Friday Feature: Private Equity and College Sports
What roles could private equity play in the current landscape of college sports?
College athletics are no longer just a campus tradition. Since the Alston decision, NIL expansion, and the House v. NCAA settlement, the collegiate model has begun to look a lot like a professional sports structure. This new landscape is comprised of salaries, general managers, and now, potential private equity ownership.
The Supreme Court's 2021 Alston ruling cracked the door open for change by stating the NCAA was not above antitrust laws. What followed was a swift, dramatic evolution. Student-athletes were finally allowed to profit off their name, image, and likeness. However, the NCAA's continued ban on "pay-for-play" triggered a workaround: collectives. These donor-driven entities became key facilitators of NIL payments, often blurring the line between legal endorsement deals and compensation for performance.
Then came the House v. NCAA settlement. Approved in June 2025, the agreement included $2.8 billion in back pay and opened the door for a new revenue-sharing model that allows schools to allocate up to $20.5 million annually to student-athletes. This change introduces financial strain across athletic departments, forcing many to reevaluate how they fund sports programs. Some schools have already trimmed athletic department staff, cut programs, or even threatened to cut non-revenue sports.
Enter private equity.
Long known for investing in undervalued assets with high growth potential, private equity firms see college athletics as ripe for investment. Athletic departments have powerful brands, dedicated fan bases, predictable revenue from media deals, and strong demand for performance. What they often lack is liquid capital. With donor fatigue growing and collectives shouldering large NIL obligations, many universities are now open to new financial models.
Private equity offers a solution: upfront capital and operational expertise in exchange for a stake in future revenues. College Athletic Solutions, a fund backed by RedBird Capital and Weatherford Capital, is reportedly prepared to invest up to $2 billion in college athletic programs. While, the firm Elevate recently launched a $500 million initiative specifically designed to infuse private capital into athletic departments.
Discussions are underway with schools and conferences alike, including potential deals with the conferences and programs. Institutions such as Florida State and Boise State are actively exploring a PE partnerships.
While these deals are still emerging, the mechanics are becoming clearer. Besides outright ownership, which would raise significant governance and regulatory hurdles, firms may seek a cut of specific revenue streams or offer loans secured by future earnings. This model mirrors what we’ve seen in European soccer, where investment firms buy into clubs without acquiring majority ownership.
Still, the implications are significant. College programs are increasingly run like professional franchises, with general managers overseeing rosters, NIL budgets, and even athlete contracts. As more schools consider multi-million dollar investments in roster management and facilities, the pressure to remain competitive will drive interest in alternative funding sources.
Private equity involvement is not without skepticism. Critics argue that profit-driven investors may shift priorities away from student welfare and academic missions. Others point to concerns over governance, transparency, and the potential for private investors to push out traditional stakeholders like alumni and boosters.
But for schools committed to staying in the top tier of competition, the status quo may no longer be sustainable. With massive legal obligations, ballooning NIL payments, and new parity requirements, schools will need to find partners who bring more than just financial capital. Private equity’s arrival could signal a lasting shift in how college athletics are financed and governed.
In a post-House world, private equity may become not just a partner, but a key player in shaping the future of college sports.