The actual long term landscape is probably moving towards what Kentucky did earlier this year to run athletic departments as separate LLCs/corporations owned (or partially owned) by the university:
On Thursday, the school voted to shift the athletic department from an educational non-profit with tax exempt status, or 501(c)(3), to a for-profit limited liability company (LLC). The university’s board of regents will voted on the proposal, which will create an entity for the athletic department called Champions Blue, LLC, on Friday afternoon.
It’s a major, first-of-its-kind shift in college sports. Kentucky’s willingness to turn its athletic department into an LLC is an apt reflection of the professionalization of college sports. It also demonstrates that athletic department administrators themselves aren’t afraid to categorize their operations as full-fledged businesses.
“I wouldn’t be surprised if more athletic departments move in this direction,” Katie Davis, a CPA at James Moore and Co. who works with athletic departments nationwide, tells Front Office Sports. “Doing it now gives them a framework to adapt quickly as rules around athlete compensation and employment evolve.”