UCLA, Penn State Deny Private Equity Funding Deal

What previously became groundbreaking, historic news of UCLA and Penn State partnering with Elevate, a global sports marketing agency, for a $500 million private equity deal was denied quickly thereafter by both athletic directors, according toYahoo! Finance.

Sportico initially reported that there were two schools already signed with Elevate for its new College Investment Initiative, UCLA and Penn State.

The fund was made to help universities and their athletic programs navigate a new era in the collegiate sports landscapes following the Judge Claudia Wilken's historic approval of the House v. NCAA settlement allowing colleges to engage in revenue sharing with their student-athletes.

To be clear, according to a UCLA spokesperson, the university is already partnered with Elevate for ticketing, but has not engaged with them for their private equity sports fund.

UCLA's athletic department has largely been in the hole financially. Following their departure from the Pac-12 and move to the Big Ten, the Bruins are regularly among the top FBS schools in spending but rarely see it yield any results or financial stability. UCLA's athletic program most notably put up $219.5 million in debt over the last six fiscal years.

Regardless of UCLA's association with Elevate or any other private equity funding, Jarmond has made it known that they will surge through this new era of college revenue sharing.

“This is a pivotal moment in collegiate athletics, and we have to continue to invest in our athletics program to compete at the highest level,” Jarmond told The Times following Wilken's ruling. “That’s why student-athletes come to UCLA, to get the best education and compete at the highest level, and we must invest in our student-athletes to provide that championship-level experience.”

Jarmond has long been an advocate for college athletes getting paid, which is why it's so important that not only the settlement passed, but that his intentions are in line with UCLA's new chancellor Julio Frenk.

“Chancellor Frenk has been extremely supportive of athletics and the impact that it has on our community,” Jarmond said. “He has been supportive of our efforts every step of the way. He hit the ground running during a pivotal time not just for athletics but the university, and he has demonstrated support at a high level and I’m grateful for his leadership at such a pivotal time for athletics.”

Frenk told the LA Times that ensuring the success of UCLA athletics will be paramount in his tenure with the university, noting that the success of its sports programs are often linked to many other factors that contribute to a successful university.

“I am [going to be involved] because I think athletics plays a very central role,” Frenk told The Times. “It is, first, an avenue for recruiting very talented students. Secondly, it benefits the other students. It enriches the student experience of everyone. But let me tell you, when we talk about the contribution to society, part of the reason many universities have a deficit, it’s not because of football. Football actually has a positive cash flow for the university."

Alignment at all level of the university is important as the college sports world shifts. UCLA's historic deal is one step forward in making Westwood an athletic empire.

"We have to be bold and innovative in this new world,” Jarmond said. “UCLA has always been on the forefront and been a leader and that’s not going to change. We will embrace this new era and we will continue to support our student-athletes at a championship level.”