Kentucky board of trustees approves shifting university's athletics department into limited liability company

On Friday, the University of Kentucky's board of trustees approved a proposal to transform the athletic department into a limited liability company called Champions Blue, LLC. The move represents a radical shift as college programs continue to adjust to an impending decision from the United States District Court that could lift restrictions on the sharing of media rights revenues.

Kentucky's newest venture is thought to be the first of its kind among major universities in the United States.

"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," Kentucky president Eli Capilouto said in a statement. "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."

The new structure will allow Kentucky's athletic department to explore new revenue streams through partnerships outside of the sphere of college athletics, such as real estate. The proposal would create a Champions Blue Board that would advise the development of the LLC and its eventual incorporation with the university itself.

The board will also advise Capilouto and Kentucky athletic director Mitch Barnhart in "opportunities for revenue growth." press release from the school specifically mentions that Champions Blue, LLC could also offer expanded premium seating and fan amenities in Kroger Field.