University of Utah under fire after risky private equity deal turns to mass layoffs

BYU is winning the NIL war in the Beehive State, and the recent circus surrounding their Big 12 neighbors in Salt Lake City is only confirming just how important it is to find stability and security in an age where college athletics will likely be unrecognizable within the next decade.

In December of 2025, the University of Utah took a risk by partnering with a private equity firm, Otro Capital, for $500 million and a 33% stake, and it's blowing up in their faces.

Per the original announcement, it was clear that while the private equity approach was unorthodox, the university felt confident that Otro would be nothing more than a strategic partner and revenue sharer. Per an article from nilrevolution.com:

"On December 9, 2025, the University of Utah, in what appears to be the first such deal of its kind, announced plans to partner with Otro Capital in a private equity arrangement. The deal is projected to generate approximately $500 million in capital for the university’s athletic programs. Otro Capital is a New York-based firm that invests in sports teams and leagues."

"Under NCAA rules, the university must retain decision-making authority over Utah Brands & Entertainment LLC, the entity created to participate in the partnership with Otro Capital. Utah’s president, Taylor Randall, and athletic director, Mark Harlan, will continue to make major decisions impacting the athletic department at Utah. Meanwhile, Otro Capital will receive a percentage of Utah Brands & Entertainment’s revenues while serving as a strategic partner for the university. The university also retains the right to purchase Otro Capital’s ownership stake in Utah Brands & Entertainment at any time. Certain athletic department responsibilities will be managed by the newly formed company."

But with the recent announcement that the U's athletic department would be undergoing significant layoffs, the message has been sent loud and clear: the New York private equity firm is calling the shots in SLC.

USA Today Sports had plenty to say about the subject, in a scathing article that feigned surprise at the news. Despite the $500 million boost to the athletic department's funds -- a much-needed paycheck for a department that needed the cash -- the university is still firing its employees. Not a good look, nor one that suggests Utah has been thriving since partnering with private equity.

"The only way this thing works is if -- and it’s a big if -- Utah makes a boatload of cash in a college sports environment currently drowning in the deep end of inflation. A college landscape, mind you, that changes by the month and is wildly unstable."

13 other Big 12 programs, including BYU, have all said no to different private equity offerings -- which is not as easy as it may appear in the ever-changing and infinitely competitive landscape of college athletics.

BYU is winning the NIL war, and this has been clear with the drastic rise in their football and basketball programs since joining the Big 12 Conference.

Utah, in an effort to keep up, hired the piper of private equity, and they're starting to pay for that decision, one way or another.

For the good of the conference, and the good of the Holy War rivalry, we can only hope that this round of layoffs is truly just a minor setback, and not a symptom of a bigger fundamental issue.

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