SALT LAKE CITY (AP) — The University of Utah has announced a plan to help the athletic department generate new revenue streams, in part through a first-of-its-kind partnership with a private equity firm.
The school announced Tuesday the formation of Utah Brands & Entertainment LLC, which will be owned by the university’s foundation. It’s being touted as a way to built the school’s brand and enhance the athletic programs. The new company could generate around $500 million in capital, according to Yahoo Sports.
In a joint message, school president Taylor Randall and athletic director Mark Harlan spelled out the groundwork, saying the university will transfer some of its revenue-generating operations from athletics and auxiliary services to Utah Brands & Entertainment.
Through the new entity, the school will build its brand. That will include overseeing corporate sponsorships, ticketing, event-related revenues and campus-wide university trademarks and licensing.
The new business model has the backing of the university’s board of trustees and the deal could be finalized by early next year. The school added it plans to partner with prominent university supporters along with Otro Capital, a private equity firm with a sports and entertainment background.
The inclusion of private equity is a first in college sports, and it follows seismic changes in the industry, with players able to earn money from their name, image and likeness and receive direct payments from schools.
“Importantly, the university is not selling parts of our athletics department, ceding operational control to a third party or relinquishing control of any facilities,” Randall and Harlan wrote to the Utah community. “Decisions regarding sports, coaches, scheduling, operations, student-athlete care and other athletics matters will remain solely with the athletics department. … The university’s foundation will appoint a majority of the board of directors of Utah Brands & Entertainment, and the board will be chaired by the athletics director.”
The message from Randall and Harlan said that “as the world of college athletics continues to shift, this step positions us to remain competitive, innovative and firmly aligned with our academic mission, while continuing to unite our community through the power of Utah athletics.”
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