The Univ. of Utah board of trustees unanimously approved a measure Tuesday to “create a for-profit company in partnership with New York-based equity firm Otro Capital that could help infuse more than” $500M to the athletics department, according to Josh Furlong of KSL.com. The “first-of-its kind deal” creates a “new for-profit company called Utah Brands & Entertainment LLC that will operate as part of the university structure but be outside of the athletic department.” Utah will “maintain majority ownership of the company and full control, while being in partnership with Otro Capital,” who will be a “minority owner and the source for a immediate infusion of cash into the department.” Otro Capital will “receive a percentage of the annual revenue from Utah Brands & Entertainment that will be split with the university, with a goal to exit the partnership in the next five to seven years” (KSL.com, 12/9).
YAHOO SPORTS’ Ross Dellenger notes Utah Brands & Entertainment will “house most of the components traditionally held within the university’s athletic department,” though fundraising “will remain with the school.” The new company’s “primary goal is to generate more revenue across an assortment of areas, including ticketing, concessions, corporate sales and sponsorships.” The move “isn’t completely foreign to college sports,” as a host of schools -- Kentucky, Michigan State, Clemson, Texas Tech and SMU -- have announced the creation of a private, revenue-generating entity outside of the athletic department. However, “none of those schools have partnered with an equity firm” (YAHOO SPORTS, 12/9).
