Business Impact of LSU Football

By Lauren Lenox

Schools all across the country are relying on other outlets to subsidize athletic departments. Louisiana State University is one of the seven schools that does not receive subsidies from other sources.

According to USA Today Sports, out of the 228 NCAA Division I schools, there are only seven schools who do not receive subsidies from anywhere else to remain afloat.

In addition to, LSU Athletics is one of the 23 athletic departments that is self-sustaining which relies solely on self-generated funds. However, LSU’s Athletic Department does not receive any additional funds or tax dollars from the state nor from the academic side of the school.

Furthermore, the LSU Athletic Department does not receive money from student funds like most schools. Instead, the athletic department provides over $7 million annually to the university academically to assist with educational needs.

In 2013, LSU Football brought in roughly $37.5 million directly through ticket sales, guarantees and parking to the athletic department. The remaining assets came from tradition funds, SEC Network, and smaller areas such as concessions and radio.

Ticket sales make a huge impact on LSU Athletics. For the last 10 years, season tickets have been sold out helping to generate the $32 million the athletic department receives.

According to LSU Athletics Business Coordinator, Matthew LaBorde, the LSU football team is a huge asset to not only the athletic department but to the university. The benefits of football help to create a great branding opportunity to promote athletics which in turn helps to create more attention towards the university.

“LSU is a brand in itself. Everyone who sees those three letters knows who we are. It puts us on a higher platform above others,” said LaBorde.

During the past decade, LSU Football’s success has brought a lot of attention to the school. With the media exposure, it has helped to shape a new brand for the university.

LSU Athletics Marketing Director, Daniel Nunes, shared how LSU Football does not need to be branded because it is a brand in itself.

“It’s (LSU Football) the porch to LSU Athletics just like LSU Athletics is the porch to LSU. It’s (LSU Football) the largest national brand,” said Nunes.

Many reasons one can attribute to the LSU football team is the increases in LSU’s student enrollment each year as well as higher graduation rates.

LSU students appreciate when the Tigers play at home. It is a chance for people to come together and to create an atmosphere like no other.

The students have been known to devote more time to the football team if the team has a successful season.

Even more importantly, LSUSports.net shared how LSU Football helps out with local businesses economically in and around the Baton Rouge area. This football program attracts people from all of the country bringing business to the local businesses surrounding campus.

LSU Football has been attributed providing about 4,000 jobs in the Baton Rouge Metro area.

Dr. Loren Scott, from Loren C. Scott and Associates, Inc., helped to breakdown the economic impact that LSU football has made on the state of Louisiana and the Baton Rouge Metro Area.

“There is a diverted spending issue associated with LSU football between state impacts and the Baton Rouge Metro,” said Scott.

In 2012, there were more than 1.5 million people in attendance at LSU Athletic events. This concludes that on a typical night in Tiger Stadium there were more people than there are living in 49 of the 64 parishes in the state.

In 2013, the average LSU out-of state fan spent about $237 in the state of Louisiana and of that amount, $169 was spent in the Baton Rouge Metro.

During the 2013 season, in-state LSU fans from outside of the Baton Rouge area spent about $62.8 million and of that $47.7 million was spent in the Baton Rouge Metro.

LSU Athletic Director, Joe Alleva, explained how LSU Athletics has made an economic impact on Louisiana and the city of Baton Rouge.

“We are partners with the community. LSU Athletics has a huge financial impact on the Baton Rouge community,” said Alleva.

In 2012, civic groups who helped on game days received about $815,000 as support for their establishments.

Disadvantages also come into play when talking about LSU Football. One of the main disadvantages to the athletic department is the student section.

The LSU student section is a huge factor because they will be future donors someday. They show a poor reflection of becoming a future donor by leaving games early and not wanting to preserve traditions. The athletic department depends on these future alumni to help provide funds for future athletic facilities and other major expenses.

The disadvantage that LSU football has on the community is that game days are huge events which cause changes to day-to-day routines.

For example, after big games the Event Management Department has to shut down roads and create a plan of contraflow to control the amount of people trying to leave the stadium.

Another disadvantage of football is the huge impact it makes on schools. For example, when LSU played at Mississippi State on a Thursday night in 2012, the school was shut down due to fans tailgating around the campus.

Also, the amount of work that goes into planning and preparing for a game is an excessive amount. LSU Athletics prepares months in advanced for the football season. There are about 2,765 people who work on a LSU Football game day.

Recently, the University of Alabama-Birmingham had to get rid of their football team due to the fact that the athletic department was struggling to keep its program operational. If LSU were to shut down its football program, the athletic department budget would decrease from $110 million to $20 million.

Hypothetically, of the remaining $20 million, only $5 million comes from ticket sales from the remaining sports. LSU’s Athletic Department could almost be viewed as an independent franchise.

With that being said, the athletic department relies heavily on the $80 million it generates from LSU football and would not be self-sustaining without the sport.

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