Key facts
- Private equity investment in sports is expanding beyond team ownership to technology, data, and infrastructure.
- The University of Utah is spinning off a not-for-profit entity from its athletic department with private equity support.
- Otro Capital will take a minority stake in the University of Utah's new entity, aiming to enhance commercial activities and funding.
- The University of Utah deal is reportedly valued at up to USD 500m.
- The NFL secured an 11-year media rights deal worth approximately USD 110bn in 2021.
- UEFA Champions League media rights in the UK and Germany were reportedly secured for over EUR 10bn (USD 11.7bn).
Private equity firms are increasingly looking beyond traditional team ownership to invest in the technology, data, and infrastructure underpinning the sports industry. This shift is driven by the under-optimization of commercial rights in sports compared to professional leagues and the resilient demand for live sports content.
The University of Utah has approved a significant deal to spin off a not-for-profit entity from its athletic department, with New York-based sports investor Otro Capital taking a minority stake. This partnership aims to consolidate revenue streams from sponsorship, ticketing, merchandising, and licensing, generating substantial funding. The deal, reportedly valued at up to USD 500 million, is being closely watched as a potential model for private equity investment in college sports.
Industry experts believe this landmark deal could pave the way for more such investments in college athletics, which is entering a "professional era." Similar structures are reportedly being explored by other conferences and investors, such as a potential tie-up between the Big 12 Conference and private equity firms RedBird Capital and Weatherford Capital.
Major professional sports leagues in the US have already opened their doors to institutional capital. Major League Baseball did so in 2019, followed by the National Basketball Association in 2021, and the National Football League in 2024. This has led to minority stake acquisitions in franchises by firms like Arctos Partners, Ares Management, and Sixth Street.
Investors are focusing on monetizing content, with live sports remaining a premier media asset due to its enduring customer loyalty and resilience against cord-cutting trends. Recent media rights deals, such as the UEFA Champions League securing over EUR 10 billion (USD 11.7 billion) and the NFL's 11-year, USD 110 billion agreement, underscore the value of sports media rights.