The House v. NCAA settlement has fundamentally reshaped the financial landscape of college athletics, introducing private capital as a potential source of funding as colleges compete for talent and resources. Transactions such as the University of Utah’s Crimson Brand Partners with private equity firm Otro Capital and conference-level financing proposals reflect a growing recognition that traditional revenue sources may be insufficient to meet the demands of the post-House era.

Many of these transactions, however, are receiving criticism and pushback. The debate has often been framed as a binary choice between permitting private equity or preserving higher education. That framing arguably misses the central issue. The real question is not whether universities should accept outside investment, but whether they can leverage the benefits of private capital while preserving institutional control over the realization of their core missions.

By properly designing and structuring governance, universities can raise outside investment in a way that strengthens — not undermines — the long-term sustainability of college athletics.

The financial pressures driving institutional interest in private investment are substantial, and private investors can offer more than capital. They frequently bring commercial expertise, operational discipline and access to strategic relationships. Universities should not dismiss these capabilities. The question is how to harness them without compromising the educational values of the universities and the trust of university stakeholders.

Critics of outside investment raise several legitimate concerns.

First, critics fear investor influence over university decision-making respecting the university’s athletic programs. While investors understandably seek to protect their investments, governance rights in the commercial special purpose vehicles through which investments generally are made risk gradually shifting influence away from........

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