Is this $500M private equity deal the end of college sports?
The University of Utah made a deal with Otro Capital to create a for-profit company that will operate their athletics.
Video Transcript
The University of Utah just entered a $500 million partnership with a private equity firm to run their athletic department as a separate for-profit business.
The new company will be called Utah Brands and Entertainment LLC, and it will be run by University personnel and an executive team from Otro Capital.
The company will focus on making more money from Utah athletics.
And it will basically do everything that the athletic department did, Handling ticket sales, concessions, corporate sponsorships, licensing deals, and the athlete revenue share pay system.
This new separate company gives the athlete Department gets a huge infusion of capital and gains more flexibility to operate beyond Public university.
However, all decisions about coaching staff Player acquisition will remain solely with the university.
Personnel: a rule required by the NCAA to approve this deal.
Now, over the last several months, other schools like Kentucky, Michigan State and Clemson have also formed private companies to run their athletics Departments, but Utah is first to partner with a private equity firm to run company.
But what do you think?
Does this arrival of big institutional money Signal the end of college sports as we know it?
