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Wetzel: Beware, college sports, private equity has arrived

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Wetzel: Beware, college sports, private equity has arrived


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?



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NHL outdoor game sees its 1st goalie fight between Vasilevskiy, Swayman

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NHL outdoor game sees its 1st goalie fight between Vasilevskiy, Swayman


TAMPA, Fla. — The Tampa Bay Lightning credited the first goalie fight in an NHL outdoor game for helping to spark their historic Stadium Series comeback win over the Boston Bruins on Sunday.

With 8:59 left in the second period and the Bruins leading 5-2, Lightning forward Brandon Hagel tried to poke the puck from under Bruins goalie Jeremy Swayman after a save. Swayman then jumped on top of Hagel next to his crease, leading to a melee between the teams while the Lightning were on a power play. Tampa Bay goalie Andrei Vasilevskiy skated from his crease to the opposite blue line during the chaos.

“I just saw Sway was swinging the blocker on [Hagel] a bit, so it was just a reflex to go to the red line and challenge him. He accepted,” Vasilevskiy said.

Swayman spotted the Tampa Bay goalie, dropped his stick and skated out to meet Vasilevskiy as the two engaged near center ice. Swayman took off his gloves and mask and signaled to Vasilevskiy to remember to remove his mask before the fists flew.

“I don’t want to hit his helmet, so I’m glad we didn’t do that,” Swayman said.

The Lightning goalie nicknamed “The Big Cat” grabbed Swayman’s collar and started throwing left hands. The Boston goalie wasn’t able to get much offense in before Vasilevskiy wrestled him to the ice.

Did Swayman know that Vasilevskiy was a lefty before their fight?

“No,” the Bruins goalie said curtly, with a laugh. “Glad we both had our first gig against each other. Really worthy opponent.”

Vasilevskiy gave him a tap on the back and then tapped the back of Swayman’s head in appreciation of the moment, grinning widely as the fans roared inside Raymond James Stadium.

“When we both fell, we just kind of said to each other nice words. It was super nice. It’s one of the biggest moments for me, because I never fought in the NHL,” Vasilevskiy said. “Big thanks to him. He was great in the net all game and great in the fight as well.”

Swayman was also appreciative.

“He wanted to win, which is good. So did I. So that’s game respecting game,” he said. “I’m fighting the biggest, toughest goalie in the league. It wouldn’t be my first choice, but glad we got the first one out of the way. Probably retire after that.”

The crowd of nearly 65,000 fans stood and cheered during the confrontation, and then again when the referee announced the goalies had both received five-minute majors for fighting. Players on both benches were on their feet, too, slapping their sticks against the boards in appreciation and respect for their netminders.

“He was throwing lefts. I was like, ‘Oh my God.’ I didn’t want to be the other guy,” Lightning winger Nikita Kucherov said. “I was so happy. I was so fired up. I think the bench felt it. Everyone in the building felt it. Ever since that fight, the game was turned. Vasy had to do it, I guess. He had to wake us up.”

The Lightning would score twice on 5-on-3 power plays over the next 5:12, cutting the Bruins’ lead to 5-4 heading into the third period. Kucherov tied the score in the third period, and the Lightning eventually won 6-5 in a shootout.

Tampa Bay’s rally from a four-goal deficit to win marked the largest comeback victory in franchise history and the largest in an NHL outdoor game.

Lightning coach Jon Cooper said he could feel the momentum starting to swing before the fight, but the goalie throwdown was an emotional high the Lightning needed at that moment.

“I was like, ‘Thank goodness something positive was going to happen to our game,'” he said. “I give Boston a lot of credit. They took it to us and we weren’t prepared for it. Vasy was pissed.”

Hagel said he felt the fight was “a big turning point in the game.”

So did Kucherov, who was also convinced that his goalie would win the fight.

“I knew he was going to beat the wheels off of Swayman right away,” Kucherov said. “We call him ‘White Tyson’ now.”



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LeBron James earns record-extending 22nd NBA All-Star Game nod

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LeBron James earns record-extending 22nd NBA All-Star Game nod


NEW YORK — For a 22nd straight year, LeBron James is an All-Star.

The NBA announced its reserves for the Feb. 15 midseason showcase Sunday night on NBC before James and his Los Angeles Lakers faced the New York Knicks at Madison Square Garden. Voting was conducted by the league’s coaches over the past week.

James, 41, was the last player announced, as the league’s oldest player extended his record for both overall and consecutive selections by another season.

“Super humbling,” James said Sunday night, after the Lakers lost to the Knicks 112-100. “The coaches voted, right, so mad respect to the coaches and them seeing the way I’m still playing at this latter stage of my career.

“And to be able to be an All-Star means a lot to my family, people that have been following my career, my LeBron faithful. They’ve been following my journey and it’s always rewarding just from a humbling standpoint to be able to be rewarded for what you put your work into.”

James did not play in last season’s All-Star event because of injury.

“You think about a star player, their prime is their All-NBA, All-Star years,” Lakers coach JJ Redick said. “And you know, he’s basically had a 20-plus-year prime. It’s kind of unheard of. It is unheard of, uncharted, whatever you want to call it. I mean, it’s incredible. It’s a testament to the work that he puts in.”

James was joined on the court Sunday by three other All-Stars: starters Luka Doncic and Jalen Brunson, and fellow reserve selection Karl-Anthony Towns.

“Of course he deserves it,” teammate Doncic said of James. “He’s playing at a top level still at that age. It’s incredible to share the floor with him.”

The reserves named with James were led by Houston Rockets forward Kevin Durant, whose 16th All-Star selection is fourth most of all time — breaking a tie with Hall of Famers Tim Duncan and Kevin Garnett and putting him behind only Kobe Bryant (18), Kareem Abdul-Jabbar (19) and James.

Joining James and Durant as Western Conference reserve selections included a trio of first-time participants — Denver Nuggets guard Jamal Murray, Oklahoma City Thunder forward Chet Holmgren and Portland Trail Blazers forward Deni Avdija — plus Minnesota Timberwolves guard Anthony Edwards (fourth) and Phoenix Suns guard Devin Booker (fifth).

“Multiple 50-point games, multiple 50-point games in the playoffs, let’s see, triple-double in the finals, NBA champion, most wins in the West over the last 10 years, he’s the point guard of that team … in my mind, all those things make sense, except for the one that was missing,” Nuggets coach David Adelman said of Murray.

In the Eastern Conference, Towns — making his sixth All-Star team — was joined by Cleveland Cavaliers guard Donovan Mitchell (seventh), Indiana Pacers forward Pascal Siakam (fourth), Toronto Raptors forward Scottie Barnes (second) and a trio of first-time picks: Detroit Pistons center Jalen Duren, Miami Heat guard Norman Powell and Atlanta Hawks forward Jalen Johnson.

“I believe that he deserves it, and I think probably one of the best compliments you can give him is the fact that he starred in all of his roles that he’s had in his career, and he just continues to get better,” Heat coach Erik Spoelstra said of Powell. “He’s having his best years now after the age of 30.”

Under the NBA’s latest format change for the event — U.S. vs. the World — the 24 All-Star participants will be divided into three eight-player rosters — two featuring Americans, with the third made up of international players. They will each play two 12-minute games, with the two teams with the best record — or the two with the best point differential if they all go 1-1 — facing each other in the championship game.

The All-Star Game will take place at the LA Clippers‘ arena (Intuit Dome) in Inglewood, California. The Clippers were notably absent from Sunday’s announcement; despite going 16-4 over their past 20 games to partially erase a brutal start to the season, the team didn’t have any of its players selected for this year’s event.

Either Clippers star Kawhi Leonard — who since Dec. 20 has led the league in scoring and steals — or Rockets center Alperen Sengun is probably the best candidate to replace Milwaukee‘s Giannis Antetokounmpo, who will sit out the game because of a calf injury. NBA commissioner Adam Silver will pick a replacement for Antetokounmpo, plus any additional players should the need arise.

Other players chosen last month as starters were: Boston‘s Jaylen Brown, Detroit’s Cade Cunningham, Philadelphia‘s Tyrese Maxey, Golden State‘s Stephen Curry, Oklahoma City’s Shai Gilgeous-Alexander, Denver’s Nikola Jokic and San Antonio‘s Victor Wembanyama.

Detroit’s J.B. Bickerstaff will coach one of the All-Star teams. Either San Antonio’s Mitch Johnson or Adelman will coach another — that will be decided by results of games Sunday — and the NBA has not announced how the coach of the third team will be decided.

Bickerstaff earned his nod because the Pistons lead the Eastern Conference. Johnson or Adelman will go by having the best record in the Western Conference among eligible coaches; Oklahoma City’s Mark Daigneault coaches the team with the West’s best record, but he cannot coach the All-Star Game this year because he coached at the event last season.

The Associated Press contributed to this report.



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2026 NBA All-Star: Biggest surprises and snubs as full rosters revealed

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2026 NBA All-Star: Biggest surprises and snubs as full rosters revealed


As the calendar turns to February, the 2026 NBA All-Star Game is just two weeks away. The starters were announced on Jan. 19 and include Luka Doncic, Stephen Curry, Nikola Jokic, Victor Wembanyama and reigning MVP Shai Gilgeous-Alexander in the West. Jalen Brunson, Cade Cunningham, Jaylen Brown, Giannis Antetokounmpo and Tyrese Maxey were named the starters in the East.

The reserves were announced on Sunday, including Los Angeles Lakers star LeBron James and Kevin Durant in the West, as well as Donovan Mitchell and Karl-Anthony Towns in the East.

ESPN NBA Insiders Zach Kram and Kevin Pelton break down the full East and West rosters, including biggest surprises and snubs, and make their bold predictions.

Which player were you most surprised to see on the roster?

Pelton: LeBron James is the clear choice, but seeing Karl-Anthony Towns pop up was surprising given the pessimism over how he’s played this season on top of the Knicks’ recent slump. I think teammate Mikal Bridges has been New York’s second-best player after starter Jalen Brunson. Given Towns’ track record, the choice is certainly reasonable yet surprising nonetheless.

Kram: LeBron. It sounds silly to be surprised that a player who had made the last 21 All-Star games would make it 22 in a row. But given that James missed the first month and that his counting stats are down in his age-41 season, as well as the fierce competition in the Western Conference player pool, it was a surprise that his was the last name unveiled during the All-Star roster announcement.


Which player were you most surprised to see left off?

Pelton: Kawhi Leonard. Unless this is a secret part of the punishment from the NBA’s investigation into Leonard’s endorsement deal with Aspiration, I don’t get it. Leonard has been a top-10 player this season, and following a dreadful start, the LA Clippers have been one of the league’s hottest teams since Christmas. Anthony Edwards was the only West reserve I would have picked over Leonard. If I was taking a multi-time Finals MVP playing in L.A., Leonard was an easy choice over James.

Kram: Alperen Sengun was a first-time All-Star last season, has improved as a defender and has better counting stats across the board this year while helping lead the Houston Rockets to the second-best point differential in the West. New Rocket Kevin Durant was a shoo-in, but I think Sengun should have given Houston a second All-Star representative, even if that meant Devin Booker missed out and the surprising Phoenix Suns didn’t get a single player on the team.


Are we getting close to enough international All-Stars to do a normal USA/World 12 vs. 12 game?

Pelton: We might be closer to even in terms of internationals than East vs. West. Some of the answer depends on how creative the NBA is willing to get with its definition of international. Donovan Mitchell made the case recently to Andscape’s Marc J. Spears that he’d like to represent Panama, where his grandmother was born. If the NBA pushed every possible case like that or Kyrie Irving (born in Australia, though he grew up in the U.S.), they could get to 12 without diluting the meaning of being an All-Star.

Kram: There are almost enough worthy international players to round out a 12-person roster; if that were the framework this season, the eight actual international All-Stars would likely be joined by Sengun, Lauri Markkanen, Franz Wagner (despite a lack of playing time) and Joel Embiid. (Embiid was born in Cameroon but plays for Team USA internationally; the NBA could also choose to slot Towns, who was born in New Jersey but plays for the Dominican Republic, as an international representative.) Josh Giddey, OG Anunoby and Dillon Brooks have outside cases as well.

However, those players largely don’t have better All-Star cases than the ninth-through-12th-best Americans, so I wouldn’t advocate such a consequential change just yet. Let’s see how the format works with three teams (two American, one international) this year before deciding if the NBA should change the All-Star format once again.


Give us one bold prediction for the All-Star Game/mini-tournament.

Pelton: The NBA enjoys a short-term benefit from changing the format. Drafting teams and introducing a target score (aka the “Elam ending”) resulted in more competitive games initially before devolving into the defense-free play we’ve seen since. I could see the international team in particular taking things seriously and forcing their American opponents to up their game. However, I don’t see this or anything else “fixing” the All-Star Game long-term.

Kram: Victor Wembanyama takes MVP honors. Big men rarely win this award at the All-Star game — it’s gone to a guard or wing in 13 of the last 15 years, with Anthony Davis and Giannis Antetokounmpo as the lone exceptions — but Wembanyama is so competitive that he’ll gain an advantage just by taking the event seriously. In his first All-Star game last year, he led his team in scoring (11 points in seven minutes), and he and Chris Paul were disqualified for trying to exploit a loophole in the skills challenge.



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