board initially authorized the athletic department to spin off its assets into a new entity, now called Crimson Brand Partners, on Dec. 9. PE fund Otro Capital would infuse capital into the organization in exchange for an equity stake. The organization will “manage commercial operations across Utah Athletics and the broader university,” according to the school. That includes everything from sponsorships and licensing to events and media. Big 12 Studios and athletic department fundraising will remain within Utah athletics, however.
Utah did not disclose the financial terms of the deal, but Front Office Sports reported in December that the venture is expected to generate nine figures in revenue.
