First domino falls as University of Kentucky athletic department launches its own LLC
May 2, 2025 | Parker Graham
Editor’s note: The perspectives expressed in this commentary are the author’s alone. Parker Graham is co-founder of Vestible, an Overland Park-based investment platform that gives fans ownership in the career trajectories of their favorite players.
The University of Kentucky’s athletic department is officially becoming its own LLC. Anyone in athletics needs to understand the implications here.
ICYMI: Kentucky to shift athletic dept. to private LLC company in historic move
Parker Graham, Vestible
The board of trustees approved the move to turn the athletics department into a limited liability company called Champions Blue, LLC.
They are the first to make this move, but we’re going to see many more versions of this pop up as the House v. NCAA settlement grows closer.
The biggest takeaway is this: Separating the athletic department as its own LLC gives them the flexibility they are desperate for right now, particularly for partnerships and fundraising.
You’ll see programs utilizing this in three ways:
Debt capital
Now that the athletic department is separate and has its own dedicated board, it will be able to utilize different types of loans and credits. The LLC makes the approval process for this kind of capital much easier and faster.
Direct fundraising
Rather than having to use third parties (NIL collectives) for fundraising, its LLC can now fundraise directly for the athletic department and streamline access to this cash.
Equity
The LLC will open a whole new way to raise capital through equity: public and private. It’s unclear exactly how universities will go about this yet, but rest assured, it’s coming very soon.
It starts here, with the University of Kentucky, but this is just the beginning.
Let the domino effect begin.
Parker Graham is a serial founder, CEO, and fintech entrepreneur, as well as a former professional football player. His startup, Vestible, is a first-of-its-kind athlete investment platform, allowing investors to participate alongside real athletes in the trajectory of their careers.
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