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Kentucky Athletics, now a holding company. Who will be next?
Posted on 4/28/25 at 9:06 am
Posted on 4/28/25 at 9:06 am
CBS Sports
On Friday, the University of Kentucky's board of trustees approved a proposal to transform the athletic department into a limited liability company called Champions Blue, LLC. The move represents a radical shift as college programs continue to adjust to an impending decision from the United States District Court that could lift restrictions on the sharing of media rights revenues.
Kentucky's newest venture is thought to be the first of its kind among major universities in the United States.
"We believe this is an innovative approach -- a new structure and governance model that thoughtfully contemplates how we strengthen Athletics, protect and promote the University and open up new opportunities for growth," Kentucky president Eli Capilouto said in a statement. "It's a foundation and model that we are calling Champions Blue. Athletics and its success have always been the result of an incredible and productive partnership with campus. It will continue to be in the future — if we seize the opportunities in front of us to meet the challenges that lie ahead."
The new structure will allow Kentucky's athletic department to explore new revenue streams through partnerships outside of the sphere of college athletics, such as real estate. The proposal would create a Champions Blue Board that would advise the development of the LLC and its eventual incorporation with the university itself.
On Friday, the University of Kentucky's board of trustees approved a proposal to transform the athletic department into a limited liability company called Champions Blue, LLC. The move represents a radical shift as college programs continue to adjust to an impending decision from the United States District Court that could lift restrictions on the sharing of media rights revenues.
Kentucky's newest venture is thought to be the first of its kind among major universities in the United States.
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If tweet fails to load, click here. "We believe this is an innovative approach -- a new structure and governance model that thoughtfully contemplates how we strengthen Athletics, protect and promote the University and open up new opportunities for growth," Kentucky president Eli Capilouto said in a statement. "It's a foundation and model that we are calling Champions Blue. Athletics and its success have always been the result of an incredible and productive partnership with campus. It will continue to be in the future — if we seize the opportunities in front of us to meet the challenges that lie ahead."
The new structure will allow Kentucky's athletic department to explore new revenue streams through partnerships outside of the sphere of college athletics, such as real estate. The proposal would create a Champions Blue Board that would advise the development of the LLC and its eventual incorporation with the university itself.
This post was edited on 4/28/25 at 9:07 am
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Posted on 4/28/25 at 9:07 am to kywildcatfanone
quote:
Who will be next?
Everyone? This is just the next logical step of profit sharing
Posted on 4/28/25 at 9:08 am to kywildcatfanone
The we should get rid of Mitch Barnhart since he will be doing nothing constructive.
Posted on 4/28/25 at 9:08 am to kywildcatfanone
Pathetic
Posted on 4/28/25 at 9:13 am to kywildcatfanone
This feels like major news. I’m not sure what it means exactly, but it feels big
Posted on 4/28/25 at 9:18 am to kywildcatfanone
So now the players are officially employees? Do they have to play school anymore?
Posted on 4/28/25 at 9:23 am to kywildcatfanone
so the power brokers at UK are walking away from any potential tax-exempt status under Section 501(c)(3)....?
the corporate rev streams and R/E will bring in funds - but will donors continue at elevated levels if their contributions are no longer tax-deductible on their end?
the corporate rev streams and R/E will bring in funds - but will donors continue at elevated levels if their contributions are no longer tax-deductible on their end?
Posted on 4/28/25 at 9:25 am to CR4090
Good question. It could be a similar arrangement to let's say a hospital that pays prospective workers to obtain nursing school whereas the student has to meet conditions and terms of employment. In this case the LLC is the employer requiring the employee to fullfill similar obligations.
Posted on 4/28/25 at 9:28 am to jangalang
Posted on 4/28/25 at 9:53 am to jangalang
quote:
It could be a similar arrangement to let's say a hospital
UK already has this with it's hospital and dormitory management.
Every school will do this or similar, we are just the first public school to do it. Duke and Vandy have already done this as private schools.
Posted on 4/28/25 at 10:05 am to kywildcatfanone
On Friday, the University of Kentucky's board of trustees approved a proposal to transform the athletic department into a limited liability company called Champions Blue, LLC.
Your new company has no control over the bidding process. It has no ability to regulate the outright greed dominating these ongoing player auctions. Congrats on your brand new way of throwing good money after bad.
Your new company has no control over the bidding process. It has no ability to regulate the outright greed dominating these ongoing player auctions. Congrats on your brand new way of throwing good money after bad.
Posted on 4/28/25 at 10:09 am to kywildcatfanone
Boosters are tired of throwing money away since they don't even get write offs for skyboxes any longer. They want some ownership for putting all this money into the sieve that is NCAA athletics.
To own a part of an LLC, you become a member and acquire a membership interest, which can be expressed as a percentage or units. This ownership is typically gained through a financial or asset contribution, and is usually documented in an LLC operating agreement.
To own a part of an LLC, you become a member and acquire a membership interest, which can be expressed as a percentage or units. This ownership is typically gained through a financial or asset contribution, and is usually documented in an LLC operating agreement.
Posted on 4/28/25 at 10:27 am to bigDgator
It also eliminates some of the red tape of public universities needing to get approval from it's state govts for projects.
Posted on 4/28/25 at 5:22 pm to Lizardman2
Yep
Posted on 4/28/25 at 5:44 pm to JPLSU1981
quote:
This feels like major news. I’m not sure what it means exactly, but it feels big
Exactly
Posted on 4/28/25 at 5:44 pm to kywildcatfanone
Do you like the idea? Can’t say I dislike it.
Posted on 4/28/25 at 6:04 pm to kywildcatfanone
What’s the property taxes on Rupp Arena and Kroger field going to cost you now that you’re an LLC?
Posted on 4/28/25 at 6:41 pm to Auburn80
Rupp Arena is owned by the city.
Posted on 4/28/25 at 6:43 pm to BlindedMeWithScience
Yep, you'll see all major schools do something similar soon enough.
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