New Money, New Game: How Private Investors Are Changing College Sports

College sports are getting a financial boost from an unexpected source: private equity. The University of Utah has just made history by teaming up with a private equity firm to support its athletics programs. This deal is a big shift from the usual way things are done. The university has set up a foundation to oversee the partnership. The goal is to make the athletics programs more stable and bring in more money. The private equity firm involved has a lot of experience in building brands and creating exciting fan experiences. This could mean better games for fans and more money for student athletes. The university sees this as a smart move because the cost of running top-notch athletics programs is going up. Plus, student athletes are now sharing in the revenue, which adds to the financial pressure.This partnership allows the university to focus on its main goals: educating students and providing excellent healthcare. It's a way to balance the books while still competing at a high level. Other schools might be watching closely to see how this plays out. The university had four key principles in mind when setting up this deal. They wanted to keep control over their athletics programs and make sure the new company aligns with their mission. They also wanted to increase revenue from their brand and ensure the investing partner puts up real money. These principles could serve as a guide for other schools considering similar partnerships. This is a new and complex way to fund college athletics. It's not without its challenges, but it could open up new possibilities for schools struggling with rising costs and revenue sharing with athletes.