New revenue twist: LSU reportedly gives up 10% of media rights revenue for up front capital

[18IsTheMan]

This is a new twist on raising revenue. LSU has reportedly agreed to give up 10% of its future media rights revenue (largely football) in exchange for an up front payment of $100,000,000+ million in capital.

Report unconfirmed but originated with a reputable Louisiana reporter.

 

[3USC1801]

This is a new twist on raising revenue. LSU has reportedly agreed to give up 10% of its future media rights revenue (largely football) in exchange for an up front payment of $100,000,000+ million in capital.

Report unconfirmed but originated with a reputable Louisiana reporter.

Aha! So, private equity has already started?

Why would LSU give up 10% of all future media rights? It makes one wonder how long the contract lasts. “All Future” can be a long time and encompass a lot of money.

 

[18IsTheMan]

Aha! So, private equity has already started?

Why would LSU give up 10% of all future media rights? It makes one wonder how long the contract lasts. “All Future” can be a long time and encompass a lot of money.

They are apparently not in a great financial situation and need money now. This gives them a wad of cash immediately.

 

[muscleknight]

Maybe Lane gave out IOUs instead of checks to players?

 

[Lurker123]

They are apparently not in a great financial situation and need money now. This gives them a wad of cash immediately.

That makes me curious. Lane jumped there for a better situation supposedly. More money to buy a title.

Is LSU's position that bad, or is Ole Miss's just worse?

 

[gamecock stock]

What is 10% of its current media rights revenue?

 

[18IsTheMan]

Some details:

https://sports.yahoo.com/articles/report-lsu-football-closes-100-164914512.html

 

[Lurker123]

Some details:

https://sports.yahoo.com/articles/report-lsu-football-closes-100-164914512.html

I didn't even know Michigan st and Utah had already done it.

 

[18IsTheMan]

I didn't even know Michigan st and Utah had already done it.

Me either. I quickly tried to find those details but couldn't see anything.

 

[Lurker123]

Me either. I quickly tried to find those details but couldn't see anything.

Turns LSU from a one off into just the last to do it.

Meaning, its now a trend, and a matter of time for everyone else. Makes that thread picking out potential companies more relevant.

One question in my mind. Do the people who own this 10% get any say in how the program is run? I didn't see it in the article, but really just skimmed.

 

[Piscis]

They are apparently not in a great financial situation and need money now. This gives them a wad of cash immediately.

I know the actual university has been struggling financially for some time now. LSU athletics has been running on sort of parallel tracks to the school, meaning the tow are not really connected financially, for a while.

I have to wonder if Lane hasn't come in and drained the coffers buying players? Hiring Kiffin seems to be making a deal with the devil. Everywhere he goes, things seem to be much worse when he moves on.