UK Board considers more than $100 million in investments in future of UK Athletics

LEXINGTON, Ky. (June 12, 2025) — The University of Kentucky Board of Trustees on Thursday began consideration of proposed investments of up to $110 million in UK Athletics facilities over the next few years.

The proposed investments — to be reviewed by the Board’s Athletics Committee Thursday before going to the full Board of Trustees on June 13 — are part of a new governing model and operating structure for UK Athletics, designed to grow revenues in anticipation of a new era in which student athletes can receive compensation in addition to their scholarships and previous benefits.

“We are proposing a new strategic governance structure and operating model, unlike any in the country,” said UK President Eli Capilouto. “The goal is to incentivize innovation. The idea is to remain a premier program by pushing us to examine creative ways to grow and generate the revenues necessary to support our success.”

The facility investments are part of an internal capital loan, which will be repaid with interest, from the university to UK Athletics. The initial investments include:

• $15 million for maintenance at Kroger Field Stadium.
• $13 million to renovate corner suites and elevators.
• $5 million to improve the soccer and softball facilities; UK Softball will host the SEC tournament in 2026.
• $8 million for initial design of a West End Zone Club space and Wi-fi improvements at Kroger Field.
• A Request For Information (RFI) to develop an Entertainment District on the UK campus, which could include concepts such as restaurants, hotels and other entertainment options.
• An additional $31 million operating loan, also to be repaid with interest, as UK Athletics moves into its new operating and governance model and incurs additional new expenses.

As work and design are completed on these projects, UK Athletics will be able to draw down additional dollars — as part of the overall capital loan — to begin construction work as well as development of additional revenue-generating concepts.

“These investments and the new operating model represented by Champions Blue underscore that we are embracing change and rising to the challenges posed by this dynamic landscape,” said UK Director of Athletics Mitch Barnhart. “At a time when many are searching for answers, our administration has built on the strong partnership we have enjoyed for more than 20 years here on the UK campus. We look forward to continuing that into the future. We will remain focused on education and competition, putting championship rings on fingers and diplomas in hands."

Last Friday, U.S. District Judge Claudia Wilken approved the House Settlement. Under the terms of that settlement, beginning July 1, college athletics programs will be able to share revenue of up to $20.5 million annually with student athletes.

In anticipation of that settlement in April, the UK Board of Trustees unanimously moved forward with the creation of a holding company — Champions Blue, LLC. Over the next year, the UK Athletics Department will be shifted to Champions Blue, LLC.

The non-profit holding company is designed to 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 — UK King’s Daughters Medical Center in Ashland, Kentucky, and UK St. Claire Healthcare in Morehead, Kentucky. Both hospital systems are within similarly structured holding companies that, ultimately, report to the university and the Board of Trustees.

The Athletics Committee on Thursday was asked to consider the first members of the Champions Blue Board of Governors. The Athletics Committee also reviewed the proposed Fiscal Year (FY) 26 budget for UK Athletics as well as a 3.5-year financial plan that depicts how the program will successfully move forward toward balanced budgets in this new era of compensation for student athletes.

The full Board will consider both the investments and the composition of the Champions Blue Board of Governors on Friday along with UK’s institutional budget for FY 26. The Champions Blue Board of Governors includes four members of the university’s senior administration, including Capilouto, and three outside subject matter experts, with backgrounds in professional sports, real estate, events and facilities management. Their bios can be found here.

“During the 2025 legislative session, we moved quickly and thoughtfully to equip UK and athletics programs across all our public universities with the tools they need to compete and thrive in a rapidly evolving landscape,” said Senate Majority Leader Max Wise, R-16. “The University of Kentucky has responded with an innovative governance and organizational model, backed by strategic investments that position the program for long-term growth and success. I believe Champions Blue will become a national model for the future of collegiate athletics.”

Wise was the primary sponsor of SB 3 during the 2025 session, which essentially enables universities in the state to implement the provisions of the House Settlement.

“Athletics at UK and in Kentucky means more than competition in stadiums and arenas. It is an important part of our state’s brand nationally and an economic driver in our Commonwealth. It is more critical than ever that our universities and athletic programs have the tools they need to succeed, and that is why we made SB 3 a priority,” said State Rep. Josh Branscum, R-83, who carried SB 3 in the House and serves as chair of the House Economic Development and Workforce Investment Committee. “Today, with the Champions Blue model and the investments being made, the University of Kentucky is making a bold statement about the role UK and the Commonwealth will play in the future of intercollegiate athletics.”

“We build — not for ourselves but for the future we hope, with partners, to create for the state, whose name adorns the front of every jersey for every athlete that competes for our university,” Capilouto said. “That’s what these investments represent — investments in our student athletes, our university, our state and the future we aspire to create and sustain for them all.”