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.
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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.
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“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.
Details behind Crimson Brand Partners
- 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.
- 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.
- No financial terms of the deal were discussed in a school press release announcing the partnership, or in a Zoom press conference Friday morning that discussed the deal.
“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.”
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This story will be updated.