A new era for the business of sports:UofU hands athletics over to private equity firm

The University of Utah and its foundation, University of Utah Growth Capital Partners Foundation, have finalized an agreement with private equity firm Otro Capital to create a new for-profit entity to run athletics at the Salt Lake City school.

The leadership for the new business venture, to be called Crimson Brand Partners, was also announced.

The announcement of the agreement signing contained no financial details, but Otro is committing at least $100 million to the endeavor, according to sports business website Sportico, quoting "someone familiar with the agreement."

The move to commit the future of UofU athletics to a private equity arrangement was announced six months ago by the university. At that time, the governing body was to be called Utah Brands & Entertainment, but the actual name announced earlier this month will be Crimson Brand Partners.

"When we met our trustees, we were very clear that we felt in a lot of the headwinds that we're dealing with in college athletics that we had a really innovative solution that could carry University of Utah into the future," Mark Harlan, Utah athletic director, told the media on a conference call. "Is there a way that we could create a partnership, create the revenue needed to compete at the highest level without draining critical resources at the University of Utah? I think we've done that."

"When we met our trustees, we were very clear that we felt in a lot of the headwinds that we're dealing with in college athletics that we had a really innovative solution that could carry University of Utah into the future. Is there a way that we could create a partnership, create the revenue needed to compete at the highest level without draining critical resources at the University of Utah? I think we've done that."

The first CEO of Crimson Brand Partners will be Matt Webb, who previously created commercial platforms for the New Orleans Saints, Cleveland Browns and San Diego Padres. Otro was instrumental in bringing Webb to the new venture, the university said. Webb has been serving as a consultant to the UofU foundation since the partnership was first announced.

"What Crimson Brands has the opportunity to do is create lasting impact on court and on the field," Webb said.

After spending his career in professional sports, Webb said he is pleased to be joining college athletics.

"Whether it's coaching Little League or attending an NFL game, witnessing athletes perform their craft is something we should cherish," Webb said. "I love every aspect of it: the competition, the passion, the pageantry. It means so much to so many people and that is why I wanted to spend my career in sports. Crimson Brands is being built to operate at the level you'd expect from a top professional franchise — across media, sponsorships, ticketing and fan experience. Getting to lead that build is a rare opportunity, and it's exactly the kind of challenge I came here for."

Other hires for Crimson Brand Partners include chief commercial officer Alex Schulte, a 15-year sports business veteran with experience at the Kansas City Royals, New Orleans Saints, New Orleans Pelicans and NASCAR. Joel Adams, with ticket and premium sales experience with the NFL, NBA and MLB, will be the chief ticketing officer, and 20-year finance and accounting veteran Garret Best will be the chief financial officer.

The Otro agreement with the University of Utah is the first one in the nation directly between a university's athletic department and a private equity firm in major college sports.

In April, the Big 12 Conference, of which Utah is a member, became the first major Division I conference to sign a private equity deal. The five-year agreement with RedBird Capital and Weatherford Capital provided $12.5 million to the conference and provides for each of its members to tap into a capital credit line of up to $30 million. To date, virtually every Big 12 school has declined to participate in the credit line arrangement.

In December, UofU President Taylor Randall and Harlan presented the proposed Otro connection to the board of trustees, describing a growing financial gap between Utah and its athletic rivals in richer conferences such as the Big Ten and SEC. The board unanimously authorized the partnership, and the school and Otro have spent the past six months working through the specifics of the agreement.

The new company, under Harlan's chairmanship, begins operations July 1 and will handle most of the athletic department's revenue streams, including stadium operations, ticketing, hospitality, licensing, multimedia, sponsorships and trademarks. Coaching, recruiting, scheduling, athlete support and private fundraising will stay with the university under Harlan's direction.

According to the school's announcement, the university will own a majority stake in the new company through its foundation. Otro will own a minority interest.

In May, Utah started laying off employees in its athletic department because of the pending takeover of the new entity. Harlan said many of those jobs will now be handled by Crimson Brand Partners, but that about 15 of the former UofU employees will be hired by the new firm, which is expected to grow to about 70 people.

Otro, based in New York City, was launched in 2023 and has raised about $1.2 billion to date, including its first fund, a side-car pool and capital raised for portfolio company Alpine. It previously made three investments: in the Alpine F1 racing team, sports marketing agency Two Circles and event manager FlexWork Sports.

"This new company puts the University of Utah at the forefront of developing creative and strategic solutions to the financial challenges facing college athletics programs across the country," said Taylor. "Utah will continue to lead out with unique and entrepreneurial ideas for keeping our Utes sports programs financially sustainable and foundational to the student experience."