Athletic directors from Penn State and UCLA have firmly stated that their institutions have no ties to private equity funding. This statement arrives following last week’s significant House v. NCAA settlement, which has opened possibilities for private equity to penetrate the realm of college sports.

Pat Kraft of Penn State and Martin Jarmond of UCLA conveyed to Yahoo Sports’ Ross Dellenger that their collaborations with sports consulting firm Elevate do not involve private capital. This response came after Sportico reported that Big Ten members had formed partnerships in Elevate’s new $500 million initiative aimed at funding college athletic departments.

Elevate currently serves as UCLA Athletics’ ticketing partner and is looking to expand its partnership, but Jarmond asserted, “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.”

Last week, Elevate launched its College Investment Initiative financed entirely by Velocity Capital Management and the Texas Permanent School Fund. Velocity, under the ownership of David Abrams and billionaire Robert Budi Hartono, commenced operations three years ago and had assets valued at $257 million as of December 2024, according to Sportico. The Texas Permanent School Fund, which supports public education in Texas, possesses over $57 billion in assets.

Kraft reiterated to Dellenger, “Elevate serves as our partner in ticketing strategy and operations. To clarify, our relationship is strictly limited to these services. We have no affiliation or involvement with any private equity firm or fund.”

The fund intends to prioritize credit agreements over equity trades, seeking investments designed to create sustainable revenue streams for its partners. Moreover, it aims to provide consulting services from its co-founders and supporters.

Both athletic programs have had successful seasons in the Big Ten. Penn State notably advanced to the College Football Playoff semifinals, while UCLA had a notable Final Four run in women’s basketball as a first seed, a placement in the Men’s College World Series, and a national title in men’s water polo.

Private equity discussions have infiltrated collegiate athletic conversations, seen as both a potential pioneer and challenge. Schools like Florida State previously looked into these opportunities but did not finalize any agreements. The Big 12 also considered a $1 billion private equity investment last summer, aiming for a 20% stake, but opted against pursuing it.

As financial resources dwindle, schools find themselves in an escalating race to keep pace with the wealthiest athletic departments. The influx of funds tied to private equity arrangements could provide not only support for athletic teams but also help with the financial obligations stemming from the House v. NCAA settlement, which imposes up to $22 million on power-conference institutions over the next decade. With the settlement establishing the framework for revenue sharing with student-athletes, operational costs are anticipated to increase significantly.