The University of Utah announced a new athletics funding model designed to create long-term sustainability for its athletic programs. On Dec. 9, trustees authorized the University Foundation to create Utah Brand Initiatives LLC, a for-profit company that will manage the business side of university brand building and commercialization in partnership with Otro Capital.
The partnership, which is expected to be finalized early in 2026, seeks to raise hundreds of millions of dollars to address a widening gap in athletics operating expenses. This move comes as the university faces financial pressures from the NCAA House settlement, conference realignment, and revenue-sharing requirements. The university's share of the settlement is $1 million annually for 10 years, while regular revenue-sharing payments for this year total $20.5 million, with an expected 4% annual increase over the next decade.
Utah Brand Initiatives LLC will handle commercial operations, including ticketing, sponsorships, branding, licensing, scheduling, and the management of stadiums and arenas. Athletics Director Mark Harlan will chair the board of the new company, which the foundation will maintain majority ownership of. While management of coaches, recruitment, and student-athlete support remains with University Athletics, approximately 50 university employees may transfer to the new company, which is expected to grow to about 70 employees.
University leaders stated that the status quo was not an option given the financial headwinds facing higher education. President Taylor Randall noted that the solution aims to preserve the university's elite athletic tradition while protecting its core education, research, and healthcare missions. Chief Financial Officer Tony Wagner said the university is working to ensure the joint venture follows established auditing practices and protects the institution's non-profit status by walling off public funding sources from the new company.
The new model follows similar explorations of private financing by other institutions, such as the University of Kentucky and Clemson. Unlike some universities considering cutting less profitable programs, the University of Utah aims to use this model to shore up women's and Olympic sports and stabilize funding for all athletics programs over the next five to seven years.
