University of Kentucky Makes Historic Change to Athletic Department for New NIL Era

The University of Kentucky has made a historic change to the setup of their athletic department in preparation of the new NIL era that is expected to come.

Alex Martin/Journal and Courier / USA TODAY NETWORK via Imagn Images

Everyone in college athletics is bracing for a new era to arrive depending on what the House v NCAA outcome is when the final ruling eventually comes.

While there are a lot of nuances that will come from this ruling, the main thing that everyone will focus on is the revenue sharing model that could reshape the entire industry of collegiate athletics.

Following the introduction of name, image and likeness into the space, things took a Wild West turn where the model became more or less pay-for-play, which was not what the original intent of NIL was supposed to be.

Because of that, college and universities across the country have tried to adapt, with the creation of collectives being implemented that raises money to give to student-athletes as a source of compensation.

What happens to these collectives if revenue sharing is implemented remains to be seen, but ahead of the ruling that will come out, there are more changes taking place to athletic departments.

The University of Kentucky just made a historic change to theirs.

Jenna Lifshen of Kernel Sports, an independent student newspaper at the University of Kentucky, states that this will allow the athletic department "to raise funds and manage expenses" in the new era of college sports that could be coming after the House v NCAA verdict.

She gives further details that this is an aim to allow Kentucky to operate more like a professional sports franchise, giving them an ability to be a business while also maintaining their connection to the university.

The main reasoning is the expense that will come from operating in this new model of college sports.

"Kentucky expects it will cost them about $50 million more every year, with the money going to player salaries, larger scholarships, and other athlete support," Lifshen reported.

The creation of "Champions Blue" will allow the athletic department to move quicker when it comes to raising additional funds and conducting business deals, while also creating a safeguard when it comes to the academic side of the university stemming from potential financial issues that could be related to athletics.

This is a landmark change in the world of college sports.

It will be interesting to see if other colleges and universities around the country follow suit with this setup and how that impacts their current NIL endeavors.

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