UK athletics transitioning into holding company: Here’s what we know about Champions Blue

LEXINGTON, Ky. (FOX 56) — The University of Kentucky board of trustees approved a plan on Friday to convert the university’s athletics department into a limited liability company (LLC) named “Champions Blue.”

According to university officials, it’s conceivably the first instance of a major athletics program being converted into a holding company. They expressed that the goal is to increase flexibility, pave the way for new opportunities, and enhance expense management.

The “Champions Blue” proposal was introduced on Thursday afternoon and approved on Friday, April 25, the university said.

“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.”

According to UK, a similar strategy has already been implemented through UK Healthcare. It’s used to acquire community hospitals, which now report to the university and its board of trustees.

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

The Champions Blue Board is set to regularly meet to guide President Capilouto and UK Director of Athletics Mitch Barnhart for growth, such as expanded premium seating and fan amenities in Kroger Field or public-private partnerships.

Barnhart told FOX 56 News he thinks Champions Blue can benefit central Kentucky.

“We’ll still be under the auspices of the board of trustees, we’ll still have an athletics committee, and we’ll have this group down here, that is sort of guiding us through strategically, how we can do some things better.”

“Our mission remains the same: to put championship rings on fingers and diplomas in hands,” said Barnhart. “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.”