Kentucky athletics now an LLC

#26
#26
I think the service academies have had their athletic depts set up in a similar way. I believe that they are set up as 501 c3s and essentially operate as a contractor for the academies.
 
#27
#27
Firebirdparts said:
Here's what I think: They are not interested in paying you. They've had you paying them with absolutely nothing in return for 10,000 years. They don't want investors. They want free money, and they're actually getting it by the trainload.
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This post kind of hurts because there is so much truth behind it.

On another note, you might be surprised how many clients we have that are NOT paying for their kids college education but they are contributing funds to UT NIL and funds to essentially pay for other kids college education (and yes, I know, I know).
 
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#28
#28
Firebirdparts said:
Here's what I think: They are not interested in paying you. They've had you paying them with absolutely nothing in return for 10,000 years. They don't want investors. They want free money, and they're actually getting it by the trainload.
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No dispute here. 100%, they just want free money.
 
#32
#32
hog88 said:
I think the service academies have had their athletic depts set up in a similar way. I believe that they are set up as 501 c3s and essentially operate as a contractor for the academies.
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I’m having a hard time understanding what the academies are doing well that power conferences would want to mirror for success in the NIL era. If anything, the academies are going to be less competitive in the NIL era
 
#33
#33
In essence it protects the university from hte whole athlete/wages/employee argument which has been the primary argument about how athletes get paid without universities having to reclass htem as employees, etc, etc. Now, they would be employed by the LLC, the LLC is subcontracted back to the unviersity to sergve as it's athletic department. The nuance is that once the contract is up for renewal, if the LLC is not happy the university, could they then subcontract the entire Athletic LLC to a different unicversity ??? O therwise, how do you create an independent/private LLC and still legally keep it forever tied to it's university if they choose to enter negotiations with another university. If the newly created Blue Champions LLC is independent what recourse is there to require a athlete to be enrolled in, and attend classes. If enrollment is still mandatory, how do they have independent status as an LLC?? Guess that's why the folks that throw these things together make the good money.
 
#34
#34
Flogballs said:
I’m having a hard time understanding what the academies are doing well that power conferences would want to mirror for success in the NIL era. If anything, the academies are going to be less competitive in the NIL era
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They already seem to have relaxed the mandatory service for attending. Don't know how an academy is compensated for time attended in the even of trasnferring. Saw several in the portal trasnferring out of the academies.
 
#35
#35
GVF said:
They already seem to have relaxed the mandatory service for attending. Don't know how an academy is compensated for time attended in the even of trasnferring. Saw several in the portal trasnferring out of the academies.
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I noticed that as well. The last I was aware they would have to compensate the academy based on how long they attended. Maybe they think whatever NIL they get elsewhere is enough to offset? I believe it’s pretty expensive
 
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#36
#36
Flogballs said:
I noticed that as well. The last I was aware they would have to compensate the academy based on how long they attended. Maybe they think whatever NIL they get elsewhere is enough to offset? I believe it’s pretty expensive
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That's fair though. I'm sure cadets DOR the academies just like basic training. Difference being the cost of your enrollment duration.
 
#37
#37
Flogballs said:
I’m having a hard time understanding what the academies are doing well that power conferences would want to mirror for success in the NIL era. If anything, the academies are going to be less competitive in the NIL era
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I have no answer for ya. No clue other what the advantages are of setting up that model.
 
#38
#38
GVF said:
They already seem to have relaxed the mandatory service for attending. Don't know how an academy is compensated for time attended in the even of trasnferring. Saw several in the portal trasnferring out of the academies.
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At the beginning of their junior year, West Point cadets take an oath to fulfill this service obligation. Before doing so, cadets may leave West Point for whatever reason without incurring a service obligation.
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Loading…

www.westpoint.edu
 
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#42
#42
madbamahater said:
Doesn't this make them a for profit organization having formed a legal business entity with a new Charter for the LLC? Wouldn't this make everyone in the athletic department employees of the LLC and not the University? Wouldn't this make the athletes pure subcontractors hired by the LLC to perform work for the LLC?

Correction: Looks like Kentucky allows for non-profits to form LLCs, I guess some states do not. Becoming a new entity; does this effect their participation in being a member of the NCAA and the SEC?
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How is UK a nonprofit? They are a public owned university.
 
#43
#43
I see confusion in this setup. The scholarship offer has to come from the University, not the LLC, but the University isn't extending the offer to play athletics, the LLC is.

If I'm a player, I sue to take the offer to play athletics for the LLC and forgo the scholarship offer from the University because they are separate. I'm unsure the LLC can force someone to sign a separate scholarship offer or enroll in a University.

I think there will be a quick challenge to the academic requirements from this separation.

Look for the LLC and NCAA to get sued because the player wants to receive NIL and play ball but not be a student. I believe the argument in the multiple transfer case was partially based on the NCAA preventing a player from earning money via NIL based on their participation in sports. I THINK the courts held that to be anticompetitive.

It may also be ruled that it's anticompetitive to force someone to sign up for school when the Athletic Dept is separate.

I may have this wrong and I welcome an attorney's viewpoint.
 
#45
#45
I think there will be some ability to ensure players are enrolled at a school while working for an LLC. call it some sort of training program like a co-op required for employment. some jobs require membership in various professional organizations, or require some type of volunteer /partner program involvement. as long as the player is paid for that part of it, even some nominal fund, I don't know why it wouldn't be allowed if worded correctly.

most jobs, especially professional ones, have some standard/code/practice/rule they have to uphold that goes beyond the strict definition of the job. so I don't think some NCAA type rules and standards in regards to the field of play will be outside of the possibility for LLC run ADs.
 
#47
#47
People used to call sports talk shows in Pittsburgh in the late 1970's-early 1980's and say the Pirates hadn't paid dividends since 1960. Maybe it was a joke but possible they were on pink sheets.
Florida Panthers are publicly traded ($10.98 per share, paid 1 cent dividends in the last year). They traded at $18.99 per share June 10 2024, down to $17.50 in July right after they won the Stanley Cup.

On second thought, I'm not sure that ASM - The World's First Sports Stock Market offers genuine shares. I think it's just pretend shares.

They were publicly traded years ago:
www.bullmarketgifts.com

Florida Panthers Holdings, Inc. Stock Certificate

Florida Panthers Holdings, Inc. Stock Certificate
www.bullmarketgifts.com
 
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