When the University of Utah announced a game-changing and groundbreaking private equity deal in December last year, it achieved quite a major milestone. It became the first major college athletics program to partner with an outside investment firm. Now, that partnership is paying off in a big way.

The University of Utah is changing how part of its athletic department operates because of its deal with the private investment firm Otro Capital. The university is moving some jobs and departments from the athletic department into a new company called Crimson Brand Partners (CBP), which was previously known as Utah Brand Initiatives.

Before those jobs can be transferred, the university has to officially end the current positions. That is why some employees are being laid off. The athletics department stated that they’re implementing changes to foster the growth of Crimson Brand Partners. However, this does not necessarily mean those workers will permanently lose their jobs.

After the university eliminates the positions, Crimson Brand Partners plans to hire people for similar roles. The affected employees will have the chance to interview for the new jobs. A university spokesperson explained the entire process and how things will work after the employees’ layoffs.

“In preparation for the growth of Crimson Brand Partners (CBP, formerly Utah Brand Initiatives), the University has begun the process of transitioning select units of some University operations to the new company,” the spokesperson said. “The first step of that process requires the discontinuation of the individual positions in those units through a reduction in force (RIF), to be followed by CBP’s hiring process.”

University officials met with the employees who are affected by the restructuring on Friday and informed them that their jobs are being eliminated. However, these employees will remain through June 30, when their positions officially end. For now, the exact number of employees affected by this move is unknown.

The University of Utah made a deal with Otro Capital to create a new for-profit company. When the deal was first announced, the company was called Utah Brands & Entertainment LLC. The company was later renamed Utah Brand Initiatives and is now known as Crimson Brand Partners (CBP).

Through this partnership, Otro Capital could help bring more than $500 million into Utah athletics. University officials believe the deal will help the athletic department handle the major financial changes happening in college sports, especially the growing need to share revenue with athletes and compete in the NIL era.

Crimson Brand Partners will focus on making more money for Utah Athletics. The company will work on areas such as sponsorships, events, media and broadcasting deals, licensing, branding, premium seating, hospitality, and other business opportunities. The goal is to create new sources of revenue and increase existing ones.

With the changing sports market and players’ increasing demand for better NIL deals, teams are trying to find ways to earn more and more. Utah’s move can help them bring in a good amount of money, which they can later use in bringing in their desired players and help in the overall development of the department. Now, just like Utah, their conference also made solid moves by joining hands with private equity firms.

The Big 12’s move towards bringing in more revenue

The Big 12 Conference has reached a deal with Collegiate Athletic Solutions (CAS), an investment group created by RedBird and Weatherford Capital, to bring new funding into the conference. Through the agreement, the Big 12 will immediately receive at least $12.5 million. This deal is part of a growing trend in college sports, where conferences and schools are looking for outside financial support to deal with rising costs, including athlete revenue sharing and NIL expenses.

The Big 12 can access an additional $12.5 million by May 2027. Plus, individual schools in the conference can choose to access up to $30 million in credit if they need extra funding for athletic projects or other expenses.

However, conference officials believe that only a few schools are likely to use this credit option. Unlike Utah’s deal with Otro Capital, this agreement does not give the investors any ownership stake or control over the Big 12. It simply provides access to funding that can be used to help grow revenue. So, it’s pretty clear that in order to survive the growing demand of NIL conferences, teams are making solid moves.