SALT LAKE CITY — The University of Utah entered into a $500 million private equity deal with Otro Capital, resulting in the formation of a new company called Crimson Brand Partners (CBP). Following the creation of CBP, the university began laying off athletic department employees as part of a restructuring of its commercial operations.
Crimson Brand Partners was established to manage select commercial operations of the University of Utah, including ticketing, licensing, name, image, and likeness (NIL) sales, and sponsorships. The university retains an estimated 66% ownership stake in the new entity, while Otro Capital holds the remaining 33%. An athletic department spokesperson stated: “In preparation for the growth of Crimson Brand Partners, the university has begun the process of transitioning select units of some university operations to the new company. 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 of Utah athletic director Mark Harlan described the affected staff as “impacted employees” undergoing an “unsettling process” during their “transition.” Harlan’s comments were included in an email sent to athletic department employees and obtained by the Salt Lake Tribune. The number of employees expected to be fired and potentially rehired by Crimson Brand Partners is currently unknown, according to the Salt Lake Tribune. The restructuring changes how the university manages its athletic commercial assets, consolidating them under a jointly owned private entity rather than retaining them within traditional university operations.