The Louisiana State University Board of Supervisors voted unanimously Friday to approve a pipeline of financial support between athletics and academics that is believed to be the first of its kind in the nation.
Schools' athletic departments - including LSU's - have kicked in to general campus coffers during times of budgetary crisis, but the new LSU arrangement to transfer $36 million from athletics to the university at large over five years is unprecedented.
According to The Times-Picayune of New Orleans, the LSU Athletics Fund Transfer Policy not only pledges $7.2 million from athletics annually to support the university's academic, research and community service missions, it establishes an additional revenue-sharing plan based on just how profitable the athletic department is. The LSU athletics website reports that the first $3 million of any surplus is earmarked for athletics reserve accounts, but 25 percent of surplus falling between $3 million and $5 million will be transferred to the university. Any surplus exceeding $5 million will be split evenly.
The policy does not affect the established 50-50 split of tradmark licensing revenue. The athletic department will also continue to pay all utlities and athletic scholarships, which alone amount to nearly $10 million annually.
"This proposal is a win-win for both the university and the athletic department," LSU athletic director Joe Alleva told the Board of Supervisors during a presentation before Friday's vote. "I think it will put LSU in a position of envy among all the universities in the country."
Student members of The Daily Reveille editorial board, meanwhile, termed the policy "embarrassing." "It's time for Louisiana to demand that higher education is prioritized, for the sake of the University's academic reputation and for the sake of other higher educational institutions in the state that don't have athletics departments that regularly bring in millions of dollars," the board wrote, adding, "A bailout from LSU Athletics is kind, but it's not a long-term solution to the University and the state's lack of financial security."
