University of Utah private equity deal sparks questions and debate. Is it the future of college athletics?

Irwin Kishner, co-chair of Herrick's Sports Law Group and co-chair of Herrick's Corporate Department, was quoted in The Salt Lake Tribune in an article addressing private equity investment in college sports. The article discusses the University of Utah's private equity deal, which is "a partnership that could blaze a lucrative trail that other schools soon follow." According to the University, this first of its kind deal will be the difference between "surviving and thriving," however, the agreement has drawn scrutiny "from lawmakers over tax implications and the university’s non-profit mission, questions about transparency and pushback from faculty members."

In examining whether the university could face challenges as the first into this kind of financial arena, Irwin noted, "[t]he Utah athletic rights are being severed off of the university and being put into a box of a for-profit corporation … So yes, they do need to be concerned.”

Further, other schools and conferences have been weighing the benefits of their own private equity deals. And Utah’s move might push some others into the water.

“These are professional teams that are operating on a, if you will, professional level,” said Irwin. “I certainly anticipate you’ll see a floodgate of these kinds of things happening. I think a lot of them will be utilizing the general structure that is being utilized in Utah.”

Read the full article in The Salt Lake Tribune here. Access may require a subscription.