Dear Tiger Fan,
Last week LSU introduced a new measure that establishes an annual transfer of $7.2 million from the Athletic Department to other parts of the University to support the academic mission of the institution. In addition, a revenue-sharing component will allow the University to share in surplus funds when the Athletic Department has a particularly successful financial year.
This agreement more systematically ensures that the University reaps benefits from the success of Tiger Athletics, not only for the national exposure it provides to LSU but also in direct financial benefits to its teaching and research mission.
It is important for you to know that the Athletic Department has been transferring millions of dollars to the University for a number of years. Whether for services provided by the University or for specific purposes, like campus beautification and classroom building repairs or parking lot construction, Athletics has transferred from $6.4 million to $8 million per year the last three years alone.
On occasion, Athletics has transferred larger amounts like $3.4 for the new Band Hall and, most recently, Athletics transferred an additional $4 million to the University during a budget crisis that helped offset potential cuts, layoffs and furloughs at LSU.
This new agreement formalizes and stabilizes the annual transfer of funds from Athletics to other parts of the University.
So why do we do it? Simply put, Tiger Athletics is a part of LSU and should play a role in the broader mission of the institution. The LSU Athletic Department is in the unique position of being able to participate at a level that most other athletic programs cannot, and it is our responsibility to help make LSU a better and more productive university.
The truly unique part of this new policy is the revenue-sharing component. When LSU Athletics has a surplus at the end of any year, the first $3 million will go into athletic reserve funds. Of the next $2 million in surplus funds, 25 percent will go to the University, and any surplus of more than $5 million will be split evenly between Athletics and other parts of the University.
This is good for Athletics because it allows us to build critical financial reserves in order to maintain and improve facilities and to fend off future unforeseeable financial challenges. This is good for the University because it provides for the sharing of revenue in successful athletic seasons and any new revenue from future television contracts or revenue from championship events.
We are proud that the LSU Athletic Department can be a model program in its support of the teaching and research mission of the greater University. It is because of the sustained success of our sports teams and especially the passion and support of fans and alumni the world over that LSU Athletics can serve this unique role.
As always, we welcome your comments at email@example.com. Unfortunately we cannot answer every e-mail we receive, but please be assured they are all read.
Vice Chancellor and Director of Athletics