Report: LSU football closes on $100+ million private equity deal tied to future media rights

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LSU has reportedly “quietly closed” a purported $100-plus million deal with private equity that is tied to the future media rights, according to a sourced report from RedEyeBR.com’s JR Ball, via Sports Business Journal. The deal, which reportedly closed last week per Ball, would transfer approximately 10% of the LSU football program’s value to a private equity entity “in exchange for an immediate cash infusion tied to the program’s media rights agreement” between the SEC and Disney.

“Investors receive either a guaranteed minimum return or a percentage of enhanced media rights value when the SEC’s current deal with ABC/ESPN/Disney is renegotiated — whichever is higher,” Ball wrote, per SBJ. The private equity deal is believed to be “structured similarly” to those recently executed by Michigan State and Utah, according to Ball.

New LSU president Wade Rousse and Louisiana Gov. Jeff Landry are reportedly “hosting two closed-door sessions with (the school’s) Top 40 athletic donors” to explain the new agreement, per Ball, who also added “most of those donors are unaware the private equity transaction has already occurred,” via SBJ.

LSU reportedly retained a “call option after five years to reclaim the 10% stake,” per Ball, and the program would “almost certainly exercise that call if the football performs as expected” under new head coach Lane Kiffin.

LSU is also reportedly considering additional revenue moves that “could include selling targeted annual revenue streams — such as merchandising — to outside investors,” according to Ball, who added his source revealed the team’s ticket revenue is “off the table” due to potential “concerns that outside control could lead to escalating prices for fans.”

This report will be updated.

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