Cash strapped LSU football just sold!

[THookem]

 

[Hookem72]

This is a terrible deal and idea that they took because they lack fiscal responsibility.   Reminds me of the city of Chicago selling the parking meters years ago.   

[THookem]

 

[Tuco Ramirez]

LSU whoring for money to pay for all of the Kiffin related promises they can’t keep. 

[smokeyiii]

This has disaster written all over it. Lawyers win again when this blows up.

[mcwast]

when kiffin inevitably does his icarus thing again, that whole house of cards is going to collapse into the mississippi

[Tuco Ramirez]

16 minutes ago, mcwast said:

when kiffin inevitably does his icarus thing again, that whole house of cards is going to collapse into the mississippi

 

[Glass Joe]

This reads like a cash raise by LSU’s athletic department to meet a short-term (5 year) liquidity target.  The “shares” will inevitably be called by LSU after 5 years, as they have no intention of sharing the upside of a new media rights deal in 2031.

So, this is effectively a loan from LSU fans to the AD for 5 years.  And the lenders (LSU fans) don’t even get donor foundation points in return 😂.

[Hornio]

28 minutes ago, Glass Joe said:

This reads like a cash raise by LSU’s athletic department to meet a short-term (5 year) liquidity target.  The “shares” will inevitably be called by LSU after 5 years, as they have no intention of sharing the upside of a new media rights deal in 2031.

So, this is effectively a loan from LSU fans to the AD for 5 years.  And the lenders (LSU fans) don’t even get donor foundation points in return 😂.

Yep, with no cash interest or amort.  I wonder what the guaranteed minimum return is? 10% per annum?

[camridleyfan]

2 hours ago, Tuco Ramirez said:

LSU whoring for money to pay for all of the Kiffin related promises they can’t keep. 

Kiffin + Will Wade + Mulkey + Jay Johnson = $$$$.  Landry is essentially the AD,  just a huge clusterf and powder keg waiting to blow up 

[Jerky]

😂

[Steamboat Willie]

3 hours ago, THookem said:

 

Anybody else notice this story completely flipped in about 24 hours? Ball reported Monday that LSU had already closed on $100M+ in exchange for 10% of future media rights. SBJ picked it up, and by yesterday afternoon it was everywhere. Then the donors actually met at the mansion, and Moscona's sources were saying nothing is signed and nobody in the room was even asked for money. That's a pretty big gap between two guys who usually know what they're talking about.

It's still worth thinking about what that structure would mean if someone actually does it, because it's a much bigger deal than it first appears. That's not fundraising. That's monetizing part of the future value of the football program, which is a completely different model than relying on donors or traditional debt. My guess is both guys are partly right. What Rousse is describing, LSU owning and controlling an LLC that invests in outside businesses, isn't the same as selling a slice of future SEC media revenue, but it's still private capital entering college athletics. The fact they're waiting on an IRS opinion and have already commissioned a third-party valuation tells you they're trying to thread a pretty fine legal needle.

The bigger question is whether this becomes a blueprint. If the structure proves workable, I don't think you wait long before Texas, Ohio State and Georgia are looking at something similar. Utah already closed with Otro, and Kentucky, Michigan State and Clemson have all stood up commercial entities. It feels less like LSU inventing something new and more like another step in where the business of college athletics is headed.