SALT LAKE CITY — Facing rising costs in college sports, the University of Utah hopes to put the future of its athletics department’s finances in the hands of a new for-profit company backed by a private equity firm.
The U.’s board of trustees will vote Tuesday on whether to approve the deal involving New York private equity firm Otro Capital.
The proposal calls for the creation of Utah Brands & Entertainment, a company to oversee the athletics department’s revenue sources. Otro Capital would be the minority owner of Utah Brands and handle operations such as ticket sales, media, stadium events, concessions, and trademark and licensing matters.
The U., through its nonprofit University of Utah Growth Capital Partners Foundation, would have majority ownership of the company and Utah Athletic Director Mark Harlan would serve as the chairman of its board. The athletics department would continue to oversee student athletes and their scholarships, coaches, fundraising and NCAA compliance.
Otro describes itself as a company with “deep expertise across sports, entertainment, and media.”
University officials have declined to say how much Otro Capital plans to initially invest because the deal has not been finalized. Yahoo! Sports reported the partnership could bring in more than $500 million in revenue. The U. expects the deal to be completed early next year.
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