re: Can LSU's Dreams Come True? What If LSU Big Donors Contribute $100 Million for 10% Income?

People are focused on the media rights but there are other monetizable assets LSU could grant rights to, and this is how the state is involved. The state could set up special economic development districts that essentially LSU is the municipality in control - they already are trying this with the arena. The risk/theory is that these districts will develop and grow part and parcel with the success of LSU athletics (see, e.g., Tuscaloosa). LSU would then be the beneficiary of the tax revenues generated by these economic zones (think, hotels, restaurants, condos, etc.). In order to make this a reality, LSU is going to investors today and saying "hey, invest in our fund today in exchange for a right to some of these future revenues." - again this includes the tax revenue, media rights, and whatever else LSU wants to grant a financial interest to. The "bet" is that by getting the money today it makes all of the foregoing more likely because LSU will acquire talent at an unprecedented level. It's a big bet.

But to others' points, this theory would not be the scary Private Equity situation. This type of fund LSU would set up is "blind pool" meaning investors simply have a financial interest, but no rights to control the actions or decisions of LSU.