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University of Utah Finalizes Private Equity Deal to Create Crimson Brand Partners

The university says the partnership is designed to boost commercial revenue to stabilize funding for its 19 sports amid rising athlete compensation costs.

Overview

  • The University of Utah and its foundation finalized the partnership with New York-based Otro Capital on Friday, June 12, and Crimson Brand Partners will begin operations on July 1.
  • Crimson Brand Partners will take over commercial operations such as ticketing, sponsorships, licensing, events, and digital media while the university keeps coaching, recruiting, athlete support, scheduling, and facilities ownership.
  • The university will hold a majority stake through its foundation and Otro will be a minority investor with board seats in a deal structured with an expected Otro exit in roughly five to seven years.
  • The university did not disclose financial terms, though independent reporting cites commitments ranging from at least $100 million to estimates near $500 million.
  • The transition prompted a reduction-in-force in Utah Athletics in late May with about 15 employees initially moving into the new company and the venture framed as a prototype for how schools might raise scalable revenue under recent college-athletics changes.