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Utah College Athletics Considers $60M Private-Equity Deal to Fund State-of-the-Art Facilities

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  Published in Sports and Competition on Tuesday, December 9th 2025 at 12:36 GMT by CBSSports.com

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Utah College Athletics Enters the Private‑Equity Era: What It Means for Football, Basketball, and the Future of Collegiate Sport

The University of Utah has long been known for its competitive Division I programs—particularly its football squad, which has produced top NFL talent, and its men’s basketball team, a perennial conference powerhouse. But a new development on the horizon could change the way those teams are funded, managed, and marketed. In a headline‑making announcement that appeared on CBS Sports, Utah College Athletics revealed that it is seriously considering a partnership with a private‑equity firm to inject fresh capital into its sports portfolio.

The deal, as described in the article, would see a private‑equity investment company provide a multimillion‑dollar infusion in exchange for a minority equity stake in the athletics department. The money would be earmarked for a number of high‑profile projects: a state‑of‑the‑art football training complex, a renovation of the on‑campus basketball arena, and an aggressive push to expand the university’s media presence. In exchange, the private‑equity partner would gain access to revenue streams that have long been a part of collegiate sports—ticket sales, merchandising, and, increasingly, media rights and sponsorship deals.

A Trend That Has Begun to Reshape College Sports

The article situates Utah’s proposal within a broader trend that has been gaining traction over the past decade. Private‑equity firms have been eyeing college athletics as an attractive, high‑growth investment class, citing the exponential rise in television rights fees and the increasing popularity of streaming platforms. CBS’s piece references a 2023 report by the Sports Business Journal, which noted that private‑equity involvement has increased by nearly 30 % in the last five years, with firms looking to diversify into sports and entertainment as a hedge against more traditional asset classes.

An important link in the article directs readers to a separate CBS Sports story on the University of Texas’s recent partnership with a venture‑capital backed sports tech firm. That story highlights a similar strategy: using outside capital to fund the construction of a new “multi‑sport” complex that could double the university’s recruiting footprint. The Utah deal echoes that model, but with a focus on “pure equity” rather than a joint‑venture or sponsor‑ship arrangement.

The Deal on Paper

According to the CBS article, the proposed investment is projected to be in the range of $60 million over a ten‑year horizon, with a 25 % equity stake that would be held for a maximum of 15 years. The private‑equity firm—whose name was not disclosed in the article to preserve confidentiality—has reportedly completed a similar transaction with the University of Wisconsin‑Madison two years ago, providing capital that was used to expand the football program’s training facilities and to launch a revenue‑generating “athlete‑brand” platform. The deal’s terms are still under negotiation, but the University’s athletic director, Mike Rinehart, is quoted as saying, “We’re excited about the possibility of leveraging external expertise and capital to elevate our programs without compromising the integrity of the student‑athlete experience.”

Why It Matters

The article emphasizes that Utah’s current athletic budget is already strained. In the 2023 fiscal year, the athletics department’s operating expenses totaled $150 million, but revenue streams—primarily ticket sales, merchandise, and conference distribution—averaged only $120 million. The shortfall has been a recurring topic in board meetings and a major factor in Utah’s pursuit of external financing.

“Without a private‑equity partner, we could be limited to incremental revenue from ticketing and apparel,” Rinehart says. “But a $60 million infusion could unlock opportunities that would otherwise be out of reach—like building a high‑tech training center that would attract top recruits and enhance the fan experience.”

For football, the article highlights plans to upgrade the existing training complex at Jordan Hall, adding a new state‑of‑the‑art weight room and a sports‑science lab. Meanwhile, for basketball, the proposed renovation would expand the seating capacity of the Jon M. Huntsman Center by 5,000 seats and incorporate a new premium “Athletes’ Lounge” for donors and corporate partners.

Potential Benefits

1. Enhanced Recruiting – With modern facilities, Utah could compete with powerhouses like Alabama and Kansas for top high‑school talent.
2. Revenue Growth – A new arena and training complex could increase ticket sales, concession revenue, and create additional sponsorship opportunities.
3. Media and Digital Expansion – The private‑equity partner’s expertise in digital media could help Utah launch a new streaming platform and broaden its national footprint.

The article notes that the private‑equity firm’s track record suggests a strong likelihood of success. In its previous deal with Wisconsin, the firm reportedly achieved a 15 % year‑over‑year increase in media rights revenue and a 20 % bump in overall athletic department profitability.

Concerns and Criticisms

Not all voices in the Utah community are excited. Critics argue that private‑equity involvement risks prioritizing profit over the student‑athlete experience. A link in the CBS article leads to an opinion piece by a former NCAA compliance officer who cautioned that “private equity’s appetite for rapid ROI can clash with NCAA rules on athlete compensation and academic integrity.”

There is also the question of ownership and control. The proposed 25 % equity stake would give the private‑equity firm a seat on the athletics board, raising concerns about governance. “We must safeguard our mission,” Rinehart said, “but we also need to keep the doors open to innovative partnerships.”

Another potential risk is the “donor fatigue” that could arise if fans feel that a corporate partner is taking too much credit for the programs they love. “Fans want to see their teams, not the logos of investment firms,” one Utah alumnus tweeted, and the CBS article references a similar sentiment that surfaced during the 2022 Big Ten football media rights negotiations.

The Broader Context: NCAA Rules and Private‑Equity Involvement

The article also touches on how the NCAA’s evolving regulations create a more permissive environment for such deals. In 2023, the NCAA revised its guidelines on “revenue‑generating partnerships,” allowing institutions to accept equity‑based investments as long as they remain compliant with the “pay‑for‑play” and Title IX rules. An embedded link to the NCAA’s policy documents shows that while there is still a moratorium on direct payments to athletes for recruitment, the new rules clarify that private equity can invest in “supporting infrastructure” as long as it does not directly influence athlete compensation.

Looking Ahead

The University of Utah’s exploration of a private‑equity partnership is still in the early stages. No formal contract has been signed, and the deal is subject to approval by the university’s board of trustees, the NCAA, and potentially the NCAA’s Office of the Executive Committee. If the partnership goes forward, it would mark one of the first high‑profile private‑equity deals in a traditionally conservative sector of college athletics.

In its conclusion, the CBS article emphasizes that “Utah’s move could signal a watershed moment for college sports—where universities seek to blend the passion of athletics with the capital intensity of modern business.” The university’s next steps will be watched closely by competitors, investors, and the wider NCAA community, as they try to balance tradition with the need for growth in an era where sports revenue streams are reshaping the entire collegiate landscape.