Private Equity Enters College Sports Debate

Athletic departments and sports operators weighing outside capital face a debate over return targets and governance.

Updated on Nov. 6, 2026 in Public Companies

Private Equity Enters College Sports Debate

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Ian Charles, managing partner of Dallas-based Arctos Partners, publicly criticized private equity involvement in college athletics at the Dallas Citizens Council annual meeting on November 5. His remarks come as the Big 12 has agreed to a private equity deal with RedBird Capital earlier in 2026, a shift that affects how college athletic departments in the conference finance and govern their programs.

Why it matters

Private equity is moving into collegiate athletics through conference and department partnerships, changing who holds financial stakes in college sports. Charles's criticism and the presence of Big 12 and SMU leaders at the same forum show the trend is being debated openly among the people deciding whether to pursue such deals.

Investors in these deals target a 15 to 17 percent rate of return, according to the figures cited at the meeting. SMU has had conversations with three to four private equity groups, while the University of Utah became the first Big 12 athletic department to partner with private equity earlier in 2026.

The players

Arctos Partners

Dallas-based investment firm with stakes in the Golden State Warriors, Boston Red Sox, Los Angeles Dodgers, Buffalo Bills, Liverpool F.C., and Aston Martin F1 Team.

RedBird Capital

Private equity firm that agreed to a deal with the Big 12 conference earlier in 2026.

Big 12 Conference

Power conference of college athletics whose media and revenue arrangements shape how member schools earn money.

Ian Charles

Managing partner of Arctos Partners who publicly criticized private equity involvement in collegiate athletics.

Damon Evans

Athletic director at SMU who has discussed private equity conversations with three to four groups.

The details

Private equity firms typically seek returns from assets they can grow and later sell, so when they take stakes in athletic departments or conferences, revenue from media, sponsorship, and licensing becomes the asset that must produce the target return. At the Dallas Citizens Council meeting, Charles, Big 12 outgoing commissioner Brett Yormark, and SMU athletic director Damon Evans discussed the forces restructuring college sports. Those conversations reflect how athletic leaders are weighing outside capital against the commercial demands of their programs.

Earlier in 2026: Big 12 agreed to a deal with RedBird Capital.
Earlier in 2026: University of Utah became the first Big 12 athletic department to team up with private equity.
November 5: Ian Charles criticized private equity involvement at the Dallas Citizens Council annual meeting.

Market Landscape

The Big 12's 2026 deal with RedBird Capital and the University of Utah's partnership mark a new phase in which private equity moves from sponsorship into athletic department finances. Charles's criticism, made at a Dallas forum that also heard from Big 12 and SMU leaders, shows the debate is shaping how other conferences and schools weigh similar deals.

Athletic directors and finance leaders weighing outside capital should model how private equity return targets of 15 to 17 percent would be met through media, sponsorship, and licensing revenue. Operators in sports marketing and sponsorship should watch which schools and conferences follow the Big 12 and Utah deals, since new private equity partners could change the buyers and terms in those markets.

The takeaway

Private equity in college sports is now a live option being negotiated by conferences and athletic departments, so operators should track which peer programs sign similar deals and on what terms. Any decision to pursue such a partnership should be reviewed with qualified counsel and an accountant before commitments are made.