Penn State Athletics Denies Report of Signing With Private Equity Initiative

Penn State denied a report that it has partnered with a new $500 million private equity fund to help finance the future of Nittany Lions sports. Sportico on Monday reported that Penn State and UCLA had signed with Elevate's Collegiate Investment Initiative, a sports fund backed in part by a private equity firm. The initiative will provide capital and strategic planning to college athletic departments, according to a news release.

According to Sportico, multiple sources said Penn State and UCLA were two of the fund's initial partners. Penn State acknowledged a contract with Elevate but said it does not include private equity. In 2024 Penn State signed a "landmark" ticketing contract with Elevate, with which it had a previous deal.

“Elevate serves as our partner in ticketing strategy and operations," Penn State said in a statement to multiple outlets. "To clarify, our relationship is strictly limited to these services. We have no affiliation or involvement with any private equity firm or fund.”

Penn State's clarification of its deal with Elevate follows Athletic Director Pat Kraft's comments in 2024 that the program will not tap private equity to help fund revenue sharing or pay for capital projects. Kraft made that point strongly at the Big Ten Football Media Days in 2024.

"Why do I need private equity — for someont to tell me I'm stupid?" Kraft told reporters in Indianapolis. "I have enough people around me to tell me I'm stupid. ... Private equity runs businesses. [Penn State Athletics is] a business, I'm not disputing that. We're a $200+ million business, but my business is to take care of my kids."

Elevate called its Collegiate Investment Initiative a "groundbreaking" fund that will assist athletic departments in the revenue-sharing era. It will help fund capital projects, venue updates, multimedia rights, NIL operations and more.

“College athletics are at a critical inflection point, and institutions need partners who can bring both capital and strategic expertise to the table,” Al Guide, chairman and CEO of Elevate, said in a statement. “With the Collegiate Investment Initiative, we’re doubling down on our commitment
to helping schools thrive not just today, but for decades to come.”

Kraft said recently that Penn State will share the full $20.5 million in revenue with athletes as detailed in the recent settlement of the House vs. NCAA lawsuit. Penn State Athletics also is self-funding the $700 million renovation of Beaver Stadium that university officials repeatedly have said will not use student fees or tuition dollars.

Revenue growth was a signature point of Penn State's 2024 deal with Elevate, which the trade publication VenuesNow estimated could reach $1 billion in long-term revenue. Elevate will "lead fan engagement, ticketing, and premium seating and experiences strategy for Penn State Athletics," according a 2024 news release. Elevate also will be involved in premium experiences at Beaver Stadium, which includes the new suites and two clubs central to the renovation.

“Our partnership with Elevate will take our seating and experiences strategy to the next level,” Kraft said in the 2024 statement.

According to Sportico, Elevate will announce specific schools for the College Investment Initiative in the future. Penn State's exact role should become clearer then, though Kraft has said that it will not involve private equity.

"I'm not saying that we are not a big business," Kraft said in 2024. "We have to create revenue, we have to do things to drive the finances of it all. But these are college kids, and they're going to make mistakes. We're here to catch them and we're here to help them and we're going to do that the whole way. If you start to bring in other people, trying solely to just make a profit, the soul and the heart of college sports is going to go away."