New suites, Wi-Fi, entertainment district coming to Kroger Field to boost revenue
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- UK athletics approved $110M in campus projects via internal university loans.
- Renovations to Kroger Field include luxury suites, club space and public Wi-Fi.
- UK plans $31M loan to offset losses from athlete revenue sharing through 2026.
The UK athletics department expects to operate with a net loss of close to $31 million over the next two fiscal years due to the advent of revenue sharing with athletes made possible by the NCAA’s House settlement.
Its strategy for returning to a position of financial strength is to invest more money.
On Thursday, the UK Board of Trustees Athletics Committee gave approval to five capital projects that will be financed by a $110 million internal loan from the university to the athletics department. The committee also approved an additional $31 million loan to account for the expected deficit in fiscal years 2025 and 2026.
The athletics department will begin paying back the loans, with interest, in fiscal year 2028. The full Board of Trustees must give final approval to the plan at its Friday afternoon meeting.
All five of the projects involve UK’s athletics campus off Alumni Drive, including three that directly affect Kroger Field.
$15 million for regularly scheduled maintenance of Kroger Field, including concrete and masonry repairs, surface coatings installation, painting and roof maintenance.
$13 million to renovate the 40 corner luxury suites originally opened in 1999 and the elevators used to access those suites.
$5 million to renovate the softball and soccer complex in advance of UK hosting the 2026 SEC Softball Tournament.
$8 million for the design phase of a Kroger Field renovation that will include a new luxury club space in the west end zone and the addition of public Wi-Fi access throughout the stadium.
A request for information to develop a fan entertainment district on the campus that could include retail, dining, hotels and other entertainment options. The specific cost of the entertainment district will not be known until the request for information from potential designers provides answers about what exactly will be included in the project.
UK is anticipating with the added revenue from the luxury suites and new club space at Kroger Field, as well as increased distributions from the Southeastern Conference, the department, which is being transited to an LLC called Champions Blue, can once again break even with expenses and revenues in 2026-27 and operate with a $15 million surplus in 2027-28.
“These investments and the new operating model represented by Champions Blue underscore that we are embracing change and rising to the challenges posed by this dynamic landscape,” UK athletics director Mitch Barnhart said in a news release. “At a time when many are searching for answers, our administration has built on the strong partnership we have enjoyed for more than 20 years here on the UK campus. We look forward to continuing that into the future. We will remain focused on education and competition, putting championship rings on fingers and diplomas in hands.”
How Kentucky will pay for Kroger Field renovation and other projects
The formal approval of the House settlement last week will allow all schools to share up to $20.5 million in revenue with athletes starting July 1. UK plans to share the maximum amount allowed by the settlement, though $2.5 million of that total will come from an increase in scholarships. UK has thus far declined to specify how it plans to distribute the remaining $18 million by sport.
When UK announced the formation of the Champions Blue LLC in April as its strategy to adapt to the changing landscape of college sports in the wake of the House settlement, it projected the need to account for approximately $50 million more annually due to revenue sharing, inflation and other expense increases. While some schools across the country have already announced cuts to athletics department staff or sport budgets, Barnhart has been clear that UK’s goal was to avoid layoffs or cutting any non-revenue sports.
The 2025-26 athletics department budget projects keeping expenses close to the 2024-25 levels as possible, but the school has chosen not to make the type of cuts that would account for the revenue sharing expense. Instead, the university will use the $31 million internal loan to make up the difference.
UK anticipates the facility projects will eventually be financed through private funds, but the $110 million internal loan for those projects will account for the fact that the private donations may not yet be available when cash is needed for the projects.
“(The loans) will accrue with interest and be paid back,” UK associate vice president and chief communications officer Jay Blanton said. “You’ve seen other institutions talk about dollars going to athletics. This is not a subsidization, it’s a loan.”
UK has used internal loans in the past to fund other projects on campus, including two renovations to the university hospital.
The money being loaned to the athletics department does not come from state-appropriated taxpayer funds or student fees, said Eric Monday, UK’s executive vice president for finance and administration.
“We’re talking about fund balances, resources that have built up over time, that we have at the institution,” Monday said. “So it could be sales and services. It could be things that we generate in various forms.”
In addition to the internal loans, the university will separately begin supporting the athletics department by providing the difference between in-state and out-of-state tuition for athletes moving forward. That payment is budgeted at $1.6 million in 2025-26, $3.1 million in 2026-27 and $4.6 million in 2027-28.
The athletics department will continue to pay the university $3.5 million per year toward the debt service on the Don and Cathy Jacobs Science Building.
“For 22 years, we’ve stood up and given money,” Barnhart told the Herald-Leader after the committee vote. “We’ve stood up and done things that they’ve asked, been asked to do, and we wanted to do. It’s been important. Now, on the backside of that, we need a little help, and I’m thankful we’ve got an administration that wants to help us, help us do it, and recognizes how important it is.”
This story was originally published June 12, 2025 at 5:18 PM.