STATE COLLEGE, PA – DECEMBER 21: Drew Shelton #66 of the Penn State Nittany Lions before a game between SMU and Penn State at Beaver Stadium on December 21, 2024 in State College, Pennsylvania. (Photo by Roger Wimmer/ISI Photos/Getty Images)
Roger Wimmer/isi Photos | Getty Images Sport | Getty Images
As the college athletics landscape undergoes seismic changes, Elevate on Monday announced a $500 million fund to help universities create long-term growth through strategic investments.
The global sports and marketing agency has partnered with private equity firm Velocity Capital Management and Texas Permanent School Fund Corporation to provide schools with money and resources to develop revenue-generating projects.
On Friday, a judge approved a settlement that will require individual schools to pay up to $20.5 million to student-athletes. As they awaited this decision, many schools have been exploring new ways to generate revenue.
Elevate works with colleges and universities to help them understand what projects they should pursue and how to monetize them.
“In our minds, the benefit of having access to capital and robust services that these schools can tap into as they think about professionalizing their rights, is a true differentiator,” said Al Guido, chairman and CEO of Elevate, who also serves as president of the San Francisco 49ers.
Schools will use the capital for infrastructure and commercial projects ranging from modernizing venues, expanding premium seating and enhancing multimedia and digital rights and to investing in name, image and likeness platforms for athletes.
“Schools will utilize the new capital to create new premium experience spaces where they can monetize those tickets at a higher price point. The main focus is increasing the fan experience and maximizing revenue,” said Jonathan Marks, chief business officer for college at Elevate.
Elevate said it has already closed two eight-figure deals with Power Four schools. It hopes the investment fund will appeal to its 60 other university clients, which include schools like UCLA, Alabama, Penn State, Notre Dame and Florida.
“A lot of these schools have small staffs, and so if we can come in and provide that additional firepower and the data and insights and support, we can help them generate a much higher return on that capital.” said Marks.
College spending on sports infrastructure has ramped up dramatically, with 58 stadiums and 27 arena projects scheduled to conclude in 2025, according to Sports Business Journal. College stadium projects aren’t expected to slow down in 2026, with spending expected to exceed $3 billion.
