Penn State makes history as one of the first programs to sign on for Elevate’s eight-figure College Investment Initiative, report says, but Pat Kraft disputes it

4:38 p.m. update: Read Blue White Illustrated’s updated story, which includes a statement from Pat Kraft, by clicking here.

4:12 pm update: In a statement to Yahoo Sports, Pat Kraft denies the reports, saying “Elevate serves as our partner in ticketing strategy and operations. To clarify, our relationship is strictly limited to these services. We have no affiliation or involvement with any private equity firm or fund.”

Original story:

Penn State Athletics is reportedly adding a new funding avenue to its financial portfolio ahead of the start of the revenue sharing era on July 1. Sportico reports, and On3’s Pete Nakos has confirmed, that the Lions are one of two schools who have signed up for sports consulting firm Elevate’s College Investment Initiative. UCLA is the other school reportedly joining the private capital venture. And more are expected to join in the future.

Details are still scarce regarding exactly what it will mean for Pat Kraft’s athletic department moving forward, beyond having access to the $500 million investment fund. Per Sportico, it is “offering colleges capital for revenue-generating projects such as venue upgrades, NIL platforms and multimedia rights development.”

“It’s upfront capital, as we do have a multi-year agreement for Elevate services and from a payback perspective as well, on that capital investment,” Elevate’s chief business officer for college, Jonathan Marks, told On3 on Monday. “We believe that the $500 million is just a starting point. With the discussions that we’ve had before the announcement, to what we’re having now, we firmly believe we’re going to be able to increase that significantly, and expect to have another three to five or six deals done by football season. We expect that number to continue to grow from there.”

More: As rev-share era approaches, Penn State Athletics adds staff to key department

In an open letter published over the weekend, Kraft told fans that the athletic department would maximize its spending, which can go up to $20.5 million per year, according to the NCAA vs. House legal settlement that was agreed to last week. It allows colleges to pay athletics directly for the first time while also increasing the number of scholarships each sport can give out, among other things.

“While the world around us changes, our steadfast focus on supporting student-athletes and winning championships remains constant! We had a terrific 2024-25 academic and athletic year, and next year looks to be one of the best in our history, and because of those successes, Penn State enters this new era of college sports in a position of strength and ready to attack this new collegiate landscape,” Kraft writes in his letter.

“While change can be difficult, it also can provide new opportunities, and I assure you we will embrace every opportunity this new model creates. We will continue to lean into our tradition of excellence to shine academically, emphasize the impact of a Penn State degree and alumni network, and pursue excellence in competition. Now, more than ever, we must rally together to ensure our student-athletes thrive and our legacy endures.”

At Big Ten Media Days last July, Kraft showed little interest in private equity when asked about it getting involved in college sports. That was before the House settlement was finalized, of course. Whether that and the ongoing Beaver Stadium renovation project were the catalyst for reportedly signing up for the College Investment Initiative is not immediately clear.

“Why would I give up my money? They basically are saying that, ‘We’re done. We don’t know how to run our business.’ But you got to get money back to private equity. They don’t just give you money,” Kraft said last July.

“We’re in the Big Ten. Can someone guarantee me my Big Ten revenue every year? But like, why would I, why would Penn State? take private equity money? I got 94,000 season ticket holders. We sell out hockey, we sell wrestling. I got the best fan base in the country. Why do I need private equity? Someone tell me.”