Private Equity Wants to Invest in College Sports. Some Schools Are Wary

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Published: 2026-08-31T15:25:30.626Z • Permanent link

According to sources close to the negotiations, private equity firms are circling several top-tier college sports programs, seeking to invest heavily in their athletic departments. These deals could potentially net investors hundreds of millions of dollars, but the delicate dance of negotiations has already produced some notable setbacks. One such instance involves the University of Louisville, where a proposed deal with Apollo Global Management reportedly stalled due to concerns over the impact on the school's athletic scholarships.

Apollo Global Management, a prominent private equity firm, has been courting several top college sports programs in recent months, including the University of Louisville and the University of Texas. The firm's CEO, Joshua Harris, has been actively courting college athletic directors and administrators, touting the potential benefits of private investment in the sector. However, some school officials remain wary of the potential risks, including the threat to their athletic scholarships and the potential for increased commercialization of the sport.

The negotiations between Apollo Global Management and the University of Louisville have been ongoing for several months, with the two sides engaging in a series of tense and sometimes public exchanges. The school's athletic director, Micky Sherman, has been vocal about his concerns, stating that any deal with a private equity firm would need to prioritize the well-being of the student-athletes. Meanwhile, Harris has maintained that his firm is committed to supporting the schools and providing much-needed resources to their athletic departments.

Private equity firms are increasingly eyeing the college sports market, driven in part by the sector's massive potential for growth and profitability. However, the implications of these deals are far-reaching, with potential impacts on research communities, markets, and policy environments. For example, a deal between a private equity firm and a major research university could lead to the commercialization of research findings, raising concerns over intellectual property rights and the potential for conflicts of interest. Similarly, the influx of private capital could lead to increased commercialization of college sports, potentially eroding the amateur status of the sport and threatening the very fabric of the collegiate athletic experience.

The potential implications of these deals are also being felt in the broader markets, where investors are taking note of the trend. For instance, shares of major sports brands such as Nike and Under Armour have seen significant gains in recent months, driven in part by investor enthusiasm for the potential for growth and profitability in the sector. Meanwhile, regulatory bodies are taking a closer look at the trend, with some calling for greater oversight and regulation of private equity firms in the sector. As the debate over the role of private equity in college sports continues to heat up, it remains to be seen how policymakers will respond.

The trend towards private equity investment in college sports is not new, but it has gained significant momentum in recent years. A 2020 report by the National Association of Collegiate Directors of Athletics found that private equity firms had invested over $1 billion in college athletic departments since 2015, with many more deals in the works. This trend is part of a broader pattern of increasing commercialization of college sports, which has been driven in part by the rise of the NCAA's Division I Power Five conferences and the increasing popularity of college football.