To manage its revenue generating sports, University of Utah is forming a corporate entity. Private Equity firm Otro Capital will be a minority stake holder in the firm.
In a groundbreaking Tuesday vote, Utah’s board of trustees green-lit the creation of Utah Brands & Entertainment—a corporate LLC that will own and operate every dollar-driving athletic operation on campus. The university will hold the majority ownership, while Otro Capital secures a substantial minority piece. And here’s what’s wild: this is the first time a private equity firm has gotten actual equity in a college athletic structure.
Why This Deal Matters
This isn’t just another lending arrangement dressed up as innovation. Other schools—Clemson and Kentucky, for example—have built corporate holding companies. But those didn’t involve PE ownership. Otro Capital isn’t just loaning money and collecting interest. They’re buying in. They’re partners. That changes everything.
The entity will handle everything from ticket sales to concessions, sponsorship deals to merchandise licensing. Think of it as the athletic department running like an actual business—because now it literally is one. Sources tell Front Office Sports the revenue projections sit comfortably in nine-figure territory.
The Financial Pressure Cooker
The House settlement turned college sports into a financial warzone. Schools now face revenue sharing obligations and expanded scholarship rosters that cost millions. Utah needed a solution. So they built one from scratch.
Board members grilled university president Taylor Randall and athletic director Mark Harlan for over an hour before the unanimous vote. Why Otro? What happens if the projections tank? What’s the real risk here? Randall didn’t flinch. He said the risk of doing nothing was greater than trying something bold. He also clarified that Utah can buy back Otro’s shares under specific circumstances—including if the PE firm decides to walk away.
The PE Firm Behind the Deal
Otro Capital brings serious operating chops to the table. Their portfolio includes Alpine Racing’s F1 team and sports analytics powerhouse Two Circles. The three cofounders—Alec Scheiner, Brent Stehlik, and Niraj Shah—all worked together at RedBird Capital Partners. Before that, Scheiner held executive roles with the Browns and Cowboys. Harlan called them “the perfect match.”
Until now, private equity has circled college sports without finding the right entry point. Elevate’s $500 million initiative with Velocity Capital Management? That’s private credit—loans with interest payments. This is different. This is ownership. This is the dam breaking.
“PE can add a ton of value. It’s not just capital, it’s expertise,” sports attorney Brian Anderson previously told Front Office Sports. “These funds often have portfolios of companies they can leverage to help schools commercialize stadiums, naming rights, sponsorships, fan engagement—all the things pro teams already do.”
Other schools are watching. And they’re taking notes.
