New model represents innovative approach to future of college athletics

LEXINGTON, Ky. (April 24, 2025) — With a charge to continue to be one of the country’s top programs, University of Kentucky Athletics may soon reside in a holding company.

This new model — perhaps the first of its kind in the country among major programs — is designed to increase flexibility and enable the department to continue as one of the best in the country by finding new opportunities to generate additional revenue and more efficiently manage expenses.

That’s the proposal being considered today and tomorrow by the UK Board of Trustees. If adopted, the entire UK Athletics Department would be shifted to a limited liability or holding company being created called Champions Blue, LLC.

The UK Athletics Committee is discussing the proposed opportunity this afternoon. The full UK Board of Trustees will consider the move at its meeting Friday.

The strategy will provide the department with the flexibility to unlock new revenue streams through public-private partnerships and potentially other transactions, such as real estate.

The holding company structure is similar to how UK in recent years has acquired two major community hospitals — King’s Daughters Medical Center in Ashland, Kentucky, and St. Claire Healthcare in Morehead, Kentucky. Both hospital systems are within similarly structured holding companies that, ultimately, report to the University and its Board of Trustees.

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. Both hospital systems in this holding company model are experiencing growth in jobs, stronger bottom lines and improvements and expansion to important capital infrastructure.

“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.”

Under the proposal, the department will shift to Champions Blue, which the Board is being asked to direct the University to incorporate.
           
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.

This potential move comes as intercollegiate athletics is undergoing unprecedented changes. Over the last 15 years, college athletics has moved toward a model where student athletes may be compensated by monetizing their Name, Image and Likeness (NIL).

A federal judge in the coming weeks is expected to approve an overarching settlement. The House Settlement will create the rules and terms for how participating Division I departments can share revenue with student athletes, manage rosters and scholarships and continue to allow players on teams to seek NIL deals. These moves will add millions more each year to the expenses of intercollegiate programs.

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. The effort was led by Senate Majority Leader Max Wise.

The changing landscape, and approaching settlement, prompted Barnhart, Capilouto and other UK officials to begin planning for how the athletics program cannot simply survive in this new era but find ways to thrive.

“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.”