BATON ROUGE, La. — LSU system President Dr. Wade Rousse unveiled his detailed financial plan aimed at generating new revenue for LSU Athletics to group of mega donors Monday night at the Governor’s Mansion.
Multiple sources spoke with LouisianaSports.net on condition of anonymity. One consistent message is that LSU is not pursuing a traditional private equity deal.
“This idea that there is a private equity deal inked is unequivocally false,” said one source. “LSU is not interested in traditional private equity.”
There were 16 confirmed attendees at the meeting in addition to Gov. Jeff Landry, Rousse and Acrisure Chairman and CEO Greg Williams. Additional LSU leadership in attendance included Board of Supervisors Chairman Lee Mallett, Chancellor Jim Dalton, Athletics Director Verge Ausberry, LSU Foundation President and CEO Krista Allen Raney, TAF President and CEO Matt Boorman and Louisiana Attorney General Liz Murrill.
“The feeling before the meeting was completely different that after the meeting,” said Charles Harvey, President of Southern Regional Medical Center. “It was somber because of the private equity article that came out yesterday. Not one person in the room was asked for money. They said, ‘we don’t need your money.’
Harvey was referring to a report from RedEyebr.com. When asked if the report was accurate, one source said, “Absolutely not.”
Gov. Landry told those in attendance he had been approached by more than 50 private equity firms interested in investing in LSU athletics and he turned them all down.
Sources were reluctant to share too much detail for fear of LSU losing its first mover advantage.
“The structure would allow LSU to own and control an LLC that can invest in companies that will generate revenue perpetually,” said another source.
Rousse is waiting on a third-party valuation to determine what the entity is worth as well as an opinion from the IRS. The source stressed that no deal has been signed, and under this structure, LSU would not forfeit any control.
Williams told the room he has been approached by two dozen different university presidents about a possible deal, but Rousse has “taken it to a different level,” said one person in attendance.
Another source was “blown away” and “encouraged” by Rousse’s plan. “This model is truly innovative and allows LSU to address the donor fatigue problem,” the source said.
A second meeting will take place Wednesday for invitees who could not attend Monday.
“I told the governor for the first time I think LSU and Louisiana is going to lead the nation in something,” Harvey said. “They got it. They figured it out. We’re lucky to have these people. It’s just shy of a genius plan.”
