The Virginia Tech Board of Visitors on Tuesday agreed to affiliate with Hokie Ventures, a new nonprofit corporation aimed at helping navigate the rapidly shifting financial landscape of college athletics.
The entity is designed to boost athletic department finances through enhanced fundraising and new investments. It’s also meant to provide greater flexibility in a world driven by forces such as revenue sharing, Name, Image and Likeness platforms for athletes, and changing governance models, according to a university news release.
A CEO will be hired to oversee the nonprofit. It will be governed by an independent board that will include ex-officio university representation. The agreement has an initial four-year term with automatic renewal.
Other universities, including the University of Louisville and Michigan State University, have created separate organizations to boost athletic program finances and remain competitive in recruiting.
A $15.2 million loan to Hokie Ventures will finance initial operations as well as marketing activities. The money will be redirected from a previous $229.2 million approved by the board last August under the Invest to Win strategy.
Virginia Tech athletics not only strengthens the student experience and creates pride, said Virginia Tech President Tim Sands. It also boosts regional economic impact and increases the school’s national profile — all the more reason to be proactive.
“We must accelerate our competitive momentum and capacity to meet the challenges ahead,” he said.
Director of Athletics Whit Babcock added that “college athletics is evolving at an unprecedented pace, and Virginia Tech intends to be proactive, strategic and forward-thinking in how we position ourselves for the future.”
James Franklin, the new head football coach, said the move is an aggressive but responsible step that will benefit the football program, student athletes and the entire department.
Officials said the new structure will allow Virginia Tech to respond more quickly when it comes to corporate partnerships, sponsorships, new revenue opportunities and investment strategies. Meanwhile, the athletics department can focus on more traditional areas like coaching, compliance and competitiveness.
Hokie Ventures will be a commercial operating organization and will not change oversight of Virginia Tech athletics.
