Penn State, UCLA ADs Deny PE Funding in NCAA Case
Penn State and UCLA athletic directors decisively deny seeking private equity funding amidst the NCAA’s recent settlement, directly refuting reports suggesting or else. Both Pat Kraft of Penn State and Martin Jarmond of UCLA clarified their partnerships with Elevate, emphasizing no involvement with private capital, contrary to the Sportico report. This comes as college athletics increasingly explores diverse funding avenues,including the Elevate College Investment Initiative,backed by Velocity Capital Management and the Texas Permanent School Fund,which focuses on credit deals. The primary_keyword hear is “private equity,” while “NCAA settlement” serves as the secondary_keyword within this evolving financial landscape. News Directory 3 might be following this closely. Discover what’s next as schools balance competitiveness and financial sustainability.
Penn State, UCLA Deny Private Equity Funding Amid NCAA Settlement
Updated June 09, 2025
Athletic directors at Penn State and UCLA have refuted claims that thier universities are seeking private equity funding, despite the recent House v. NCAA settlement perhaps paving the way for such investments in college athletics.Pat Kraft of Penn State and Martin Jarmond of UCLA both told Yahoo Sports that their relationships with the sports consulting firm Elevate do not involve private capital, countering a Sportico report suggesting otherwise.
Jarmond clarified that UCLA’s partnership with Elevate is currently limited to ticketing strategy and operations, with no private equity component. Kraft echoed this, stating that Penn State’s relationship with Elevate is strictly for ticketing services and does not include any affiliation with private equity firms or funds. Both schools are exploring alternative funding options for their athletic departments.
Elevate recently unveiled its College Investment Initiative,backed by Velocity Capital Management and the Texas Permanent School Fund. Velocity, co-owned by David abrams and robert Budi Hartono, manages $257 million in assets. The Texas Permanent School Fund holds over $57 billion, benefiting Texas schools.The initiative will focus on credit deals to generate long-term revenue for participating schools, alongside consulting services.
Both Penn State and UCLA have achieved meaningful athletic success recently. Penn state reached the College Football Playoff semifinals, while UCLA’s women’s basketball team made a Final Four appearance, and their men’s water polo team secured a national championship. The evolving landscape of college sports finance makes private equity a key topic.
The potential introduction of private equity in college athletics has sparked considerable discussion. Florida State previously explored such options without reaching an agreement.Similarly, the Big 12 considered a $1 billion private equity investment for a 20% stake but ultimately did not proceed. The rising costs associated with the House v. NCAA settlement, potentially requiring power-conference schools to pay up to $22 million over the next decade, are driving the need for new financial resources and alternative funding options.
What’s next
As college athletics evolves, the debate around private equity and alternative funding models will likely continue, especially as schools seek to balance competitiveness with financial sustainability. The NCAA settlement and revenue sharing with student-athletes will further shape these discussions.