LSU wants cash now and the bill later. That’s where things get dangerous.
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Look, I have no idea what LSU is doing. Frankly, I’m not sure LSU has any idea what LSU is doing.
But this is where we are with college sports, and the never-ending chase for cash. So why not push all the way to the ledge, and then try something really freaky?
Not only drastically different, but downright dangerous.
Best I can tell, LSU is contemplating trading future media rights money for cash up front. They call it investing in the LSU sports program, and I don’t know if it’s a shady Ponzi scheme — or a brilliant gamble of the cosmically educated.
One thing they’re not calling it: private equity.
The heaviest hitters in the state were part of a invite-only event earlier this week, an informal meet hosted by Gov. Jeff Landry at the governor’s mansion. NOLA.com reported the meeting outlined a potential creation of an LSU-controlled LLC to generate revenue through targeted investments.
If you’re already confused, well, you should be. If it’s too good to be true, it probably is.
We’re talking about a state university — which receives federal tax dollars — mortgaging its future with a plan as old as time. You give me money now, I’ll pay you back later with interest.
LSU is banking on the strength of the SEC and the financial potential of its future media rights deals, and the school’s ability to hire the right coaches and be among the best programs in the revenue-driving sports of football, men’s basketball and baseball to make it all work.
The idea is to house media rights in a separate entity controlled by the university. LSU would control 80% of the new entity, and the remaining 20% would be sold to investors.
But if it walks like private equity, and talks like private equity, LSU is going to have to do a masterful spin job to make this thing work. LSU is a public university, so it can’t sell shares for purchase.
But wait, here’s where it gets really funky.
The new entity would collect revenue from investors, and the entity would then give LSU that cash collected in exchange for the right to receive payouts from future media rights distributions.
So technically, the investors don’t own a piece of LSU’s media rights pie from the SEC (through partner ABC/ESPN), the fund itself — which the investors have paid into — is entitled to a percentage of the media rights revenue. The fund then pays back the investors.
The overriding problem (beyond the aforementioned fiscal machinations): LSU has proven over the past few years it’s not the most fiscally prudent of sports programs when it comes to hiring and firing coaches, and spending on student athletes.
LSU fired former football coach Brian Kelly in the middle of last season, and paid him $53 million to not coach. It fired basketball coach Matt McMahon at the end of last season, and paid him $8 million to not coach.
It got into a bidding war with Florida, and signed new football coach Lane Kiffin to a $91 million deal. Kiffin then gave defensive coordinator Blake Baker a $9.3 million deal, and offensive coordinator Charlie Weis Jr. a $7.5 million deal.
LSU’s 2026 roster is reportedly worth more than $45 million, from both internal NIL (revenue sharing) and private NIL deals.
New men’s basketball coach Will Wade signed a $30 million deal this offseason, women’s basketball coach Kim Mulkey has a $36 million contract through 2033, and baseball coach Jay Johnson has a $23 million contract through 2032.
That’s a boatload of cash out the door for a football coach who has never won a Power conference championship, and a men’s basketball coach who was fired by LSU not long ago for running afoul of NCAA laws. Or the two marquee, revenue-producing sports.
And now LSU has decided to throw private equity on top of the fiscally reckless heap, though it’s not technically private equity. It’s “donations” from boosters for the right to recoup from future media rights deals — if, you know, they want it.
What could go wrong, you ask? How about another 6-6 football season, and the margin calls start flowing.
Because big-money boosters have all the patience in the world.
If it’s too good to be true, it probably is.
Matt Hayes is the senior national college football writer for USA TODAY Sports Network. Follow him on X at @MattHayesCFB. Listen to him daily, from 12-2 p.m., on 1010XL-Jacksonville.