Otro Capital is closing in on a landmark deal with the University of Utah that is expected to generate more than $500m and create the first private equity partnership in US college athletics, Yahoo Sports reported. 

The agreement will establish Utah Brands & Entertainment, a new for-profit entity that will manage the commercial operations of Utah’s athletics department. The university will retain majority ownership and decision-making authority, while Otro contributes capital and operational expertise drawn from its global sports portfolio.

The new company will oversee revenue streams including ticketing, concessions, corporate partnerships, sponsorships, and athlete revenue-share payments. Donors are being offered the opportunity to purchase equity stakes, contributing to the project’s nine-figure capital pool. Fundraising functions will remain with the university.

An external president will lead the business and report to a board chaired by athletic director Mark Harlan, with seats for trustees and Otro executives. The structure allows Utah athletics to operate with more flexibility than a traditional public-sector department, while remaining compliant with NCAA rules that require university leaders to retain majority control.

The deal positions Utah ahead of peer institutions as private equity gains traction in college sports. Several universities, including Kentucky, Clemson, and Michigan State, have formed private revenue-generating units, but none have brought in a private equity partner. Rising operational costs and the shift toward revenue-sharing with athletes have pushed athletic departments to explore new ownership and funding structures.

Otro Capital, founded by former RedBird Capital executives, invests in sports teams, leagues, and related businesses. Its portfolio includes Alpine Racing, Two Circles, and FlexWork Sports. The firm will own a significant minority stake in the Utah venture, with an exit option available to the university after five to seven years.

Utah’s partnership would mark a turning point for the sector, creating a model that other schools and conferences may seek to replicate as the commercialisation of college athletics accelerates.

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