T
ennessee is partnering with outside developers to create new fan experience elements near Neyland Stadium, a trend that could be replicated across college athletics. Real estate investment in college sports has gained traction, offering private equity investors an entry point into the industry. American universities possess vast landholdings, which can be leveraged for investment in affordable housing and facilities upgrades.

    Investing in athletic facilities, such as premium spaces or LED boards, can generate returns for investors while addressing revenue sharing with athletes. Jonathan Marks of Elevate predicts that new premium spaces will become a major capital investment wave in college athletics. Public-private partnerships (P3s) have successfully benefited both universities and outside investors, exemplified by the Oak View Group-University of Texas Moody Center project.

    Elevate's $500 million college investment vehicle is poised to engage in similar projects, investing in revenue-generating spaces and then capturing a share of related sales or consultancy business. Mixed-use developments near sports venues can attract events, enhance campus life, and create opportunities for brands to partner with universities. Private capital could also be engaged at the conference level, providing a single entry point into various possibilities.

    Commissioner Tim Pernetti suggests that private capital partners could offer a range of services to member schools, from endowment investments to real estate financing and inventory development. Physical, revenue-generating spaces provide tangible community impact, new revenue, and long-term stability, making them an attractive proposition for private investors. For entrepreneurial athletic departments and universities, private investors can facilitate improvements faster than traditional donor cultivation or bureaucratic processes.