The University of Kentucky Board of Trustees on Friday will consider spinning its athletics department off into a limited liability company (LLC) or holding company that would report to the university, the school announced Thursday.
The plan was discussed Thursday by the UK Athletics Committee and is far enough down the tracks that it has its own name -- Champions Blue, LLC. If approved, Kentucky believes it will be the first major athletics department to structure itself this way.
Reading between the lines, Champions Blue would give Kentucky the freedom to pursue money-making opportunities that the current structure as a department within the overall university does not. From the release:
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. Opportunities could include developments such as expanded premium seating and fan amenities in Kroger Field or public-private partnerships to develop revenue-generating ventures.
While not addressed specifically within the release, Champions Blue could potentially provide a path toward a fully professional, mostly sane model of college athletics. Working for a for-profit subsidiary of the university, athletes could potentially become employees of the LLC that represents the university, as opposed to students of the university who are paid to compete but somehow are not employees.
“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," AD Mitch Barnhart said.
“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.”