Utah Athletics Gets a Big Boost from Private Investors

A Lucrative Deal

A big change is coming to college sports, and the University of Utah is at the center of it. The school is teaming up with Otro Capital, a private equity firm from New York. This deal could bring in up to $500 million, a substantial amount for any sports program.

Key Players

• Otro Capital will own a small part of Utah Brands & Entertainment LLC, which will manage the lucrative aspects of Utah’s sports teams.
• The firm is run by experienced professionals. Alec Scheiner, one of the co-founders, previously served as the president of the Cleveland Browns and worked with the Dallas Cowboys.

Financial Backing

This deal is linked to California’s pension fund, CalPERS, which manages money for over 1.5 million public workers. They have invested $250 million into Otro Capital’s funds, although it’s unclear if this money is earmarked for Utah’s sports program.

Broad Investment Portfolio

Otro Capital is no stranger to big investments:

• They own a significant stake in BWT Alpine Racing, a Formula One team.
• Notable investors like Patrick Mahomes, Travis Kelce, Ryan Reynolds, and Rob McElhenney have also invested in this team through Otro Capital.
• The firm also invests in other ventures such as FlexWork Sports and Two Circles, focusing on data-driven sports management.

Implications

This deal could redefine college sports by integrating private equity with athletics. With experienced leaders and substantial financial backing, Utah’s sports program could undergo major transformations.