The University of Kentucky Board of Trustees will be discussing a proposal to have the school's athletics programs reside within a holding company, it was announced Thursday.
The new model, which could be the first of its kind, is designed to increase flexibility and enable the UK Athletics Department to continue as one of the best in the nation by finding new ways to generate revenue and manage expenses in the NIL era.
If adopted, the entire UK Athletics Department would be shifted to a limited liability or holding company called Champions Blue, LLC. The board will be evaluating the proposal on Thursday and Friday.
A new governance board, composed of UK officials and outside expertise from business and the professional sports world, will provide the new holding company and athletics officials with strategic guidance and counsel.
“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,” said UK President Eli Capilouto. “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 Champions Blue Board, a public entity, will meet regularly to advise President Capilouto and UK Director of Athletics Mitch Barnhart on strategic directions and opportunities for revenue growth, including real estate investments.
This potential move comes as intercollegiate athletics is undergoing unprecedented changes. In recent years, college athletics has moved toward a model where student athletes may be compensated by monetizing their Name, Image, and Likeness (NIL).
In the near future, a federal judge is expected to approve an overarching settlement proposed by Congress to create rules for how revenue will be shared with athletes and how rosters will be constructed in the future with players continuing to benefit from their NIL deals.
During the recently completed Kentucky General Assembly session, lawmakers in both the House and Senate unanimously adopted legislation designed to allow UK and other programs in the state to implement the federal settlement, if and when it is adopted.
“Our mission remains the same: to put championship rings on fingers and diplomas in hands,” said Barnhart, who is currently sitting on the national implementation committee determining how the new settlement, if adopted, will be implemented across the country.
“But how we accomplish that goal — how we finance our teams, protect our future, and support our student athletes — will have to change. That’s what this new model represents — an understanding that in the market we are in that we have to be creative.
“We have to find new ways to generate revenue, manage expenses, and think about opportunities to grow. I am excited about what the future holds, through even greater collaboration with the University as we partner together to continue UK Athletics as such an important part of the mission of the University of Kentucky.”
