Back in December, the University of Utah revealed it was pursuing a private equity deal with New York-based Otro Capital to help fund the school’s athletics programs and generate additional revenue.
On Friday morning, six months later, it became official, as Utah announced details about the first-of-its-kind partnership between a university athletic department and a private equity firm.
That included introducing the leadership team that will be guiding Crimson Brand Partners, previously known as Utah Brand & Entertainment, the newly developed for-profit company that handles the commercial side of the athletic business.
“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 of Utah president Taylor Randall said in a news release.
“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.”
Briefly, here’s a look at the details of the partnership.
What is Crimson Brand Partners and what will it govern?
- Crimson Brand Partners was designed to help build the Utah Athletics brand and fund all 19 of the school’s athletics programs “over the long term,” per a school release.
- The school detailed that Crimson Brand Partners will manage commercial operations for Utah Athletics — that includes events at athletic venues, branding, licensing and sponsorships, ticketing and digital media.
- Per the university, what Crimson Brand Partners will not be involved with — and will continue to be run by the University of Utah — is coaching, recruiting, scheduling, student-athlete support and private fundraising.
- Utah’s athletic facilities will also continue to be owned by the school.
- Crimson Brand Partners will officially begin operations July 1, the start of the fiscal year.
Who is in charge of Crimson Brand Partners?
- Utah athletic director Mark Harlan will chair the company board.
- Matt Webb, who has spent two decades working in professional sports, was named the first chief executive officer of Crimson Brand Partners. Webb is the one in charge of day-to-day operations of the organization.
- Webb most recently spent eight years as executive director and vice president of corporate partnerships with the New Orleans Saints and New Orleans Pelicans. “What Crimson Brand Partners has the opportunity to do is make and impact off the court and on the field,” Webb told media members.
- Other members of the Crimson Brand Partners leadership team include chief commercial officer Alex Schulte, chief ticketing officer Joel Adams and chief financial officer Garrett Best.
- Initially, Crimson Brand Partners will include approximately 15 current Utah Athletics employees and will be expected to grow to as many as 70 “over time.”
- Recently, the school began a “reduction in force” in the Utah Athletics department to prepare for the finalization of the private equity deal with Otro Capital. On May 29, the school began the process of letting employees know about layoffs — many of those that were laid off could be rehired with the new company.
“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 game days better, and freeing up university dollars for scholarships, research and students.”
Were any financial terms of the Otro Capital deal discussed?
- No financial terms of the deal were discussed in a school press release announcing the partnership or in a Zoom press conference Friday morning to discuss the deal.
- Yahoo Sports previously reported that the deal with Otro Capital is expected to infuse at least $500 million in capital into the Utah athletic department.
- Yahoo Sports’ Ross Dellenger also reported previously that there is an exit strategy with a timeframe of five to seven years that would allow Utah to have the ability to buy out Otro Capital.
- When asked about that Friday, Harlan confirmed there is an exit strategy for the school. He declined going into details at this time.
Why pursuing private equity became a reality for the University of Utah
- Revenue sharing played a major role in a deal like this coming together.
- The June 2025 House vs. NCAA ruling paved the way for universities to share a portion of their revenue with student-athletes — in the 2025-26 athletic season, the first year revenue sharing became possible, schools were allowed to pay out up to $20.5 million of the athletic department’s revenue to students.
- With razor-thin margins, the chase to generate revenue is paramount to staying competitive at the highest level.
Harlan acknowledged the risks of entering into a venture where there is no roadmap or previous examples to learn from, while adding that with the current environment of college athletics, there’s also risk in doing nothing.
“We really wanted to take a look at all those risks. We wanted to make sure that the university was properly covered, and we wanted to make sure that the deal worked for both sides,” Harlan told media members. “... 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.
“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 our risks are covered. But most importantly, our opportunities are right there in front of us.”
Why the University of Utah chose Otro Capital
Both in the press release announcing the deal and in the subsequent Zoom press conference, school officials stressed the long-term strategy of creating Crimson Brand Partners and its importance in securing the future of non-revenue sports.
“Stabilizing athletics funding through the new company is intended to reduce the prospect of long-term debt, remove pressure to cut less-profitable programs, and help secure the future of women’s and Olympic sports at Utah,” the press release read.
Harlan shared why Otro Capital ultimately became Utah’s partner in the private equity business.
“We were intentional about choosing a strategic capital partner in Otro Capital, a firm that brings financial resources and relevant operating experience, which is reflected in their ability to attract a top-tier management team,” Harlan said in a news release.
“We are pleased to be able to bring into this enterprise the exceptional operating experience of Otro Capital’s team, combined with our tremendous Utah Athletics staff to form a joint venture that builds the university brand and brings out its best.”
