Utah Athletics Gets a Big Boost from Private Investors

A big change is coming to college sports, and the University of Utah is at the center of it. The school is teaming up with Otro Capital, a private equity firm from New York. This deal could bring in up to $500 million, which is a lot of money for any sports program. The firm will own a small part of Utah Brands & Entertainment LLC. This company will handle big money-making parts of Utah’s sports teams. Otro Capital is run by people with serious sports experience. One of the co-founders, Alec Scheiner, used to be the president of the Cleveland Browns. He helped fix up their stadium and training center. Before that, he worked with the Dallas Cowboys. So, these guys know their way around sports and money. This deal is also connected to California’s big pension fund, CalPERS. They manage money for over 1. 5 million public workers in California. They’ve put $250 million into Otro Capital’s funds. But it’s not clear if this money is going to Utah’s sports program or somewhere else. Private equity firms don’t have to share much about where their money comes from. Otro Capital isn’t new to big investments. They own a big piece of a Formula One racing team called BWT Alpine Racing. They’ve even talked about selling their stake in the team. Some big names like Patrick Mahomes, Travis Kelce, Ryan Reynolds, and Rob McElhenney have also invested in this team through Otro Capital. Besides sports, Otro Capital invests in other companies too. They own parts of FlexWork Sports, which runs athlete-led camps, and Two Circles, a company that uses data to help sports teams make more money. So, they’re not just about sports; they’re about making money in different ways. This deal could change how college sports work. It’s a big step towards mixing private money with college athletics. And it’s not just about the money; it’s about who’s behind it. With experienced people and big investors involved, Utah’s sports program could see some major changes.