Utah has finalized its deal with the private equity group Otro Capital, the Utes announced Friday.<\/p>\n
The announcement has been in the works for months; the school\u2019s board of trustees approved the general idea in December<\/a>. But Friday\u2019s announcement officially makes Utah the first athletic department in college sports to team up with private equity.<\/p>\n 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 \u201creally innovative solution that could carry the University of Utah into the future in a really productive manner.\u201d<\/p>\n The deal includes the formation of a new entity, Crimson Brand Partners, that is intended to modernize and streamline the Utes\u2019 19 sports. Former New Orleans Saints and Cleveland Browns executive Matt Webb will serve as the entity\u2019s CEO. Harlan will chair its board.<\/p>\n 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.<\/p>\n Although Otro \u2014 an investment group with a portfolio that includes Alpine\u2019s Formula 1 racing team \u2014 will have a stake in Crimson Brand Partners, the company will make annual reports to the university\u2019s board of trustees and foundation.<\/p>\n \u201cThere\u2019s no road map,\u201d Webb said. \u201cWe\u2019re certainly building the plane as we\u2019re flying.\u201d<\/p>\n 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.<\/p>\n Questions and concerns arose as terms were being finalized. A letter from the state auditor to the board of trustees last month raised \u201csignificant risks\u201d about the deal unless the Utes slash spending or spike revenue. Utah athletics reported<\/a> $4.69 million more in revenue than expenses in 2025, but only after, auditor Tina Cannon said, using $19.4 million in reserves.<\/p>\n \u201cThere is a profound risk that financial gains and investor returns may be prioritized over long-term and long-held institutional values,\u201d the letter from Cannon said<\/a>.<\/p>\n In a news conference Friday, Harlan said he was \u201cvery comfortable\u201d with the governance structure and steps the Utes have taken to protect themselves financially. Harlan said inaction also brings uncertainty.<\/p>\n \u201cI would argue there\u2019s more risks of not doing anything based on the climate we\u2019re in and the rising costs,\u201d Harlan said.<\/p>\n Private equity has been circling around college sports<\/a> outside Utah, too. In April, the Big 12 closed on a deal with a venture from RedBird and Weatherford Capital<\/a> 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.<\/p>\n Utah\u2019s deal comes in the wake of the athletic department clearly searching for more significant revenue streams.<\/p>\n