This week, the University of Utah became the first college athletic program to accept money from private equity.

While we cannot say for sure what the longterm impact will be, one can surmise that the reported 500 million dollar investment will provide working capital for the school’s NIL efforts.

I’m no business expert, but I think the PE deal will be a net neutral for the university in the long run. Athletes will get more money, coaches and support staff will get more money, but leashes will be much shorter.

When you’ve got legitimate stakeholders to keep happy, one can imagine how quickly a coach might lose their job, or a star quarterback get benched for underperforming their “market” value deal.

I think that ticket prices will rise, concessions will go up, and the actual fans of the University of Utah will see more negative effects than anyone else.

The Facts

Here’s what we know about the ground-breaking private equity deal.

• Partnering with Otro Capital
• Formed Utah Brands & Entertainment LLC
• Will generate $500 million or more in captital
• Formed in part, because paying athletes was costing the university too much money

What’s next? Or more importantly, who is next? With the University of Utah opening the PE floodgates, it’s only a matter of time before someone else dives headfirst into the murky waters of private equity as well.