The University of Utah is finalizing a landmark private equity partnership that would be the first of its kind in college athletics. Utah is set to enter an agreement with New York-based firm Otro Capital that will help generate an estimated $500 million for the school, it announced on Tuesday. The deal is expected to be finalized in early 2026.
Utah received clearance from the NCAA to enter the partnership, according to Yahoo Sports. It must abide by certain stipulations to remain an NCAA member, though. For instance, university president Taylor Randall and athletic director Mark Harlan must retain majority decision-making control.
With the groundbreaking deal comes the creation of a for-profit entity, Utah Brands & Entertainment LLC, which will exist as an independent offshoot of the athletic department co-owned by the university and Otro Capital. The school will be the majority owner and possess decision-making authority (including on schedules, coaches and other pertinent factors) while Otro Capital earns a percentage of the company’s annual revenue.
The agreement comes with an exit strategy five to seven years down the line, and the university possesses the right to purchase Otro Capital’s ownership stake.
Utah Brands & Entertainment will oversee the revenue-sharing efforts with Utes athletes. Harlan is set to chair its board, which will elect a president from outside the university. Personnel, divisions and operations that were traditionally under the athletic department’s umbrella will largely exist as part of the new company.
Donors will also be able to purchase stakes in Utah Brands & Entertainment. Between the investments from donors and a nine-figure deal with Otro Capital, Utah could raise more than $500 million, setting…
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