Pennsylvania State University and University of California, Los Angeles have both denied any arrangements with Elevate's newly established college sports fund.
In a surprising twist, Penn State and UCLA have shut down rumors about partnering with Elevate in their $500 million College Investment Initiative. Although Elevate announced that these two schools were part of their new college sports fund, both institutions have clarified their positions.
On Monday, Elevate introduced its college sports fund, backed by private equity firm Velocity Capital Management and the Texas Permanent School Fund [2]. Initially, Elevate claimed that two schools, later reported to be Penn State and UCLA, had already signed on with the fund [1]. However, a UCLA spokesperson stated that while the school is currently partnered with Elevate for ticketing services, it has not engaged with the new college sports fund, declining to share further details about potential expansions [1].
Likewise, Penn State athletic director Pat Kraft released a statement confirming that their relationship with Elevate is strictly limited to ticketing services and operations, and they have no affiliation with any private equity firm or fund [1]. Despite this, Elevate contends that it has "longstanding relationships" with both UCLA and Penn State [1].
Sportico reported that both universities rank among the top 25 in athletic spending among FBS public universities [3]. UCLA's athletics department has faced financial distress for years, listing a nearly $52 million shortfall in fiscal year 2024-even after receiving a $30 million campus subsidy [1]. Meanwhile, Penn State is undergoing a financial recalibration, introducing new fees to establish the "Legacy Fund" [1].
The NCAA settlement, confirmed last week, has sparked discussions on revenue-sharing, with Penn State announcing its intention to spend the maximum athlete revenue-sharing allowable [1]. As the college sports economy shifts, there has been ongoing exploration of private capital integration into athletic operations [3]. Florida State University was one of the first institutions to actively pursue private investment, albeit unsuccessfully so far [3].
The Big Ten, previously lukewarm on private capital, has taken a more proactive approach this year by retaining investment bank Evercore to solicit preliminary private equity pitches [3]. However, the Big 12, an enthusiastic supporter of private capital, has yet to finalize any deals after a year-long evaluation process [3]. Some universities have been hesitant to engage with private equity firms due to their high-risk expectations for immediate returns [3].
[1] https://www.sportico.com/pro/newsmodel/college-football
[2] https://www.elevatespostsports.com/press
[3] https://www.sportico.com/pro/newsmodel/college-athletes
Elevate claims to have "longstanding relationships" with Penn State and UCLA, beyond their arrangements for ticketing services, but both universities have clarified that they are not invested in Elevate's new college sports fund, which is backed by Velocity Capital Management and the Texas Permanent School Fund. Despite this, the college sports economy is shifting, with ongoing exploration of private capital integration into athletic operations, as universities seek alternative means for managing their finances, such as Penn State's Legacy Fund and the Big Ten's partnering with investment bank Evercore for private equity pitches.
