Demosthenian

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Even other LSU fans are largely avoiding this thread.

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it’s because I’m right, they’re stupid, and they’re cowards that run away.

Bystanders like you always love to cast labels, but the winners write the history. And I’m right on this topic. Full stop across the board.

Thanks for all the upvotes

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How will you spend your millions?

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What a lame response.

Cowards like you—YOU—being proven wrong left and right, and don’t have the balls to even participate in the discussion unless it’s a juvenile drive-by troll. GTFO

Well this sounds pretty stupid now

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[Demosthenian] ChatGPT'd the shite out of his original post because he's too much a dumbass to make an intelligent argument.

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Tigerdew showing off 2 IQ points saying dipshit things

Idiot LSU fan. Checks out.

just….pathetic

Yeah, Sidewalk, as we all knew, thanks for confirming: you’re full of shite.

And you’re stupid, as you go around disagreeing with things you have only a shadow of conceptual understanding of:

• FACT: Folks in charge at LSU to date have been deceptive about the nature and objectives of this deal, comparing their prior comments with what is now being widely reported as the terms of the proposed deal. Review the record of comments made with what’s being reported now across multiple updates

• FACT: LSU is seeking to financially monetize its CFB asset. Not sure how this can be more clear, reading the reported terms of the proposed deal

• FACT: The reported “partner” in this deal is not “private equity”. It’s an individual. Of an insurance and lending platform. Again, unequivocal based on the identified party in reports

• FACT: This proposed structure is a mortgage financing. The principal is $100mm. The interest is paid annually as a percentage of profits. The lien is the media rights, conveyed through a percentage of equity of the entity that holds the assets. Literally the definition of a mortgage

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I’m mad that people in charge are deceptive, liars, and through whatever term they want to call it, financially monetizing the great past time we call college football, while lazily pointing to a scape goat like “private equity” to somehow obfuscate what they’re actually doing. That frustration extends to the latest permutation: mortgaging the long-term promise of an athletics program (LSU in this case) to simply pay off the short-sighted irresponsible decisions of the present. Which is something you’d think all CFB fans would get behind. And why it’s so idiotic LSU people would be supporting it. But ride or die with your team colors, I guess.

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Taking a victory lap for this.

SidewalkTiger and you other LSU dipshits that flouted your ignorance in this thread, GTFO

Weak deflection

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Who?

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Every single dipshit that nega-posted and downvoted my comments in my prior thread about this, including you

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Can 40 really successful people all simultaneously make a bad deal while it was all so simple SEC rant posters had it all figured out? I doubt it

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They likely don’t have a politically palatable choice. That’s how you get smart people making terrible deals. Because Gov. Landry having to backtrack and dip into government budget reserves or increase taxpayer spending to pay buyouts and player salaries is about the only “solution” that would go over worse, and that’s the outcome otherwise.

Happy to clarify for you.

Williams gives $100mm.

Williams gets 7% of “profits”, which is a squishy term, as you can manually alter what items qualify as “revenue” and which items qualify as “expenses”, but the concept is he’ll get 7% of annual cash flow the entity produces, net of the operating costs to run it on a year-to-year basis.

Williams also gets 9% ownership of the entity. So the proportion he’s entitled to get each year in distributions is actually different than his % ownership, which is a little different for your average investor buying a dividend stock, where ownership = proportion of the dividend you get. Why these two figures differ is unclear, but there are many reasons (for example: minimum governance participation he required for voting, but LSU didn’t want to give away that much in net profits.)

LSU’s entire goal here is to use the $100mm to repay their contractual obligations (contract salaries, buyouts, future player compensation, program operating costs, etc.) it’s their hope they can invest the balance of the $100mm they haven’t yet spent (likely in tax-free bonds, maybe equities) to continue growing that amount over time to stay ahead of the net funding shortfall between the payment obligations they owe (enumerated above) and the net cash flow they’ll be bringing in (as an SEC affiliate, media rights, etc.)

These mortgage financings rarely work to get borrowers of the hole they find themselves in.

This is the exact kind of loan sharking people want to denigrate the private equity community for doing. When in fact, as we see here, any lender can demand these types of terms. Indeed, these terms are simply “market standard”, which means that if LSU is seeking financial support for their program, they have no way of avoiding this usurious bargain.

LSU should wish it had done a deal with “private equity” a la Utah’s deal with Otro Capital. That actually had a quality executive team assembled as a critical cornerstone of the deal and a key focus in strategy and developing a sustainable, completely new, entity to perform the functions of monetizing the value of Utah’s brand. Nowhere is it shown that Utah had to give away any critical assets to establish their partnership with Otro, nor was it the case that Otro fronted cash that would create a suffocating obligation on behalf of the university. THAT “private equity” deal by an actual PE firm sounds productive, healthy, and equitable as far as mutually beneficial goals goes. This LSU loan does not

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It's not your team's fault or anything and I'm certainly not saying they aren't valid, but in 2021 you probably shouldn't have been there to begin with. Maybe you could say LSU's 2007 was similar,

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Hah! What??