University of Utah finalizes first-of-its-kind private equity deal for athletics department

SALT LAKE CITY — The long wait is over.

Six months after the University of Utah board of trustees unanimously approved a measure to pursue a first-of-its-kind deal to partner with New York-based equity firm Otro Capital, the two parties have finalized a deal that will infuse the university’s athletic department with much-needed money and provide other strategic benefits for future growth.

The university announced Friday morning the deal was signed and will officially take effect with the new fiscal year, which starts on July 1. Financial details were not released Friday.

“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,” university president Taylor Randall said. “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.”

As part of the new private equity partnership — the first such deal inked with a university and likely a potential prototype for other universities around the country — Utah’s athletics department will be split in two, with part of its operations moving into a for-profit company called Crimson Brand Partners.

That for-profit company will operate within the university structure but be its own entity, with Utah controlling a majority share of ownership in the company. Otro Capital will hold several seats on the board as a minority owner.

Within Crimson Brand Partners, the company will oversee events at stadiums and arenas, branding, licensing and sponsorships, ticketing, and digital media; while the athletic department will continue to oversee coaching, recruiting, scheduling, athlete support and private fundraising.

The university has already begun its transition of several units into the new company, with most of those prior positions eliminated under the athletic department and moved to the for-profit company, which was first reported by the Salt Lake Tribune. Though the positions were moved, the university said many of the people impacted could be rehired within Crimson Brand Partners.

Crimson Brand Partners has brought on Matt Webb, a sports business executive who previously worked with the New Orleans Saints and Pelicans, to serve as CEO, where he will oversee the day-to-day operations, with Utah athletic director Mark Harlan chairing the company’s board.

Joining Webb in the leadership team will be Alex Schulte, who will serve as chief commercial officer after leadership roles with the Kansas City Royals, New Orleans Saints and Pelicans; Joel Adams, the chief ticketing officer who has several years of experience in professional leagues; and Garrett Best, who will serve as chief financial officer after 20 years in finance.

“We’re going to build lasting and sustainable revenue channels, so that our Olympics athletes, or Olympic sports and our non-revenue generating sports and athletes, can continue to pursue their athletic dreams at the highest level possible,” Webb said.

Utah’s athletic department reported $4.69 million in surplus for the 2025 fiscal year (July 1, 2023 – June 30, 2024), but face an uncertain future in the ever-changing landscape of collegiate athletics.

The House settlement that went into effect on July 1, 2025 meant Utah (and every other participating school) was on the hook for up to $20.5 million in revenue share to the athletes. That, mixed with several other elements within collegiate athletics, left Utah to pursue a private equity deal to help provide stability and add an experienced partner to help “mentor” in future deals to provide added revenue.

“We weren’t interested in pure capital, we were interested in a partner,” Randall said in December. “So when you sit down and you’re trying to find a partner, that’s a very, very different process than just trying to find money. Right now there are millions upon millions of dollars flooding into athletics for dollars, so this is predicated on a set of individuals that are aligned with our values and aligned with our incentives.”

With any venture into private equity there are risks, but the University of Utah believes it has done all it can to mitigate the risks associated with such a partnership.

“I would argue that there’s more risks of not doing anything based on the climate that we’re in and the rising costs for player compensation and operations,” Harlan said. “So when you look at risks, you have to look at both sides of that equation, but I’m very comfortable after a lot of smarter people than I have looked at this deal 15 different ways, sideways, that we’re comfortable, that are our risks are covered; but most importantly, our opportunities are right there in front of us.”

Utah’s partnership with Otro Capital is not expected to be a long-term deal, with the expectation that the New York-based firm will exit in the next five to seven years; however, details of that future exit were not immediately provided.

“The concept here is that we have a nice long runway to work with Crimson Brand Partners to get better, and when we get to that point years from now, we’ll obviously, be able to explain that one a little bit better,” Harlan said. “But it’s fair to say that we’re very, very excited about all the details that were worked out in that, and the most important thing is we’ve got plenty of years down the line to worry about it.”

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