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Penn State and UCLA athletic directors have shot down reports linking their schools to private equity funding, despite last week’s House v. NCAA settlement creating new financial pathways in college sports.
Both Pat Kraft (Penn State) and Martin Jarmond (UCLA) told Yahoo Sports’ Ross Dellenger that their partnerships with sports consulting firm Elevate don’t include any private capital investments. They’re pushing back against a Sportico report claiming the Big Ten powerhouses had joined Elevate’s new $500 million college athletics funding program.
“Elevate serves as our partner in ticketing strategy and operations,” Kraft explained. “To clarify, our relationship is strictly limited to these services. We have no affiliation or involvement with any private equity firm or fund.”
Jarmond echoed similar sentiments about UCLA’s arrangement.
“Elevate is a current ticketing partner of UCLA Athletics, and we are exploring the opportunity to expand the partnership, but private equity funding is not involved,” he stated.
The denials come just as college sports enters uncharted financial territory.
On Monday, Elevate unveiled its College Investment Initiative backed by Velocity Capital Management and the Texas Permanent School Fund. The initiative reportedly prioritizes credit deals over equity stakes, focusing on investments that generate long-term revenue while providing consulting services from its financial backers.
Velocity Capital Management — owned by David Abrams and Indonesian billionaire Robert Budi Hartono — launched three years ago and managed $257 million in assets as of December 2024. Meanwhile, the Texas Permanent School Fund controls over $57 billion in assets that benefit Texas grade and high schools.
Private equity discussions aren’t new in college athletics. Florida State previously explored options but never finalized any agreements. The Big 12 flirted with a massive private equity deal last summer — potentially worth $1 billion for a 20% ownership stake — before ultimately walking away.
Why Schools Might Be Tempted
The financial pressure on athletic departments is mounting rapidly. Power-conference schools now face payments of up to $22 million over the next decade following the House v. NCAA settlement. With revenue sharing with athletes now on the horizon, the cost of competing at the highest level is about to skyrocket.
Both Penn State and UCLA have enjoyed recent athletic success. The Nittany Lions reached the College Football Playoff semifinals this past season, while UCLA made a Final Four appearance in women’s basketball as a 1-seed, reached the Men’s College World Series, and captured a national championship in men’s water polo.
Maintaining that competitive edge isn’t cheap.
As college sports’ financial landscape transforms, athletic departments are scrambling to find new revenue streams that can sustain their programs. Private equity represents one potential solution — even if these particular Big Ten schools insist they’re not going that route yet.
