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

Posted on 8/5/26 at 10:12 am to
Posted by RB10
Member since Nov 2010
52638 posts
Posted on 8/5/26 at 10:12 am to
quote:

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?


Do you think this is meant to pay for the entire war chest, or to help the donors who are providing the supplemental portion that is currently being paid in addition to revenue sharing and the NIL portion?

I’d ask you to use your brain again, but clearly it’s not going to happen.

ETA: Do you believe that boosters are footing a $40M bill for the roster each year? You do, don’t you?
This post was edited on 8/5/26 at 10:16 am
Posted by dljtigers
Sulphur, LA
Member since Feb 2012
2151 posts
Posted on 8/5/26 at 10:18 am to
One thing for sure is change is going to come. Don’t see the money invested in CFB can continue without selling advertising. Teams with success in next few years should be ok but those that take a dive are going to find it hard to keep paying the $ needed.
Posted by dljtigers
Sulphur, LA
Member since Feb 2012
2151 posts
Posted on 8/5/26 at 10:19 am to
One thing for sure is change is going to come. Don’t see the money invested in CFB can continue without selling advertising. Teams with success in next few years should be ok but those that take a dive are going to find it hard to keep paying the $ needed.
Posted by doubleb
Baton Rouge
Member since Aug 2006
43033 posts
Posted on 8/5/26 at 10:23 am to
quote:

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.


LSU pays revenue share, not NIL.

The 100 million is to cover the reported 25-35 million shortfall, right.

That leaves just 65-75 million to invest.
Posted by Salviati
Member since Apr 2006
7954 posts
Posted on 8/5/26 at 10:28 am to
quote:

Do you think this is meant to pay for the entire war chest, or to help the donors who are providing the supplemental portion that is currently being paid in addition to revenue sharing and the NIL portion?
So what you believe is that fund is basically to pay for one QB each year?

Does that make sense to you? To create a $100 million fund to pay for one QB each year?

quote:

Do you believe that boosters are footing a $40M bill for the roster each year? You do, don’t you?
You do this a lot.

You change the subject. It's like talking with a woman. You continually change the subject.

The revenue share of ~$21 comes from AD coffers. That money could be used to pay other expenses or make other investments. The remainder comes from various sources including actual NIL. But the problem is finding the various sources and actual NIL each year. LSU would love to find a single source for all player payroll.

So going back to the original statement.

Do you believe that a $100 million fund is going to be used to pay NIL in perpetuity AND pay back investors.

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

Or do you believe that the $100 million fund is basically to pay for one QB each year?
Posted by Salviati
Member since Apr 2006
7954 posts
Posted on 8/5/26 at 10:32 am to
quote:

LSU pays revenue share, not NIL.
Yes. That is correct.

But it's also true that people commonly use NIL, revenue share, payroll, and pay for play interchangeably even though it technically incorrect.
Posted by The Pirate King
Pangu
Member since May 2014
69634 posts
Posted on 8/5/26 at 10:33 am to
quote:

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

I watched his interview with one of the boosters and it didn't sound like the booster knew (maybe an external fund?) It should give people pause that a big Michigan State booster/fan is going to be heavily involved and sit on the board (even if outnumbered). Matt asked the question about what the Michigan State guy gets out of this and he didn't have much of an answer.

IF the Michigan State guy is getting a board seat, he's clearly going to have some stake in this, whether he's providing the seed money or managing the fund himself, which I'd imagine he wouldn't do for free.

I'm also tempted to say the PE fund story was planted in order to make this plan seem rosier by comparison.
Posted by RB10
Member since Nov 2010
52638 posts
Posted on 8/5/26 at 10:34 am to
quote:

So what you believe is that fund is basically to pay for one QB each year?

Does that make sense to you? To create a $100 million fund to pay for one QB each year?


This isn’t a one year outlook scooter.

quote:

You do this a lot.

You change the subject. It's like talking with a woman. You continually change the subject.


I didn’t change the subject. You brought up this fund having to cover $40M each year. It’s not having to cover anything close to that.

quote:

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


LSU’s entire roster eval is $40M, not the NIL portion. For the last time, this fund is not meant to pay for the entire roster, it’s meant to help cover the NIL portion.
This post was edited on 8/5/26 at 10:36 am
Posted by RB10
Member since Nov 2010
52638 posts
Posted on 8/5/26 at 10:36 am to
quote:

IF the Michigan State guy is getting a board seat, he's clearly going to have some stake in this, whether he's providing the seed money or managing the fund himself, which I'd imagine he wouldn't do for free.


Nah bro

Genius Salvatore says these guys are just giving LSU money with no ROI expectations.
Posted by Salviati
Member since Apr 2006
7954 posts
Posted on 8/5/26 at 10:45 am to
quote:

quote:

So what you believe is that fund is basically to pay for one QB each year?
This isn’t a one year outlook scooter.
It's Salviati, not scooter.

You do understand that "each year" does not mean "one year," correct? You understand that right? So when I say pay for one QB each year, I'm not talking about one year' I'm talking about each subsequent year. Please let me know if English is not your first language.
quote:

LSU’s entire roster eval is $40M, not the NIL portion. For the last time, this fund is not meant to pay for the entire roster, it’s meant to help cover the NIL portion.
But you don't know how much that is?
This post was edited on 8/5/26 at 10:46 am
Posted by RB10
Member since Nov 2010
52638 posts
Posted on 8/5/26 at 10:46 am to
quote:

You do understand that "each year" does not mean "one year," correct? You understand that right? So when I say pay for one QB each year, I'm not talking about one year' I'm talking about each subsequent year. Please let me know if English is not your first language.


You do understand that this fund will grow in value, correct?

quote:

But you don't know how much that is?


I know for an absolute fact that it is not $40M.
Posted by doubleb
Baton Rouge
Member since Aug 2006
43033 posts
Posted on 8/5/26 at 10:48 am to
quote:

But it's also true that people commonly use NIL, revenue share, payroll, and pay for play interchangeably even though it technically incorrect.


There are big differences and the more they use incorrect terms the more a lot of people do no understand what’s is going on.
Posted by Salviati
Member since Apr 2006
7954 posts
Posted on 8/5/26 at 10:48 am to
quote:

Genius Salvatore says these guys are just giving LSU money with no ROI expectations.
It's Salviati, not Salvatore. Is it a vision problem, a reading problem, or a comprehension problem. I'm willing to help where I can.

quote:

Genius Salvatore says these guys are just giving LSU money with no ROI expectations.
Again, people have given hundreds of millions of dollars to schools with no ROI expectations.

I can post the pictures again if that will help.
Posted by The Pirate King
Pangu
Member since May 2014
69634 posts
Posted on 8/5/26 at 10:48 am to
quote:

Nah bro Genius Salvatore says these guys are just giving LSU money with no ROI expectations.


It'll be interesting to see what the truth of all this is. Some things aren't adding up with the limited information we have. It seems like it was made very clear to the boosters that they weren't being asked to fund this venture and that these meetings are purely informational... meaning the money is either coming from TAF, a very small donor pool, or an external fund. There's a projected $25-35 million deficit coming this year, so I highly doubt that the money is coming from LSU athletics.
Posted by Salviati
Member since Apr 2006
7954 posts
Posted on 8/5/26 at 10:50 am to
quote:

You do understand that this fund will grow in value, correct?
Well, it won't grow organically if the return is being used to pay players and investors. You do understand that, correct?

quote:

I know for an absolute fact that it is not $40M.
That's great. You know what it's not. I know that too.

Do you know what it is?
This post was edited on 8/5/26 at 10:53 am
Posted by Salviati
Member since Apr 2006
7954 posts
Posted on 8/5/26 at 10:52 am to
quote:

There are big differences and the more they use incorrect terms the more a lot of people do no understand what’s is going on.
I agree. I will try to tighten up on my usage.
Posted by RB10
Member since Nov 2010
52638 posts
Posted on 8/5/26 at 10:53 am to
quote:

Well, it won't grow organically if the return is being used to pay players and investors. You do understand that, correct?


What I understand that you clearly don’t is that this isn’t meant to pay players. It’s meant to help the NIL collective donors cover their expenses.

I thought you’d eventually stumble into that.

quote:

That's great. You know what it’s' not. I know that too.


You obviously don’t. You keep saying it has to cover $40M each year
Posted by RB10
Member since Nov 2010
52638 posts
Posted on 8/5/26 at 10:55 am to
quote:

Again, people have given hundreds of millions of dollars to schools with no ROI expectations.

I can post the pictures again if that will help.


I don’t need you to keep repeating that you don’t understand the difference between donations and investments.

Thanks though.
Posted by RB10
Member since Nov 2010
52638 posts
Posted on 8/5/26 at 10:57 am to
quote:

It'll be interesting to see what the truth of all this is. Some things aren't adding up with the limited information we have. It seems like it was made very clear to the boosters that they weren't being asked to fund this venture and that these meetings are purely informational... meaning the money is either coming from TAF, a very small donor pool, or an external fund. There's a projected $25-35 million deficit coming this year, so I highly doubt that the money is coming from LSU athletics.


I think it was to let the big dogs know that this fund is being looked at as an alternative to traditional booster donations and that $100M is the seed amount needed.

They’re being offered the ability to buy stake later if it gets done.
This post was edited on 8/5/26 at 11:06 am
Posted by RB10
Member since Nov 2010
52638 posts
Posted on 8/5/26 at 10:58 am to
quote:

It's Salviati, not Salvatore.


Sorry samsonite.
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