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Sunk cost and Matt McMahon….

Posted on 3/17/26 at 4:37 pm
Posted by TJG210
New Orleans
Member since Aug 2006
29362 posts
Posted on 3/17/26 at 4:37 pm
I truly don’t understand how you can approach this mess with a notion of Sunk cost


If a f500 ceo was running a company into the ground, would the board just sit idly by bc it costs a pile to can him?
Posted by kjp811
Denver, CO
Member since Apr 2017
1102 posts
Posted on 3/17/26 at 4:51 pm to
Does that CEO have a buyout clause?
Posted by Circle K Beggar
Somewhere in the lower 48
Member since Feb 2011
8520 posts
Posted on 3/17/26 at 4:53 pm to
quote:

If a f500 ceo was running a company into the ground, would the board just sit idly by bc it costs a pile to can him?


That’s the thing. Companies look to make money, so a change would be made.

Every other D-1 basketball program plays to win, so a change would be made.

LSU basketball plays for fun only. Therefore, no change made.
Posted by TJG210
New Orleans
Member since Aug 2006
29362 posts
Posted on 3/17/26 at 5:15 pm to
quote:

Does that CEO have a buyout clause?


Many don’t leave for free
Posted by atltiger6487
Member since May 2011
20040 posts
Posted on 3/17/26 at 5:59 pm to
quote:

Does that CEO have a buyout clause?
CEOs are fired all the time, and often have golden parachutes.

That's rarely a reason to keep an underperforming guy in the job. Get rid of him and hire a better guy. Short term, you might take a financial hit, but long term, you’ll come out way ahead.
Posted by Madking
Member since Apr 2016
68978 posts
Posted on 3/17/26 at 6:10 pm to
The amount of money it will cost if we keep him is beyond firing him by orders of magnitude.
Posted by Sissidog02
Member since Jan 2020
7175 posts
Posted on 3/17/26 at 6:31 pm to
So fugn what? Why keep this guy, he’s had 4 yrs and hasn’t even come close to winning anything. Are you kidding me, not one swinging dk on this board is paying to keep him, fire him, or gave up any $$ to the MBB in his four yrs. He sucks, we suck as a program, it’s embarrassing to watch at least for the few that are watching. If we go one more year with McCantWin it shows that LSUs Admin gives not an absolute fk about MBB. To argue to save money by keeping him is one thing but to honestly believe he’s the right Coach for LSU is insane. MBB is the ONLY other money making sport in college sports. Most people on here don’t give anything $wise to make a difference in this situation that faces us. It doesn’t matter if you like Baseball more than MBB, I want LSU to WIN in everything. We don’t know on here who wants to give or doesn’t but if I had the money there’s no way I’d give to this shtshow in the PMAC. If the people that are in charge and have the cabbage to give to MBB will give. But there’s no way anyone with any $$$ would give more again to this program for the same results is retarded. They wouldn’t have the money to start with. How can we do any worse. If the Administration has given up then just say it but don’t piss on the fans leg and tell it’s raining. Either pull the plug or pull the plug it’s already in the toilet anyway.
Posted by Rudy40
Baton Rouge,La
Member since Jan 2007
3297 posts
Posted on 3/17/26 at 6:33 pm to
Correct Madking the attendance increase for home games alone just by hiring a coach with a an actual pulse who will go out and promote the program and raise funds will offset buyout easily.
This post was edited on 3/17/26 at 6:37 pm
Posted by Madking
Member since Apr 2016
68978 posts
Posted on 3/17/26 at 6:39 pm to
When we changed coaches after Jones we simultaneously had a huge operating cost drop as well as huge ticket sales increase. These people have no idea what they’re talking about.
Posted by tigahlovah
virginia beach, va
Member since Oct 2009
4838 posts
Posted on 3/17/26 at 6:59 pm to
They've all got a buyout homie. And it's typically several times bigger than Bk's.
Posted by GetmorewithLes
UK Basketball Fan
Member since Jan 2011
22703 posts
Posted on 3/17/26 at 7:10 pm to
quote:

I truly don’t understand how you can approach this mess with a notion of Sunk cost


If a f500 ceo was running a company into the ground, would the board just sit idly by bc it costs a pile to can him?


Alright, you are making it a business decision. I am asking how much more money do you think LSU makes from a winning program versus a losing program? I dont know the answer but I am sure there are a lot of opinions out there to discuss.

The reason I bring this up is LSU makes 75-80% of athletic revenue off of FB and about 15-20% off basketball. Everything else breaks even or loses money. So with revenue sharing a losing team will get most of what we would get with a winner. I believe baseball is in the black but for most schools it is not.

So my point is that you choose to put your wallet where you think you can be or want to be competitive.
Posted by tigahlovah
virginia beach, va
Member since Oct 2009
4838 posts
Posted on 3/17/26 at 7:14 pm to
Baseball is not consistently in the black.

If we hire Wade, our basketball profit would at least triple, very quickly.
Posted by Rudy40
Baton Rouge,La
Member since Jan 2007
3297 posts
Posted on 3/17/26 at 7:16 pm to
Yep I believe LSU made almost 2 million in basketball last year with a corpse coaching and Bama for example made 9 million. Bring Wade back and that 7 million per year increase covers everything.
Posted by Madking
Member since Apr 2016
68978 posts
Posted on 3/17/26 at 7:19 pm to
Hard to calculate just how much improving will profit the program exactly but it will jump up a lot compared to what we’ve seen over the last 4 years. In terms of getting to the NCAA tourney, SEC teams pulled in $70 million for the conference last tourney. Each game is worth a unit which is $2 million paid out over 6 years and as you climb your units increase in value. We’re leaving a lot on the table losing the way we are.
Posted by sabanisarustedspoke
Member since Jan 2007
5832 posts
Posted on 3/17/26 at 7:29 pm to
Only in Government. Pref. Federal...
Posted by JR Hamilsbach
Member since Oct 2010
912 posts
Posted on 3/17/26 at 7:57 pm to
quote:

Bama for example made 9 million.


They grossed 24 million and netted 9 million just to be explicitly clear opportunity cost of sucking again next year.
Posted by Rudy40
Baton Rouge,La
Member since Jan 2007
3297 posts
Posted on 3/17/26 at 8:01 pm to
I agree it may not be 9 depending on the hire but if it's Wade they could hit 9 and I think a good coach with enthusiasm and a pulse could at least hit 6 or 7 which would still be a huge increase over Mcloses 2 million.
Posted by LSBoosie
Member since Jun 2020
18330 posts
Posted on 3/17/26 at 8:03 pm to
This thought sounds good until you actually think about it logically. CEO’s get fired by the board because they are losing them money. LSU boosters don’t make money off of LSU basketball. It’s not like boosters get to split the profit that LSU basketball gets for being good.
Posted by JR Hamilsbach
Member since Oct 2010
912 posts
Posted on 3/17/26 at 8:03 pm to
LSU basketball grossed 12.5 million and netted 2.5 million. LSU baseball grossed 8.4 million and netted negative 900k. LSU baseball elevates LSU brand of athletic excellence. LSU basketball punching welfare checks where they could be profiting much more and embarrassing the university much less is leaving money on the table and is undermining the LSU brand.
Posted by tygerphan
Georgia
Member since Oct 2009
4059 posts
Posted on 3/17/26 at 8:06 pm to
It's not about sunk costs - it's that LSU athletics is currently facing a $25-$35 million deficit. That more than doubles if they fire McMahon and his staff and hire their replacements this year.

LSU bet on the near-term return of firing Kelly - which is a much easier bet/risk to defend given how much more revenue football generates than any other sport, plus the historical evidence of previous success/championships in football.

Making a similar bet with men's basketball just doesn't make financial sense. Doesn't mean they won't do it - and I hope they can find a way to make it happen. But it would be, by all accounts, a terrible business decision right now.
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