The University of Utah approved a groundbreaking private equity deal Tuesday that promised hundreds of millions of dollars for the school’s athletic department, which like nearly every athletic department in the country is running an annual deficit.

This was a historic vote. The Utes need money. Otro Capital of New York, a firm that seeks investments in sports, sees an opportunity. The company is offering more than $400 million to the school, a source told ESPN, plus Otro’s operational expertise, to generate new revenue streams for the department.

“I think we can go from surviving to thriving,” Utah trustee Bassam Salem said before the vote, echoing the optimism of the moment. He then expressed the shared concern: “Are there risks? Yes. Am I concerned? Yes.”

Everyone should be; not just at Utah but across college athletics, where deals like these are expected to become more common.

The core problem though, which the smart folks in private equity have certainly realized, is this:

College athletics doesn’t have a revenue problem.

It has a spending problem.

Even as revenue goes up and up from richer media deals, expanded playoffs and modernized operations, costs continue to soar because of revenue sharing with athletes, coaching salaries, increased travel and debt on ever-more opulent stadiums and locker rooms.

At some point, spending has to be addressed. Private equity firms, renowned for acquiring investments with an eye toward cutting costs, consolidating and reselling for a profit, are likely to do it with a different mindset than college administrators.

An Otro spokesman declined comment on this deal, which isn’t expected to close until 2026.

Typically, though, it would seem that private equity companies aren’t really interested in college athletics — which lose money at nearly every school — but rather college football and, to a lesser degree, men’s college basketball, both of which turn significant profits at the major level.

Utah athletics, for example, lost $17 million in fiscal 2024 after spending $126.8 million against $109.8 million in revenue, per school documents. That’s a 15.8% deficit.

However, the Utes football program turned a $26.8 million profit. Men’s basketball followed at $2.6 million. The remaining 17 programs lost $21.2 million, per documents.

It’s Business 101: If costs need to be cut, then nonprofitable divisions get the axe, perhaps completely. In this case, that could mean Olympic sports teams.

Not everything at a university should have to make money, of course. Every school has a marching band. Yet that isn’t how private equity traditionally works — this is business, not academia. What’s the cost analysis on the clarinet section?

That’s the crossroads that is coming.

No one will say for certain whether sports will be scaled back or even cut, and perhaps they won’t be, especially in the near term. Business is business though.

Final details of the Utah-Otro deal will be hashed out before closing in 2026. But the basics are this: In exchange for the cash infusion, Otro will get a minority share of the newly created, for-profit entity Utah Brands & Entertainment. The university’s foundation will own the majority.

That entity will handle sponsorships, NIL, ticket sales and other business-side items. The university’s argument is that Otro’s expertise will increase revenue. Utah, meanwhile, will control scheduling, hirings and firings and handling the student-athletes.

Utah was in the red despite, it noted, “ticket sales, number of donors, and total donations … [improving] year-over-year.” The department already collects $6.2 million in fees from students courtesy of a $82.69 per-semester charge, according to documents.

Essentially, something needed to be done.

“There’s equal risk of actually not doing anything,” school president Taylor Randall said at Tuesday’s meeting.

So Utah is getting a cash infusion and some operational expertise in exchange for … ?

That’s the question.

Utah says it will have governing control over Utah Brands & Entertainment. “Decisions regarding sports, coaches, scheduling, operations, student-athlete care and other athletics matters will remain solely with the athletics department,” athletic director Mark Harlan said.

Generally speaking, though, across college athletics, a business approach to an athletic department is going to lead to uncomfortable and previously politically-loaded conversations about cutting expenses.

That’s because no school has consistently managed to generate enough revenue to cover ever-rising costs.

Even mighty and massive Ohio State, which brought in $254.9 million of revenue in fiscal 2024 (or nearly 2.5 times the amount of Utah), according to school documents, ran a $37.7 million deficit while operating 32 athletic programs.

It’s one reason Ohio State supported a $2.4 billion private-capital deal between the Big Ten and UC Investments before the proposal stalled out last month because of opposition from Michigan and USC. Mark Bernstein, chair of Michigan’s Board of Regents aptly noted that until runaway spending was addressed, the deal was simply akin to a “payday loan.”

College athletics has done much of this to itself, mind you.

Costs have been out of control for decades. The facility “arms race” has been financially destructive everywhere. Leagues have expanded, causing spikes in travel for even the smallest of programs. Motivated by winning, almost no one has kept a latch on coaching salaries, buyouts or staff sizes — in football especially, but every program as well.

While there is certainly plenty of fat that can be cut from football or men’s basketball, those are the profitable divisions that generate the money that keeps everything potentially viable. While Title IX compliance remains a factor, the emotional decisions about the value of other teams have been kicked down the road.

It’s how not just Utah, but nearly everyone else, has gotten to the point that these deals look like a life preserver.

Yet private equity is, usually, motivated to turn a profit to recoup (and then some) its initial investment.

How long until they, unmoved by arguments about the ethereal value of, say, having a tennis team, or that swimmers work as hard as football players, don’t push for bottom-line decisions — namely some of these teams need to go?

With the Lane Kiffin era on the horizon, LSU’s athletic department is remaining with Nike for the foreseeable future.

LSU and Nike announced Thursday they extended their partnership that dates back five decades through 2036. What’s more, LSU is entering a “first-of-its-kind partnership” as the initial school to institute Nike’s Blue Ribbon Elite NIL program.

“LSU and Nike are two of the top brands in sport and an ideal duo,” athletic director Verge Ausberry said in the announcement. “We are both continuously looking to innovate and stay ahead of the game, and that’s what we intend to do in the future with this extended partnership. 

“LSU has always been at the forefront of NIL strategy, and as the launchpad for Nike Blue Ribbon Elite, we look forward to working with Nike to offer our student-athletes unrivaled opportunities to capitalize on their brands.”

The following Tigers are among those joining Nike’s roster of NIL athletes:

This comes at a notable time for the LSU athletic department.

The women’s basketball program has been to the Elite Eight in each of the last three seasons, including when it won the national title in 2023. The baseball team won the College World Series in 2023 and 2025, and the gymnastics team won the national championship in 2024.

And, perhaps most notably, the high-profile football program just made a headline coaching change by hiring Kiffin after firing Brian Kelly.

Each of LSU’s three coaches prior to Kelly won a national title in Nick Saban, Les Miles and Ed Orgeron, and the SEC powerhouse is surely hoping Kiffin can reestablish that tradition of winning on the biggest stage after the program failed to live up to expectations in recent years.

Kiffin just led Ole Miss to the College Football Playoff this season and will look to do the same with the Tigers in 2026 and beyond.

If he does, the players will be wearing Nike on that stage with this extended partnership.

The bombshell news that Michigan has fired coach Sherrone Moore for cause took the college football world by storm on Wednesday afternoon. Michigan stated it had ‘credible evidence’ that Moore engaged in an inappropriate relationship with a staff member.

ESPN insider Adam Schefter joined SportsCenter on Wednesday with the latest. He shed more light on the situation.

“I can tell you having spoken to various members of the football program, the coaches were called in and told that Sherrone Moore was being fired,” Shefter reported on the air. “They then were calling in the team to tell them the same news and then a short time ago, Michigan athletics director Warde Manuel released a statement that you read a part of, where essentially it says that following a university investigation, ‘credible evidence’ was found that coach Moore engaged in an inappropriate relationship with a staff member. The conduct constitutes a clear violation of university policy and Michigan maintains zero tolerance for such behavior.”

Because the firing is for cause, it should allow Michigan to get off the hook for any buyout money potentially owed to the coach. While obviously not ideal to have an unexpected coaching change, that will at least soften the blow some for Michigan.

As the team gets ready to play in the Cheez-It Citrus Bowl against Texas, it will do so without Sherrone Moore and with new leadership. That game is scheduled for Dec. 31, so the team is already in preparation mode.

“Biff Poggi has been appointed head football coach in an interim capacity effective immediately, and obviously there will be a lot more to this story that comes to the forefront in the days and weeks to come,” Schefter said. “But what we do know now is that Michigan becomes the latest school to join a long line of them to make a head coaching change in what has been a tumultuous season in college football.”

Several other high-profile programs have already made their hires this offseason. The Michigan job comes open after Auburn, Florida, LSU, Penn State and UCLA have all already been filled, among others.

The thing that will sting is that this appeared to come relatively out of the blue. Schefter provided more context on the timing.

“Michigan now will have to go find a new football head coach to take over for Sherrone Moore,” he said. “Sherrone Moore obviously will move on from the university. It’s been a difficult situation for everybody, people involved in the program are surprised. One staff member texted me that he’s completely shocked by this particular situation, but Sherrone Moore is the latest big-name college football head coach to now be out.”

Coaching turnover has always been part of college football’s rhythm.

Programs chase fresh starts. New faces arrive with promises of new visions. Administrators convince themselves the next hire will be the one to deliver on long-held dreams.

This year, though, the churn has reached a new level.

So far, schools have shelled out a record $185 million in buyouts, per Front Office Sports, as programs rush to beat recruiting deadlines, leverage NIL advantages and stay afloat in the transfer-portal arms race.

Twenty-eight head coaches have been fired or moved this cycle — not an all-time high, but part of a striking pattern. Since NIL arrived in 2021, yearly totals have hovered at unprecedented levels: 28 in 2025, 29 in 2024, 31 in 2023, 24 in 2022 and 28 in 2021.