Utah athletics becomes first to close private equity deal

The University of Utah finalized a groundbreaking partnership with a private equity firm on Friday to help fund the school's 19 athletic programs.

The deal with New York-based Otro Capital creates a new company called Crimson Brand Partners, which will manage the athletic department's commercial operations including events at stadiums and arenas, branding, licensing and sponsorships, ticketing and digital media.

"I think we're going to show everybody that this idea here ... is going to be something that people are going to follow and be really excited to see how it all works out," Utes athletic director Mark Harlan told Front Office Sports of the first-of-its-kind deal.

The university will continue to handle coaching, recruiting, scheduling, student-athlete support and private fundraising. Utes Productions, the live sports production and broadcast arm of the university, and the athletics facilities will remain under school ownership.

The Utah board of trustees authorized the partnership on Dec. 9. Financial terms of the deal were not disclosed, but Front Office Sports reported that the venture could ultimately generate nine-figure revenues.

"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," Utah 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."

Harlan will serve as chairman of the board for Crimson Brand Partners, whose leadership team will include new CEO Matt Webb, who has worked in the front offices of the New Orleans Saints and Pelicans, the Cleveland Browns and the San Diego Padres.

"This isn't a sponsorship or a licensing deal; it's a real operating partnership," Webb said. "What Utah is standing up with Crimson Brand Partners will provide Utah Athletics with the resources to compete at the highest level and do it in a way that takes pressure off the rest of the university -- growing the brand, growing revenue, making gamedays better, and freeing up university dollars for scholarships, research and students."

Crimson Brand Partners will begin operations at the start of the fiscal year on July 1.

--Field Level Media