College Sports Program Is About to Become For-Profit for the First Time
The professionalization of college sports is reaching a whole new level.
The University of Utah is on the cusp of striking the first industry partnership with a private equity firm, reports Ross Dellenger of Yahoo! Sports. While dozens of schools have pursued similar arrangements in recent years, including power conferences such as the Big 12 and Big Ten, none of those deals came to fruition.
With Utah now creating a for-profit entity to operate its athletics business, the model has been changed forever. Whether that's a positive or negative for the integrity of the game remains to be seen. But as far as revenue is concerned, it will likely be a big win.
The new venture is expected to produce more than $500 million for the school.
What Does the Deal Say?
Utah is partnering with Otro Capital, a New York-based sports private equity firm. The two parties will create a separate off shoot, Utah Brands & Entertainment LLC, which will operate as a for-profit company.
The school will be the majority owner and possess decision-making authority, while Otro Capital will earn a percentage of annual revenue. High-profile donors will also be permitted to buy in.
Like other for-profit companies, Utah Brands & Entertainment LLC will seek to maximize revenue. The company will also oversee the revenue-share pay system for Utes athletes.
Though multibillion-dollar media rights deals and NIL contracts have skewed the notion that college sports are an amateur competition, Utah's partnership with an NYC-based private equity company abolishes the pretense for good.
What's the Reaction?
Given the financial strain that many athletic departments now face-- largely due to NIL expenses and conference realignment -- mid-tier programs like Utah are strapped for cash.
The Utah Board of Higher Education endorsed the reported deal in a statement, calling the model "forward-looking."
Utah Board of Higher Education statement on the Utes' landmark private equity deal: pic.twitter.com/IPtRoCxnV7
— Rev. Ryan Aston (@RyanAston) December 9, 2025
Critics, however, point out that profit-seeking and college sports are incongruous. With private equity now in the mix, ticket and concession prices could use. "[Utah] essentially sold part of its athletic soul to Wall Street; and boy, this is not going to end well," said a popular TikToker.
Others mentioned that most sports programs don't produce any revenue, leading to the possibility they could get cut.
"Do you still root for your school when it’s just professionals wearing your colors who don’t even attend your school?," added sports business guru Darren Rovell.
Private equity guy notes:
— Kevin Van Valkenburg (@KVanValkenburg) December 9, 2025
-Does *everyone* need helmets?
-What if we replaced this scout team with AI?
-What if we bought Weber State, rolled it up into our operations, then eliminated redundancy?
-Our fan sweatshirts transition to a subscription model, can't be owned outright https://t.co/kveM7SrFHH
It’s so beyond over. https://t.co/vugydBfV0R
— Jack Mac (@JackMacCFB) December 9, 2025
Someone finally broke the seal on private equity. Expect others to follow. https://t.co/LFlZLuHuxU
— Stewart Mandel (@slmandel) December 9, 2025
One thing is for certain: the days of amateurism, or even perceived amateurism, are over.