UK Athletic Department/ Champions Blue LLC

LINK

quote:

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SPECIFIC ACTIONS:

To benefit and further the University’s educational mission concerning intercollegiate
athletics, the Board of Trustees of the University of Kentucky takes the following actions:


1. Instructs the President to direct the Board of Directors of Beyond Blue Corporation,
an affiliated corporation of the University, to take whatever steps are necessary to
establish Champions Blue, LLC as a single member limited liability corporation and
disregarded entity for federal income tax purposes. The purpose of Champions
Blue, LLC will be to manage and coordinate the University’s educational mission
concerning intercollegiate athletics. Champions Blue, LLC will be a wholly owned
subsidiary of Beyond Blue Corporation.


2. Exercises its powers under K.R.S. § 164A.610 and designates Champions Blue,
LLC as an affiliated corporation of the University to assist the University in carrying
out its programs, missions or other functions. As such, Champions Blue, LLC is an
alter ego of the University of Kentucky as of the date of its creation. Consistent
with Kentucky law, Champions Blue, LLC has the same immunity as the University
itself and is subject to the state and federal constitutions as well as those statutes
applicable to the University.


3. Instructs the President to make a recommendation to the University of Kentucky
Board of Trustees concerning individuals for the University of Kentucky Board of
Trustees to appoint to the Board of Directors of Champions Blue, LLC. In making
his recommendation, the President shall insure those senior administrators, who
shall serve by virtue of their office, are a majority of the Board of Directors of
Champions Blue, LLC. The President shall also recommend outside directors with
sufficient expertise to aid Champions Blue, LLC in its mission to manage and
coordinate the University’s educational mission concerning intercollegiate
athletics. Should any of the University of Kentucky senior administrators leave their
position, they will no longer serve on the Board of Directors of Champions Blue,
LLC and their successor in their senior administrative position will be appointed to
the Board of Directors of Champions Blue, LLC without further action by the
University of Kentucky Board of Trustees. Otherwise, all individuals will serve at
the pleasure of the University of Kentucky Board of Trustees and can be removed
at any time for any reason.


4. Directs the President to decide what functions and assets in the Department of
Intercollegiate Athletics should be transferred to Champions Blue, LLC and further
directs the President to carry out that transfer whenever practical. To the extent
that a transfer of functions involves an employee, the President shall take steps to
minimize disruption to the employee’s compensation and benefits.


5. Instructs the President to direct the members of his Cabinet to ensure Champions
Blue LLC follows all state and federal constitutional provisions, laws, and
regulations applicable to the University of Kentucky and/or public entities.


6. Declares that any future employees of Champions Blue, LLC are public
employees. However, unless otherwise named by the President, any future
employees of Champions Blue, LLC are not employees of the University of
Kentucky. Rather, any future employees of Champions Blue, LLC are employees
of an affiliated corporation of the University of Kentucky.


7. Declares that any future employees of Champions Blue, LLC who are involved in
furnishing health care within the scope of their duties are agents of the University
of Kentucky for purposes of University of Kentucky Medical Center Malpractice
Insurance Act, KRS §§ 164.939, et seq.

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How is it legal, for a public university to create a private subsidiary of themselves for commerce but then claim to hold immunity? Not only that, but they can also pay players but not be required to provide employment benefits.

If you contract with a person, you have to hire them, or they have to be subcontracted as an LLC. You can't just willy nilly give money to people for work and then say I'm immune from suit if you get hurt?

This sounds like they're trying to have their cake and eat it too.