Utah Athletics Director Mark Harlan addressed skepticism regarding a new investment deal with Otro Capital during a Tuesday morning appearance on KSL Sports Zone, arguing the partnership is focused on business operations rather than just upfront capital.
Preparing for rising athletic costs
Speaking on DJ & PK on 97.5 The KSL Sports Zone, Harlan explained that the university began studying financial options well before revenue sharing became official to prepare for rising costs in athlete compensation, NIL, and facility needs.
Financial challenges despite record fundraising
According to KSL Sports, Harlan noted that despite record fundraising and a sold-out football stadium, the athletic department was not reaching its desired financial targets. He stated, "The one thing we knew was that things are going to get a lot more expensive with payroll coming."
Launching Crimson Brand Partners entity
The deal has led to the launch of Crimson Brand Partners, a new entity expected to eventually employ between 60 and 70 people. The company will manage revenue operators, brand enhancers, and staff responsible for revenue generation outside of philanthropy.
Integrating revenue and university assets
Harlan said the goal is to integrate athletics revenue streams with broader university assets such as concessions, licensing, and corporate partnerships. He noted that while upfront capital is part of the agreement, the focus remains on creating more polished entertainment products and better packages for corporate partners.
Choosing operators over simple loans
Harlan pushed back against the idea that the university sought private equity simply as a loan, noting that the school could secure cheaper loans elsewhere. He emphasized that Utah chose Otro Capital because they function as operators with experience in modern sports business.
Crimson Brand Partners is also expected to assist in funding Utah's revenue-sharing obligations.
