Latest news with #EliCapilouto
Yahoo
05-05-2025
- Politics
- Yahoo
UK canceled LBGTQ+, Black student graduations to ‘protect our people,' president says
University of Kentucky President Eli Capilouto said canceling graduation celebrations for minority students was required because 'complying with the law is the best way to protect our people.' Capilouto addressed the canceled celebrations in a video message sent to campus more than a week after the university said it would no longer host events for graduating LGBTQ+, Black and first-generation students. The move came as diversity, equity and inclusion policies and practices are being targeted at the state and federal levels. 'We have made tough decisions — decisions that in and of themselves cause concern and in some cases, hurt,' Capilouto said. 'Canceling celebrations for people on our campus who haven't always seen themselves reflected in our broader community is one example. We've taken that action because we believe that's what is required, and we believe complying with the law is the best way to protect our people and our continued capacity to support them.' Earlier this year, the Kentucky legislature passed a law banning all diversity, equity and inclusion, or DEI, practices at state colleges and universities. Universities must be in compliance with the law by June 30. Nationally, DEI has also come under scrutiny under the Trump administration. The U.S. Department of Education announced it was investigating more than 50 universities for their use of DEI, including UK. UK later said it had cut ties with the organization believed to have sparked the investigation. In the video, Capilouto said protecting and supporting students, faculty and staff 'will always be our first priority.' 'We won't be perfect. We will make mistakes, but we will always, in our hearts and in our actions, resolve to do what we can for you and all those we serve,' Capilouto said. After it was announced the UK minority graduations were canceled, students and community members rallied to offer alternate graduations. A senior salute, organized by the historically Black fraternity Alpha Phi Alpha, will take place May 7 at the Lyric Theater. Another celebration, sponsored by local businesses, took place May 2.
Forbes
28-04-2025
- Business
- Forbes
Does A Kentucky LLC Mean Private Capital Is Next For College Sports?
MILWAUKEE, WI - MARCH 21: Kentucky Wildcats center Amari Williams (22) goes up for a shot during an ... More NCAA Division I First Round Mens Basketball game between the Troy Trojans and the Kentucky Wildcats on March 21, 2025 at Fiserv Forum in Milwaukee, WI. (Photo by Larry Radloff/Icon Sportswire via Getty Images) While the attention of collegiate sports is focused on the transfer portal and the pending House settlement, a decision by the University of Kentucky's ('Kentucky') board of trustees will likely have material and cascading consequences to the industry. On Friday, Kentucky's Trustees approved the establishment of Champions Blue LLC ("Champions Blue"), an affiliate, to house the University's athletic department activities. Part of the stated reasons were governance, compensation, and revenue generation, but based on my experience in sports and private equity, and reading the President's pitch to trustees, I believe the primary goal is to be the first athletic department to receive private capital. I also believe that other institutions will soon follow a similar model, which has obvious benefits but also potential potholes. University of Kentucky President Eli Capilouto sits in the administration building on the UK campus ... More in Lexington, Kentucky, on Friday, Jan. 12, 2024. (Ryan C. Hermens/Lexington Herald-Leader/Tribune News Service via Getty Images) At Kentucky, it will be up to President Eli Capilouto to decide which intercollegiate assets and functions are transferred to Champions Blue. The entity will be wholly owned by another UK affiliate, Beyond Blue Corporation, raising questions on regulatory compliance and tax status. I'll leave that to the sports law experts in the media. Instead, I'll focus on the financial aspects, which I think are significant; while Clemson University spun its revenue generation activities into a separate entity, and the Big 12 conference and Florida State University held exploratory talks, no institution has taken private capital into its athletic department - yet. In its report to trustees, Capilouto's office emphasized incentives like governance, differentiated benefits and revenue generation. Clemson University touted the latter when it launched Clemson Ventures LLC last August. But as the report also outlined, Champions Blue will allow Kentucky athletics to 'Restructure to accept new capital and approach permanent financial stability'. To be clear, that means direct investment from private capital firms right into athletic departments. LEXINGTON, KY - JULY 29: Kroger Field (formerly Commonweath Stadium), home of the University of ... More Kentucky Wildcats football team in Lexington, Kentucky on July 29, 2019. (Photo By) Private Capital has infinite potential structures, but essentially two categories: equity, where firm-sponsored funds take a stake in a business, and debt, where they lend money with the promise of future returns. Either option provides capital to support costs and fuel growth during periods of transformation, so it's easy to see the appeal for institutions like Kentucky given the current collegiate sports atmosphere. The pending settlement between the House and the NCAA would allow schools to share portions of their revenue with athletes, estimated to reach almost $30m per year for a school like Kentucky. The NCAA would also be responsible for back pay to recent athletes of almost $2.8b, which will come from insurance, reserves and tournament distributions that schools like Kentucky regularly receive. Coach salaries (and buyouts), stadium renovations and training facilities are other examples of growing cash outlays outside of the settlement. Investing in those areas are table stakes for an institution like Kentucky that wants to compete in athletics, and that money needs to come from somewhere. Enter Private Capital. 1990: The University of Kentucky fans hold up paper cut-outs of Kentucky head coach Rick Pitino ... More during a game at Rupp Arena in Lexington, Kentucky. Mandatory Credit: Allsport USA/ALLSPORT These firms also provide business expertise and institutional governance, atypical for not-for-profit institutions. How does Kentucky allocate resources intelligently, recruit talented student-athletes, position their teams for sustained success, all while ensuring positive returns to the university that drives their mission? That's an issue Florida State likely wrestled with when they explored private equity last year. Their Athletic Director Mike Alford called it 'the future' of collegiate sports. It's a fair question. In fact, some Private Equity leaders were lukewarm to the idea when surveyed earlier this year. And Ian Charles, who I respect greatly as a pioneer and titan in sports private equity, highlighted that media rights are negotiated at the conference level, and an unstable landscape, as reasons that his firm, Arctos, wouldn't be comfortable. To Charles' point, just last week, Judge Claudia Wilken withheld her approval of the House v NCAA settlement because of concerns over roster size restrictions, and the deal is now in jeopardy. But Champions Blue was created under the presumption of a 'new era' of 'directly compensating student-athletes'. Whether it happens via this settlement or further litigation, the overwhelming presumption is that it will happen. So while the landscape is currently murky, the most beautiful lotus blooms from muddy waters (I love that quote). First, while the collegiate sports regulatory landscape isn't predictable, the revenue streams certainly are, and that's ambrosia for PE. That's thanks to locked in media rights deals that count in the billions, and a very loyal customer base. Professional sports are an appealing asset class because customers are sticky for their entire lives. But according to market research, collegiate sports fans are even more loyal, and the most loyal of all, are fans in the Southeastern Conference (SEC). Kentucky plays in the SEC. Second, private capital firms are skilled at surfacing value from undervalued assets. It's confusing that the National Basketball Association ('NBA') earns twice as much revenue as college football, with half the viewership. Other industry experts have pegged the gulf as wide as 5 to 10 times. All this despite collegiate brands, such as the Universities of Notre Dame, Southern California, Michigan and Texas, that rival professional sports. And third, an unprecedented level of private equity firms have recently raised sports-centric funds. That's led to an unprecedented level of deals (disclosure: this data is via my firm The Ledge Company). Private Equity Deals Across 10 Major Professional Leagues. Access Direct At Professional sports is a scarce resource/trophy asset, part of the reason teams are so valuable. These firms need to put their money somewhere. Now, the typical fund life ranges from 6 to 10 years, so some of those investments may hit the market again. But the market is saturated, and the LLC model that Kentucky is pursuing opens a gateway into a brand new frontier for investment. First, historically universities have wholly owned their athletic teams. An affiliate structure, complete with outside investors and a profit-seeking focus, is a seismic shift, outside their core capabilities. Perhaps relatedly, Clemson Ventures recently hired Michael Drake, a 'longtime NBA and NFL executive', as their CEO. SANTA CLARA, CA - JANUARY 07: A Clemson Tigers helmet is held up prior to the CFP National ... More Championship against the Alabama Crimson Tide presented by AT&T at Levi's Stadium on January 7, 2019 in Santa Clara, California. (Photo by) Second, accepting private capital means accepting new expectations and priorities, such as growth and return targets. Yes, in certain aspects, the interests of private capital and the University align, such as on revenue generation; both entities will want to maximize the value they drive from collegiate athletics, to retain the best student-athletes and ensure sustained success. But many athletic departments don't make a profit, so what happens if cutting certain sports will improve the bottom line? Yes, private capital can be passive, but typically that's dictated by target-side leverage, as it was with the NFL. Not every collegiate institution has that weight. Third, identifying the source of the sponsoring firm's funds, including their limited partners, can be complicated. Universities have robust processes to vet donations for regulatory compliance. For example, Section 117 of the Higher Education Act of 1965 requires semi-annual disclosures of foreign contributions that exceed $250,000 (there is proposed legislation to lower that to $50,000, and $0 from certain 'countries of concern'). How does that factor in? And who is guiding these new entities on flagging foreign funds? Yes, these are affiliates, but they, like Champions Blue, fall ultimately under the umbrella of the university. A matter for the legal experts as well. Fourth, do athletic departments and institutions at-large have the inherent pace and capability to evaluate a large potential investment? Not to belabor the point, but these are green field transactions. Institutions will have evaluated similar firms in the past for managing endowments, likely know advisors they trust, and have executives and trustees that have relatable experience. But an institutional process – a road map, often relied on for transactions – is unlikely to exist. And finally, the impact of all this on Title IX, the regulation that requires gender equitable spending from institutions that receive federal funding. Another consideration for lawyers, though some have already suggested the proposed settlement itself violates Title IX. LEXINGTON, KY - FEBRUARY 28: Cheerleaders of the Kentucky Wildcats perform on the court against the ... More Georgia Bulldogs on February 28, 2007 at Rupp Arena in Lexington, Kentucky. (Photo by) If and when the house settlement is approved, it's expected to go into effect later this year. 'Gold rush' has the word 'rush' for a reason, and it just takes one match to light the fuse. To wit, when discussing the possibility earlier this year, Michael LaSalle, a partner at Shamrock Capital, presciently said 'You have to find somebody willing to be a trailblazer'. I think that trailblazer is Kentucky.
Yahoo
05-04-2025
- Politics
- Yahoo
UK student visas revoked by Department of Homeland Security, university says
The Department of Homeland Security has revoked the visas of several University of Kentucky graduate students, campus leaders said Friday evening. The move affects 'a small number of international graduate students at UK,' President Eli Capilouto said in a news release. The number of students affected was not specified. It comes as the Trump Administration has targeted diversity, equity and inclusion efforts at colleges and universities around the country. 'We recognize the impact visa and/or status revocation has on our students,' Capilouto said. 'I know, too, that this news will surface many questions. We are working to understand changing federal policies that are impacting many college campuses and are encouraging our international students to reach out to International Student and Scholar Services with immigration-related questions or concerns.' A F-1 visa grants a student the ability to travel to the United States to study at a college or university. According to the Associated Press, students who have their visas revoked are being ordered to leave the country immediately. 'The university will always comply with the law,' Capilouto said. 'We also will make abundantly clear that our more than 1,300 international students and scholars are valued members of this special community.' When asked if UK students who had learned their visas had been revoked would be allowed to stay enrolled and how many students were affected, UK spokesperson Jay Blanton told the Herald-Leader on Friday evening he was unable to provide additional information. Other universities in the region reported similar instances of student visas at risk, including the University of Cincinnati and the University of Tennessee at Knoxville, news outlets reported. At Tennessee, four current students and one former student who was working on campus had their visas revoked. During his campaign for president, Donald Trump promised to deport foreign students involved in pro-Palestinian protests. In March, Columbia University student Mahmoud Khalil was arrested and held for deportation. It was the first publicly known arrest of Trump's crackdown on college students. Also in March, the U.S. Department of Education announced it would be investigating more than 50 universities for their diversity, equity and inclusion programs — including UK. The university later announced it had cut ties with the organization it believed sparked the investigation, The Ph.D. Project, a networking organization for doctoral students. At the time, Capilouto said there were no UK students actively engaged with the program other than attending an annual conference.
Yahoo
04-04-2025
- Politics
- Yahoo
Visas revoked from 'small number' of international students at University of Kentucky
A "small number of international graduate students" at the University of Kentucky have had their student visas or status revoked, President Eli Capilouto announced in a university-wide email obtained by The Courier Journal. It's unclear how many students are impacted by the Department of Homeland Security's action. "University officials immediately reached out to students in these circumstances to provide information and support," Capilouto said. Capilouto said the university is working to understand the changing federal policies impacting colleges around the U.S. and encouraged international students with immigration-related questions to reach out to International Student and Scholar Services. "The university will always comply with the law. We also will make abundantly clear that our more than 1,300 international students and scholars are valued members of this special community," Capilouto said. During a news conference Thursday, University of Louisville President Gerry Bradley said no international students at the institution have had their visas revoked. UofL spokesperson John Karman said the university is not aware of any changes as of Friday. Out of 24,123 total students attending UofL as of the Fall 2024 semester, 818 were international students, according to the Office of Institutional Research, Analytics and Decision Support. Last week, Secretary of State Marco Rubio said more 300 international students' visas have been affected as officials conduct reviews in search of students deemed in conflict with national interest or involved in criminal activity, USA TODAY reported. There have been several high-profile arrests in recent weeks involving international students, some of whom the Department of Homeland Security has purportedly identified as pro-Palestinian protesters or supporters of terrorist organizations. Last week, U.S. Immigration and Customs Enforcement detained Rumeysa Ozturk, a 30-year-old Turkish graduate student at Tufts University. The Department of Homeland Security cited her support for Hamas as cause for the arrest, the group that governs Gaza and has been at war with Israel, USA TODAY reported. In another highly publicized case, Mahmoud Khalil, a Columbia University student who served as a negotiator between the university and pro-Palestinian protesters during encampments last year, was arrested in March. Contact reporter Killian Baarlaer at kbaarlaer@ or @bkillian72 on X. This article originally appeared on Louisville Courier Journal: Trump administration revokes student visas at University of Kentucky
Yahoo
20-03-2025
- Politics
- Yahoo
UK ending contract with doctoral program amid DEI investigation involving 50+ colleges
LEXINGTON, Ky. (FOX 56) — The University of Kentucky will be cutting ties with the Ph.D. Project amid a federal investigation into alleged racial discrimination. UK President Eli Capilouto confirmed the decision after over 50 universities were under review amid the Trump administration's crackdown on diversity, equity, and inclusion (DEI) programs. Lexington chef competing on newest season of 'Top Chef' Capilouto said UK's involvement appeared to be limited to attending an annual networking conference, and no doctoral students were actively engaged in the program. 'In any event, we have discontinued any association with the organization, given this review and the concerns raised,' he said. 'We will be communicating this step to the Department of Education as we fully cooperate with its review.' Meanwhile, new state bills filed during the 2025 legislative session could impact the university going forward, including restrictions on DEI funding and changes to tenure policies. How to appeal FEMA decision after 2025 Kentucky floods Lexington dribbles into economic boom as NCAA Men's Basketball Tournament takes center court Students, faculty stage walkout at Berea Community High School Capilouto said UK would comply with all requirements while staying true to its mission. 'I'm confident that it will continue to guide our path as we remain focused on partnering with others to make Kentucky stronger and healthier, now and into the future,' Capilouto said. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
