Private Equity Coming to Utah Utes

[swilsonsp4]

In a $500M cash-infusion deal, Otro Capital will own a large minority portion of Utah athletics, which will be spun into a separate entity from the university itself. Kentucky and a couple others have done this as well, except without the private equity portion.

We live in a new world. The Utes won't be the only program to go down this road. Brett Yormark has (at least twice) tried to talk B12 presidents/AD's into signing with a private equity firm.

Sources: University of Utah nearing landmark private equity deal expected to generate $500 million

[Lobot]

The academics are going to get their wish finally. Schools and Sports will be completely separate business entities before we're done here.

JC needs to start lining up capital resources for this trend. His dept is about to be an actual business instead of one in name only.

Also begs the questions:

if we go down this road, is JC the right CEO after the changeover?

In addition, will the University still be affiliated with the sports program as anything other than a corporate sponsor of a professional sports entity like Euro club sports teams.

[red_n_black_attack]

The academics are going to get their wish finally. Schools and Sports will be completely separate business entities before we're done here.

JC needs to start lining up capital resources for this trend. His dept is about to be an actual business instead of one in name only.

Also begs the questions:

if we go down this road, is JC the right CEO after the changeover?

In addition, will the University still be affiliated with the sports program as anything other than a corporate sponsor of a professional sports entity like Euro club sports teams.

JC may actually improve as an AD as this becomes more reliant on his legal background, though I hope he either defers to an assistant AD in coaching searches. I also hope he utilizes the income to hire an external search firm, or keep one on retainer. There is abig difference between running a big business for which I think he is well suited, and "being in the know" within coaching circles to identify/keep a short list of coaching replacements.


Question: How does an investment firm increase revenue for the school? I get we need more money to get top recruits/transfers, but is the goal to get invited to better paying post season events or to position the school for a new tv deal including possible formation of a Super League? What is the ROI to the school when we can still get Big 12 tv revenue with occasional great years on the field/court at lower NIL payments?

[Lobot]

Really good write up on this with questions from Matt Brown at Extra Points. ($)

This site and newsletter is worth your money if you have $9 a month to spare. Lots of business side stuff and they have a sister publication now called NIL Wire

https://www.extrapointsmb.com/p/my-b...letics-pe-deal