The House v. NCAA settlement and the coming $20.5 million annual athlete‑compensation requirement have forced universities to rethink their financial models. Private equity sees opportunity — and universities see survival.
The First Wave of College‑Sports PE Deals
The University of Utah’s decision to partner with private equity firm Otro Capital to create a for-profit company to manage much of its athletics revenue is prompting new questions about financial risk, donor incentives and the mission of a public university.
Under the agreement, the new entity, Utah Brands & Entertainment LLC, will operate ticketing, sponsorships, licensing, media production, hospitality and other commercial functions. The university maintains control over teams, scholarships and compliance. The school’s foundation will remain majority owner.
Utah is not the only Big 12 program engaging with private equity. While no formal deals have been completed, Kansas State, Baylor, and Iowa State are actively exploring partnership models with New York–based firms.
In the ACC, Louisville, NC State, Pitt, and Georgia Tech are evaluating how private equity could fit into their long‑term financial strategies. Basketball powers UConn and Gonzaga are also engaged in early‑stage discussions as they assess the evolving marketplace.
While individual universities are moving cautiously, the Power Four conferences are not. The Big Ten is reportedly exploring a multi‑billion‑dollar private investment deal, positioning it as the most ambitious conference in the PE arena. Big 12 Commissioner Brett Yormark has openly discussed plans to integrate private equity across multiple initiatives, and ACC Commissioner Jim Phillips appears receptive to using PE as a tool to narrow the widening financial gap with the SEC and Big Ten but they have not yet taken the plunge.
The SEC has remained publicly quiet, but given the accelerating pace of change, it is unlikely to stay on the sidelines for long.
Elevate CEO Al Guido says universities need partners “who can bring both capital and strategic expertise to the table” as they enter the revenue‑sharing era.
How PE Will Operate in College Sports
Unlike pro sports, universities cannot sell equity. Instead, PE firms are creating:
- Revenue‑participation agreements
- Long‑term financing tied to media rights
- Facility‑development partnerships
- NIL‑collective consolidation models
Quotes From Leaders
iCapital (2025): “As the global sports market heads toward $860 billion, private equity isn’t just investing in teams — it’s reshaping the game.”
Elevate Sports Ventures: “We’re helping schools navigate a new era of athlete compensation and commercial opportunity.” (from reporting on the Collegiate Investment Initiative)
The Firms Targeting College Sports
- Velocity Capital Management
- RedBird Capital
- Weatherford Capital
- Otro Capital
- Sixth Street (via collegiate partnerships)
As we move into 2026, the pressure on athletic departments and conferences to find new, sustainable revenue streams has never been greater. Whether private equity becomes the long‑term solution is still an open question, but it is undeniably the most immediate and scalable option on the table. Universities and conferences are confronting structural financial realities that traditional fundraising, donor fatigue, and stagnant media contracts can no longer solve alone. Private equity brings what college sports now lacks: capital, strategy, and the ability to modernize at speed. For an industry entering the revenue‑sharing era with billion‑dollar obligations, PE may not be a cure‑all — but it is, at this moment, the clearest source of hope for institutions trying to compete, survive, and evolve in a radically reshaped college sports economy.
