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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 4:10 pm to
Posted by Duck
Member since Dec 2006
364 posts
Posted on 8/4/26 at 4:10 pm to
Wouldn't this be beneficial from a Donor's perspective even if the expected value of the donation -- I'm sorry investment was zero.

At least the donor would get a capital loss vs. donating to an NIL collective and having zero tax benefits.

All of this is trivial until you see how the thing is priced. I seriously doubt it is priced to be an attractive investment.
Posted by turnpiketiger
Member since May 2020
12742 posts
Posted on 8/4/26 at 4:18 pm to
quote:

It’s also putting a lot of pressure on football to win but I’m here for that.


Damn right. Losing isn’t an option. Win and win now.

No more building.
Posted by LSUminati
Member since Jan 2017
4237 posts
Posted on 8/4/26 at 4:21 pm to
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.
Posted by RB10
Member since Nov 2010
54048 posts
Posted on 8/5/26 at 7:00 am to
quote:

You truly believe that LSU doesn't care about its money, don't you.


You can’t even whataboutism correctly.

My argument is LSU does care about its money, which is why they wouldn’t want to owe an investment group 10% of their earnings every year.

I know you’re stupid, but at least try and keep up.
Posted by Salviati
Member since Apr 2006
8237 posts
Posted on 8/5/26 at 7:16 am to
quote:

You can’t even whataboutism correctly.

My argument is LSU does care about its money, which is why they wouldn’t want to owe an investment group 10% of their earnings every year.

I know you’re stupid, but at least try and keep up.
:sigh:

I'll go through this slowly, so please, try to keep up.

You posted:
quote:

You truly believe these donors don’t care about their money, don’t you?
The statement suggests that donors are going to do everything in their power to maximize their profits while not killing the goose that lays the golden egg.

Do you follow so far? Let me know if you have any questions. I can circle back to bring you up to speed.

I said:
quote:

You truly believe that LSU doesn't care about its money, don't you.
Do you agree that LSU cares about its money? Of course, LSU cares about its money. Accordingly, LSU is going to do everything in its power to maximize its profits while not killing the goose that lays the golden egg.

Yet, you think that a booster entity is going to do something different than LSU which is doing everything it can to maximize its profits without killing the goose that lays the golden egg.

This is simple stuff. You should understand these concepts.

LSU needs money now. It can't take a loan from boosters. LSU's financial people would not approve this deal if they believed it didn't make sense.



To recap:

Yes, I truly believe these donors care about their money.

Yes, I truly believe that LSU cares about its money.

Thus, I don't think these donors plan to do anything different than what LSU is currently doing.
This post was edited on 8/5/26 at 7:22 am
Posted by RB10
Member since Nov 2010
54048 posts
Posted on 8/5/26 at 7:22 am to
quote:

This is simple stuff. You should understand these concepts.


It is very simple. No one, and I mean no one, is going to invest $100M for stake in LSU without expecting returns. This isn’t donating to a fund, this is investing directly.

You are laboring under the delusion that LSU boosters will give away their money with no guarantee that it will be recouped and will want no say in safeguarding their investment.

That’s stupid. End of discussion.

ETA: Hence the reason this meeting wasn’t about LSU looking to sell stake, but looking for investors for a new LLC that will be doing the investing.
This post was edited on 8/5/26 at 7:24 am
Posted by Salviati
Member since Apr 2006
8237 posts
Posted on 8/5/26 at 8:27 am to
quote:

You are laboring under the delusion that LSU boosters will give away their money with no guarantee that it will be recouped and will want no say in safeguarding their investment.
So you are laboring under the delusion that boosters never give away their money with no guarantee that it will be recouped and with no say in safeguarding their investment.


Let me introduce you to facts:



Greg and Dawn Williams (Michigan State) donated $401 million.


B. Wayne Hughes (USC) donated over $400 million.


David Booth (Kansas) donated $300 million.


Jimmy Haslam (Tennessee) donated $130 million.


Terry Pegula (Penn State) donated over $100 million.


quote:

That’s stupid. End of discussion.
Posted by KWL85
Member since Mar 2023
4072 posts
Posted on 8/5/26 at 8:40 am to
quote:

There's a $25-35 million deficit for this year. Now add another 10% of whatever the media-rights revenue is for the year to that deficit. Kelly+McMahon are being paid what this year?


You are adding on 10% without consideration that donations will increase. Some investors may increase donations or make their initial donation to get their piece of the pie.
Posted by RB10
Member since Nov 2010
54048 posts
Posted on 8/5/26 at 8:47 am to
Loudly exclaim to everyone you don’t understand the difference between donations and investments.

That definitely doesn’t make you look stupid. Good work.
Posted by pgaddxn
between here and there
Member since Jul 2008
3516 posts
Posted on 8/5/26 at 9:20 am to
Does it really matter what any of us think about this? Do we actually get a say in how they proceed?
Posted by The Pirate King
Pangu
Member since May 2014
70578 posts
Posted on 8/5/26 at 9:32 am to
Mr Clean said that this is LSU creating and controlling an LLC to invest money and fund NIL in perpetuity with the investment income and that they're waiting on IRS opinion and a valuation to proceed.

If accurate, I'm curious about the legal finagling to get this done.
Posted by Salviati
Member since Apr 2006
8237 posts
Posted on 8/5/26 at 9:35 am to
quote:


Loudly exclaim to everyone you don’t understand the difference between donations and investments.

That definitely doesn’t make you look stupid. Good work.


Loudly exclaim to everyone you don’t understand that donors don't have to be treated as investors but that treating them a little bit like investors might get them to give more.

That definitely doesn’t make you look stupid. Good work.
Posted by Salviati
Member since Apr 2006
8237 posts
Posted on 8/5/26 at 9:39 am to
quote:


Mr Clean said that this is LSU creating and controlling an LLC to invest money and fund NIL in perpetuity with the investment income and that they're waiting on IRS opinion and a valuation to proceed.

If accurate, I'm curious about the legal finagling to get this done.
I hear information to that effect also.

It would be terrific for LSU to create and control a fund to invest money and fund NIL in perpetuity.

But the biggest question is: Where does the money come from to create the fund?
Posted by RB10
Member since Nov 2010
54048 posts
Posted on 8/5/26 at 9:40 am to
quote:

Loudly exclaim to everyone you don’t understand that donors don't have to be treated as investors but that treating them a little bit like investors might get them to give more.


Wow

You really are that stupid. You’ve definitely mastered the art of yelling loudly so you think you’re correct though.

Good for you.
Posted by RB10
Member since Nov 2010
54048 posts
Posted on 8/5/26 at 9:42 am to
quote:

I hear information to that effect also.




You read it just like the rest of us.

quote:

It would be terrific for LSU to create and control a fund to invest money and fund NIL in perpetuity.


Much better than selling stake in the AD.

quote:

But the biggest question is: Where does the money come from to create the fund?


What exactly do you think the $100M investment they were seeking is now? It’s the seed fund for the LLC.

You talked about putting the pieces together earlier. Use your brain.
This post was edited on 8/5/26 at 9:45 am
Posted by Salviati
Member since Apr 2006
8237 posts
Posted on 8/5/26 at 9:47 am to
quote:

What exactly do you think the $100M investment they were seeking is now?

You talked about putting the pieces together earlier. Use your brain.
Ahhh, so now you are laboring under the delusion that LSU boosters will give away their money with no guarantee that it will be recouped and will want no say in safeguarding their investment.

Interesting flip.
Posted by RB10
Member since Nov 2010
54048 posts
Posted on 8/5/26 at 9:49 am to
quote:

Ahhh, so now you are laboring under the delusion that LSU boosters will give away their money with no guarantee that it will be recouped and will want no say in safeguarding their investment.

Interesting flip.


They would be stakeholders in the LLC and absolutely have seats at the table for financial decisions, including safeguards for their investments.

Exactly how dumb you are is becoming clear, and it’s a bit alarming.
Posted by Salviati
Member since Apr 2006
8237 posts
Posted on 8/5/26 at 9:52 am to
quote:

They would be stakeholders in the LLC and absolutely have seats at the table for financial decisions, including safeguards for their investments.

Exactly how dumb you are is becoming clear, and it’s a bit alarming.
If the fund is being used to pay NIL in perpetuity, how will it pay the "investors" their investment back?
Posted by RB10
Member since Nov 2010
54048 posts
Posted on 8/5/26 at 9:54 am to
quote:

If the fund is being used to pay NIL in perpetuity, how will it pay the "investors" their investment back?


Where does it say that all revenue is going straight to NIL? No one is going to invest for zero returns. That would be monumentally stupid, so I’m shocked to see you believe that’s what’s going to happen.

Again, use your brain.
This post was edited on 8/5/26 at 9:56 am
Posted by Salviati
Member since Apr 2006
8237 posts
Posted on 8/5/26 at 10:09 am to
quote:

Where does it say that all revenue is going straight to NIL? No one is going to invest for zero returns. That would be monumentally stupid, so I’m shocked to see you believe that’s what’s going to happen.

Again, use your brain.


Let me get this straight. You believe that a $100 million fund is going to be used to pay NIL in perpetuity AND pay back investors.

If the $100 million fund made a 10% APR, which would be damn near impossible to achieve, that would result in a $10 million return per year.

LSU's payroll is over $40 million this year. A Money Market Account pays 4% or what would be $4 million on a $100 million fund.

How is the fund going to pay $40 million in NIL and pay investors over $4 million?
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