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LSU football if sold on open market would probably go for $1.5-3 billion

Posted on 4/20/24 at 5:53 am
Posted by Saunson69
Member since May 2023
1802 posts
Posted on 4/20/24 at 5:53 am
Just a little extrapolation. Profit from football was $55 mil last year. Normal P/E ratios one could expect I believe from a sports franchise or a number of stocks is 20-60x. The Pelicans made the exact same amount last year at operating income of $57 mil and are valued at $2.5 bil That'd mean LSU football would go for anywhere from $1.5 to $3.0 bil in my opinion.

In addition, there's no remaining capex really with stadium complete. No debt. I doubt they're paying fed and state tax at a public uni sport, so that'd go in effect if taken private.

Btw, this would be around 3-6x what LSU's total endowment at $625 mil.
This post was edited on 4/20/24 at 6:32 am
Posted by waiting4saturday
Covington, LA
Member since Sep 2005
9718 posts
Posted on 4/20/24 at 6:09 am to
I'm going to call Gale Benson and see if she's interested.
Posted by Xenophon
Aspen
Member since Feb 2006
40879 posts
Posted on 4/20/24 at 6:23 am to
I’d think it would be much higher honestly.
Posted by Saunson69
Member since May 2023
1802 posts
Posted on 4/20/24 at 6:32 am to
You're right. I adjusted it because after looking at Pelicans operating income, it was the same as LSU football. They're valued at $2.5 bil after searches online.
Posted by Hamma1122
Member since Sep 2016
19818 posts
Posted on 4/20/24 at 6:34 am to
Way higher
Posted by jeffsdad
Member since Mar 2007
21408 posts
Posted on 4/20/24 at 6:41 am to
That's an expensive football.
Posted by Recoveringcajun
Banjo country
Member since Aug 2022
886 posts
Posted on 4/20/24 at 7:52 am to
CSB.
Posted by Covingtontiger77
Member since Dec 2015
10231 posts
Posted on 4/20/24 at 8:05 am to
I’m a buyer at $3.50
Posted by clamdip
Rocky Mountain High
Member since Sep 2004
17877 posts
Posted on 4/20/24 at 8:10 am to
It's crazy, the valuation of sports franchises, especially the NFL. The Falcons were bought by Arthur Blank around 25 years ago for about a half billion and everyone thought he overpaid. They're worth about $7B now.
This post was edited on 4/23/24 at 10:12 pm
Posted by Alt26
Member since Mar 2010
28335 posts
Posted on 4/20/24 at 8:46 am to
It’s a great business model for an owner when you don’t have to pay market value for most of the employees.

Jayden Daniels probably made a few million in endorsements last season. LSU probably paid him a “salary” of less than $500k. In a free market he likely would have commanded $10M - $20M in “salary”
Posted by Ponchy Tiger
Ponchatoula
Member since Aug 2004
45109 posts
Posted on 4/20/24 at 9:00 am to
quote:

Jayden Daniels probably made a few million in endorsements last season. LSU probably paid him a “salary” of less than $500k. In a free market he likely would have commanded $10M - $20M in “salary”


are retroactively paying players? Because no way you pay Jayden that before last season.
Posted by Tiger1988
Houston
Member since May 2016
24328 posts
Posted on 4/20/24 at 9:05 am to
quote:

are retroactively paying players? Because no way you pay Jayden that before last season.

Exactly
Posted by moneyg
Member since Jun 2006
56463 posts
Posted on 4/20/24 at 9:10 am to
quote:

are retroactively paying players? Because no way you pay Jayden that before last season.


He also was free to be in the NFL.

And of course, he never was forced to play football at all.
Posted by tigerbait2010
PNW
Member since May 2006
29186 posts
Posted on 4/20/24 at 10:47 am to
Is it really that outrageous to have raising cane’s buy the program in 20 years the way all of this bullshite is going?
Posted by JodyPlauche
Baton Rouge
Member since Aug 2009
8772 posts
Posted on 4/20/24 at 12:32 pm to
Imagine being Todd Graves...you could buy LSU Football for $3 Billion and still have $4.6 Billion left.
Posted by TackySweater
Member since Dec 2020
11798 posts
Posted on 4/20/24 at 12:46 pm to
Is there anything different Pels vs lsu, pro vs college that would change anything?
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