UK changes its athletic department to an LLC to become 'more nimble' in finding revenue

With college athletics bracing for the expected approval of a $2.8 billion NCAA antitrust settlement, the University of Kentucky is believed to be the first school to convert its athletic department to a limited-liability holding company.

The creation of Champions Blue LLC, approved last week by the university’s Board of Trustees, is seen as a way for Kentucky to become more nimble in finding new revenue. The pending settlement in the House case will clear the way for schools to share up to $20.5 million annually with their athletes, but name, image and likeness deals on top of that are seen as a key asset in landing and keeping elite recruits — and that takes money.

The plan calls for a board that will have wide experience in fundraising, and the school noted it hopes to “unlock new revenue streams through public-private partnerships and potentially other transactions, such as real estate.”

“There are so many benefits to creating Champions Blue,” said Jacob Most, UK’s director of strategic communications. “It provides the flexibility needed to help us stay well-positioned during this period of continued evolution in college athletics. We will benefit from a new board of internal and outside experts with sports business experience — including in pro sports — that will help guide us in finding revenue streams to support our teams.”

The so-called House settlement and changing landscape were driving factors in the decision, and UK said in its announcement Friday that the changes “will add millions more each year to the expenses of intercollegiate programs.”

An LLC provides some legal protections against losses or risks, and experts said transitioning to one may be a wise choice for major institutions like Kentucky. Being able to make quicker choices in the current landscape could be a key benefit.



(AP Photo James Crisp)