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re: Can LSU's Dreams Come True? What If LSU Big Donors Contribute $100 Million for 10% Income?
Posted on 8/4/26 at 9:26 am to idlewatcher
Posted on 8/4/26 at 9:26 am to idlewatcher
HMMMM....does that mean I can go get a 100K loan from my bank on a paid off mortgage. Give the 100k to this entity, and get paid 10k per year interest on my investment in the fund and pay off my mortgage, and have a bit left over? I assume a bunch of perks go with that , like really good season ticket seats in the stadium for football, basketball and baseball.
Where do I sign up?
Where do I sign up?
2
Posted on 8/4/26 at 9:30 am to QB
quote:
Where do I sign up?
You would get your relative % of 10%.
So if you donated 100k of 200 mil in total donations, youd get that fraction of a % not of 200 mil, but what im assuming is 10% of nothing after title ix sends that crap to every other sport
Posted on 8/4/26 at 9:30 am to QB
If we simplify for the sake of argument the "media rights" as being the SEC distributed moneys, then that most recent figure was $72M per school.
That means if that goes up to, say, $95M over the few years, this $100M investment would be drawing $9.5M for the investors, per year.
And they also get some serious access perks as well. Pretty sweet deal. At least LSU has the option to buy these investors out in 5 years.
That means if that goes up to, say, $95M over the few years, this $100M investment would be drawing $9.5M for the investors, per year.
And they also get some serious access perks as well. Pretty sweet deal. At least LSU has the option to buy these investors out in 5 years.
This post was edited on 8/4/26 at 9:31 am
Posted on 8/4/26 at 9:33 am to Tiger Prawn
quote:It's 'not that cut and dry. There are many thing that can happen where it doesn't go down as you lay it out.
The problem is that the $100 million is a one time cash infusion for LSU, while giving up 10% of income in perpetuity. So after LSU burns through that $100 million by going all-in on chasing titles in the short term, then we're disadvantaging ourselves in the long term by having to continually give up 10% to the "big donors" aka investors.
In 10 years when that original $100 million is gone and we're still wanting to compete for championships, is LSU going to try to sell off another 10% equity stake for another cash infusion from "big donors"?
Posted on 8/4/26 at 9:34 am to clamdip
quote:
That means if that goes up to, say, $95M over the few years, this $100M investment would be drawing $9.5M for the investors, per year.
And they also get some serious access perks as well. Pretty sweet deal. At least LSU has the option to buy these investors out in 5 years.
So now you understand why PE firms exist. Now it’s time to learn what happens to the entity that’s paying out $9.5M of its profits to said PE firm every year.
Posted on 8/4/26 at 9:37 am to Salviati
quote:
What if LSU's Big Donors were willing to contribute the necessary money but wanted a little return on their money in return for their contribution? What if those donors only wanted a small minority share of a commercial joint venture with LSU that pools commercial operations like ticketing, licensing, sponsorships, and NIL sales into a separate for-profit entity?
quote:
What if LSU keeps full operational and athletic control? This control includes all decisions including AD staffs, coaching staffs, and student-athletes.
These two statements are mutually exclusive. See Jerry Jones...
Posted on 8/4/26 at 9:40 am to The Pirate King
quote:No. You're wrong.
You contradicted yourself in back to back sentences. Quite a feat.
There are some things we know. We know the venture is comprised of LSU people. We know these are the same people who have donated to LSU in the past or who LSU has asked to donate in the past. We know that some of these people already have power or input into LSU. We know that each of these individuals can donate at least $100k.
We know that these donors cannot simply loan money to LSU. We know that LSU needs an infusion of cash without violating Louisiana law.
We know the general size of the fund is approximately $100 million. We know the deal contemplates giving the venture a small minority interest in LSU's future revenue stream.
We don't know all of the terms of the deal. We don't know the exact size of the minority interest in LSU's future revenue.
We know that the deal contemplates LSU keeping full operational and athletic control, including all decisions involving AD staffs, coaching staffs, and student-athletes. We don't know the extent of influence, if any, the deal contemplates giving the venture as to optimizing commercial and revenue-generating operations, such as ticketing, licensing, sponsorships, and NIL sales.
Posted on 8/4/26 at 9:41 am to Salviati
ok, if big time donors now get a piece of LSU athletics for their donations. Why would they give to LSU in the future without getting more equity ever again?
Posted on 8/4/26 at 9:42 am to GetmorewithLes
quote:
These two statements are mutually exclusive. See Jerry Jones...
Nah man
The donors are going to continue to give millions even though they will lose their write off ability on it, because LSU says they will pay them back, plus a little on top.
Oh yeah, they’re also going to do this without demanding any sort of financial control, meaning they have no guarantees they ever see a ROI. Hell, they may not even get their money back, but that’s ok.
You know, because they love LSU and don’t care about their money.
Posted on 8/4/26 at 9:43 am to clamdip
quote:You are absolutely correct.
It's 10% of future media rights revenue. That's very different from income.
Posted on 8/4/26 at 9:43 am to Salviati
quote:
I expect revenues to increase more than expenses.
The expenses will increase the same, just like they have historically. The Athletic Department has never turned a big profit. It never will. As the revenue increases, the expenses will increase as a very similar rate.
This post was edited on 8/4/26 at 9:44 am
Posted on 8/4/26 at 9:45 am to Salviati
You can't say with certainty that the deal "isn't as bad as it seems" without ALL the terms of said deal 
Everything could look great until you find out something like, they get a voting share or "influence" on what happens in the department (this is an example, not saying this will happen).
Everything could look great until you find out something like, they get a voting share or "influence" on what happens in the department (this is an example, not saying this will happen).
Posted on 8/4/26 at 9:45 am to Ebridg3
quote:The money made from media rights dwarfs everything you mentioned.
Interested to know how you see them increasing revenue.
Games sell out already
Concessions are already ridiculous
Parking has already been ruined
Football is becoming less popular among college age students as a whole.
Make no mistake about it... youre conflating winning with making more money without identifying actual mechanisms that make more money.
Posted on 8/4/26 at 9:50 am to Salviati
quote:
We know that the deal contemplates LSU keeping full operational and athletic control, including all decisions involving AD staffs, coaching staffs, and student-athletes.
Posted on 8/4/26 at 10:10 am to BrianKellysbuyout
quote:
That's how companies put themselves into financial distress.
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