Started By
Message
A clearer picture regarding LSU and the rumors around private equity is emerging
Posted on 8/9/26 at 3:57 pm
Posted on 8/9/26 at 3:57 pm
quote:
LSU is considering the creation of a new entity to house broadcast revenue it earns via the SEC’s media rights deal with ESPN, with the hope being that the private company could use the revenue for investments, creating a “perpetual revenue-generating model” to help “alleviate strain in an NIL era, where big-money contracts for both coaches and athletes have stretched donors thin,” according to a report by Alyse Pfeil and Jon Blau in the New Orleans Times-Picayune.
quote:
The new entity would reportedly sell a nine percent stake to a private investor believed to be Acrisure CEO Greg Williams in exchange for a $100 million investment. Williams would then receive seven percent of any profits the business generates. The university would consider selling an additional 11 percent stake to other partners, with the athletic department “likely” to control 80 percent of the new company. The plan was shared with the school’s top athletics boosters last week.
quote:
But the concept of moving revenue earned from broadcast rights into a private company, where the capital can presumably be used for investments that generate a higher return than if it were to sitting inside the athletic department, is novel.
In the 2024-25 fiscal year, LSU received $72.4 million in broadcast revenue from the SEC.
That figure is expected to jump considerably when ESPN’s media rights deal with the conference expires in 2030.
Awful Announcing
7
Posted on 8/9/26 at 4:01 pm to SidewalkTiger
Wait this is legal?
Posted on 8/9/26 at 4:03 pm to Ancient Astronaut
quote:
Wait this is legal?
I'm sure that has to be hashed out
Posted on 8/9/26 at 4:07 pm to SidewalkTiger
Posted on 8/9/26 at 4:08 pm to Ancient Astronaut
quote:
Wait this is legal?
Posted on 8/9/26 at 4:12 pm to SidewalkTiger
“LSU Sold off 10% of their program to. PrivEq! Dumbasses. “
-Ole Miss & Alabama posters.
-Ole Miss & Alabama posters.
Posted on 8/9/26 at 4:13 pm to SidewalkTiger
I'll admit, I don't understand a fricking thing about it.
Is it saying the guy gives you $100 million, and then he(as in a business) gets 9% of TV revenue, which would be just short of $10 million a year and then he'll just spend/invest it in the hopes of getting returns? And then in those returns, he gets 7%?
Why not just take the $100 million and invest it from the start and just donate 93% of it whatever it makes? Unless you're spending $100 million to get a lot more later from those TV contracts, especially as they go up in 2030, and then using the money to "invest" in your own projects or something.
Or LSU can just take a % of their revenue and invest themselves.
Is there a length to the contract that makes it stop after a few years and says - well if you're generating revenue, you no longer need the TV money?
I must not be understanding something. I guess it's a matter of if the investments pay off or not, otherwise you'd be better off with a pay day loan.
Is it saying the guy gives you $100 million, and then he(as in a business) gets 9% of TV revenue, which would be just short of $10 million a year and then he'll just spend/invest it in the hopes of getting returns? And then in those returns, he gets 7%?
Why not just take the $100 million and invest it from the start and just donate 93% of it whatever it makes? Unless you're spending $100 million to get a lot more later from those TV contracts, especially as they go up in 2030, and then using the money to "invest" in your own projects or something.
Or LSU can just take a % of their revenue and invest themselves.
Is there a length to the contract that makes it stop after a few years and says - well if you're generating revenue, you no longer need the TV money?
I must not be understanding something. I guess it's a matter of if the investments pay off or not, otherwise you'd be better off with a pay day loan.
This post was edited on 8/9/26 at 4:15 pm
Posted on 8/9/26 at 4:16 pm to dstone12
quote:
LSU Sold off 10% of their program to. PrivEq! Dumbasses
You are correct, we were wrong. Turns out the plan is 20%
Posted on 8/9/26 at 4:19 pm to SidewalkTiger
If yall are gutting future financial earnings now just wait for the pain when kiffiin doesnt work out
Posted on 8/9/26 at 4:23 pm to OleVaught14
quote:
You are correct, we were wrong. Turns out the plan is 20%
20% of the private entity, not 20% of the TV revenue.
Big difference.
Posted on 8/9/26 at 4:25 pm to SidewalkTiger
So they are going to essentially give a private investor a 9% ownership stake in LSU athletics in exchange for $100 million. He will receive a 7% share of all future profits generated from this company, which is essentially an LSU athletics proxy. LSU reserves the right to sell an additional 11% to other private investors. So at this time they plan to sell no more than a 20% ownership stake. This new company will invest this $100 million and hope the investment has a positive return. They will allow private investor/s to invest future revenues and have a say in decision making as they own a stake in the investment company.
LSU has found a way to marry a private equity deal to a pyramid scheme, with the ceremony being held at a casino.
If they lose their investment or simply have a negative return they will have to reach out to additional investors to make up their losses.
So LSU’s revolutionary idea is to not just give private investors a percentage stake of future revenues, but to let them gamble with it too.
Somehow LSU has taken the idea of a private equity deal and made it sound even worse.
LSU has found a way to marry a private equity deal to a pyramid scheme, with the ceremony being held at a casino.
If they lose their investment or simply have a negative return they will have to reach out to additional investors to make up their losses.
So LSU’s revolutionary idea is to not just give private investors a percentage stake of future revenues, but to let them gamble with it too.
Somehow LSU has taken the idea of a private equity deal and made it sound even worse.
Posted on 8/9/26 at 4:27 pm to SidewalkTiger
Be interested to see how that idea pans out, legally. Not sure what the rules are in Louisiana, but in nearly every other state (at least for everyone except Vandy) those dollars are considered state funds. Can you do that - including private equity partners in the mix and guaranteeing them a portion of profits - legally, with state funds?
I suppose that other places are doing this too?
I suppose that other places are doing this too?
Posted on 8/9/26 at 4:30 pm to SidewalkTiger
quote:
20% of the private entity, not 20% of the TV revenue.
LSU is selling 20% stake in a new entity which will house all their TV money. From a glance, the first owner is buying 9% for a return of 7% profit. Assuming that holds, the remaining 11% would be sold at 8.5% profit.
So LSU is selling 20% ownership at a 15.5% profit rate.
quote:
Big difference.
No, not really. They are selling 20% of an entity controlling their media revenue.
Posted on 8/9/26 at 4:35 pm to OleVaught14
quote:
No, not really. They are selling 20% of an entity controlling their media revenue.
20% of the profits generated by their TV revenue and other invested dollars, per the article. Still a big difference.
Posted on 8/9/26 at 4:40 pm to SidewalkTiger
quote:
20% of the private entity, not 20% of the TV revenue
The very first sentence of your post says that LSU will transfer TV revenues to this company. So this new private company will essentially be LSU’s future TV revenue.
quote:
LSU is considering the creation of a new entity to house broadcast revenue it earns via the SEC’s media rights deal with ESPN,
So yes, this plan does give investors an ownership share of future TV revenues - they will own a share of this private company. And where will future TV revenue end up? This new private company. Unless they lose the money because the stock market crashes, the real estate market crashes, or any of the other ways people lose money investing.
The best case scenario will see LSU paying out a portion of future TV revenue money to investor/s in exchange for this capital buy in. The worst is they lose their $100 million buy in AND a share of future TV revenues gambling on investments. If that happens you can put a fork in LSU athletics.
They really are pushing all their chips onto the table.
Posted on 8/9/26 at 4:41 pm to SidewalkTiger
quote:
20% of the profits generated by their TV revenue
Read that slowly. Read it aloud. Get someone else to read it to you.
Think about it really hard.
Posted on 8/9/26 at 4:44 pm to SidewalkTiger
Cool so it’s a win for LSU and cutting edge, and great deal for you guys. I bet the guys saying private equity or it’s not a good deal for LSU are embarrassed.
Posted on 8/9/26 at 4:47 pm to captdalton
quote:
They really are pushing all their chips onto the table.
They need the $100 mil up front. If it was just about investing and getting returns, they would invest the media payout themselves into a basic SP500 fund (which has out returned the average PE Fund over the last year, 5 years, 10 years, and 20 years).
They just need the up front cash
Posted on 8/9/26 at 4:50 pm to captdalton
quote:
So yes, this plan does give investors an ownership share of future TV revenues - they will own a share of this private company. And where will future TV revenue end up? This new private company.
An ownership share sure, a say in investment allocation, probably, but it doesn't appear that they receive a percentage of the TV revenue going forward, which is what you were stating last week.
I understand the goalposts have now been moved now though.
If the TV revenue is accumulating each year and being reinvested for profit, that's vasty better than the principle being chiseled away at year after year, which again, was the stance last week.
Page 1 of 1
Back to top
Follow SECRant for SEC Football News