That's interesting. I knew you didn't pull that out of a hat.
The word "Kansas" can not be protected as a word. A "Kansas" design can be protect. So that means as long as your design isn't confused with the patent holder of the design, you are okay. I'm pretty sure almost every person living in Kansas, and definitely every business owner, is in violation of using the word "Kansas"... including, to make revenue. That's like taking out a patent on "United States of America."
However, having said that... if you make a design that uses the word "Kansas" and it can easily be confused with licensed Kansas merchandise, they can come after you.
Here is an example of something out there for sale that says "Kansas". It is even in our colors. This piece approaches the line of legality because it can be confused, but it is still legal. if it said "Kansas Basketball" in our colors... I'm not sure that would fly, because it starts to resemble officially licensed university designs.
SOURCE: Cafepress ↗
I don't see how a shirt that says "kubuckets.com" on it can in any way be confused with officially licensed merchandise. It would be a tough argument to say that these shirts would dilute the shirt market for the university. If we have the right to own and use the domain name "www.kubuckets.com" then we have the right to promote the domain, especially for non-commercial use.