The University of Utah has announced a new approach to college athletics sustainability by creating a for-profit company, Utah Brand Initiatives LLC. Authorized by trustees on Dec. 9, the new entity will manage the business side of university brand building and commercialization in partnership with Otro Capital over the next five to seven years.
Goals for new funding model
The deal is expected to be finalized early in 2026 and aims to raise potentially hundreds of millions of dollars to address a widening gap in operating expenses for Utah Athletics. The model seeks to protect the university's core missions in education, research, and healthcare while addressing financial pressures facing college athletics.
Financial challenges facing university athletics
University leaders noted that maintaining the status quo was not an option due to significant financial headwinds in higher education. These challenges include conference realignment, disparities in media revenue, unlimited student-athlete transfers, and the NCAA's House settlement. The University of Utah's share of the settlement is $1 million annually for 10 years, alongside regular revenue-sharing payments totaling $20.5 million this year.
Division of operational responsibilities
Utah Brand Initiatives LLC will handle commercial operations, including branding, licensing, sponsorships, ticketing, and scheduling, as well as managing stadiums and arenas. Conversely, University Athletics will retain responsibility for managing coaches, recruitment, supporting student-athletes, and private fundraising. The new company is expected to grow to approximately 70 employees, with about 50 current university employees having the opportunity to transfer.
Leadership vision and strategic partnership
University President Taylor Randall stated that while the university must preserve its elite athletic tradition, it must also protect its core identity as a place for discovery and community service. Athletics Director Mark Harlan noted that the partnership with Otro Capital brings deep expertise from professional sports organizations, including the Cleveland Browns, Dallas Cowboys, and San Diego Padres.
Protecting non-profit status and funding
To protect the institution's non-profit status, university financial managers and attorneys are working to wall off public funding sources, such as tuition and tax dollars, from the new company. The University Foundation will retain majority ownership in Utah Brand Initiatives LLC and hold a majority of board seats, with Mark Harlan serving as board chair.
Financial oversight and finalization timeline
Chief Financial Officer Tony Wagner said the university will ensure the joint venture follows established business and auditing practices, noting that neither the university nor the state will have any financial obligation of support. The partnership is expected to be finalized in early 2026.
