09/10/2012 01:48 PM
BATON ROUGE – The LSU System Board of Supervisors voted unanimously on Sept. 7 to approve a historic fund transfer program between LSU Athletics and the LSU System that will provide $36 million in revenues to LSU over a five-year period, and also introduces a revolutionary profit-sharing program.
Joe Alleva, LSU vice chancellor and director of athletics, told the board during a meeting of its Athletic Committee that the agreement is “unique to the athletic community,” and formalizes a transfer policy that has been “rather informal and random” in past years.
According to the agreement, the LSU Athletic Fund Transfer Policy will move $7.2 million from LSU Athletics to the university each year for five years “for use in supporting LSU’s academic, research, public service and other missions.”
In addition, Alleva said, in years in which the athletic program generates a surplus, a portion of the surplus would be transferred to other components of LSU, with the remainder of the surplus being used to fund athletics reserve accounts to protect against future financial uncertainties and provide a funding source for long-deferred maintenance projects for athletics facilities.
The proposed policy does not affect the sharing of LSU trademark licensing revenue, which will continue to be split evenly, Alleva said, nor does it affect payment of tuition by the LSU Athletics for scholarship student athletes, nor payments by LSU Athletics for utilities and similar direct services provided by other components of the university to LSU Athletics.
The approved policy also provides for a review after three years, to evaluate whether it continues to meet the needs of LSU.
“This proposal is a win-win for the university and the athletic department,” Alleva said. “I think it will put LSU in a position of envy among other universities in the country.”
The board also approved a $3.2 billion system-wide budget for the 2012-13 fiscal year, including a $445 million budget for the LSU flagship campus.
In other actions, the board:
Posted on Monday, September 10, 2012