Cash-hungry college sports programs are starting nonprofits to make money to stay competitive

University of Louisville athletic director Josh Heird acknowledges that no single solution can help his department's ongoing battle for revenue. Experts estimate that a program of Louisville's size may spend over $40 million yearly on player acquisition, revenue sharing, and other costs. In this highly competitive environment, only football and men's basketball at Louisville generate any revenue.

The university, like many public institutions, is creating a nonprofit called Cardinal Ventures to explore new revenue streams and maintain competitiveness in the multibillion-dollar market surrounding athlete compensation. Other major universities, such as Kentucky, North Carolina, and Louisiana State, are also launching similar initiatives.

However, there is concern from Congress about the potential shift from public universities to profit-driven entities. Louisville's Heird frequently discusses these new organizations with his peers as they all strive to enhance their bottom lines. Even though these efforts may not offer a "silver bullet," they provide additional revenue and greater control, which is highly valued by athletic directors.