LSU Football Faces Turbulence After $53 Million Coach Buyout
Louisiana State University (LSU) is grappling with significant upheaval following the dismissal of head football coach Brian Kelly and the staggering $53 million buyout associated with his departure. This turmoil has prompted sharp criticism from Louisiana Governor Jeff Landry, who publicly condemned the financial mismanagement linked to high-profile athletics within the state.
At a recent press conference intended to address food stamp concerns, Governor Landry pivoted sharply to the issue of LSU’s athletics, particularly targeting the economic implications of Kelly’s firing. He expressed frustration over the massive financial burden placed on taxpayers, particularly as it coincides with a struggling football season. “I care about what the taxpayers are on the hook for,” Landry stated. “I was not happy about raising ticket prices while we were having a losing season and we were paying a coach $100 million and not getting results.”
Landry’s comments have resonated beyond the borders of Louisiana, garnering approval from various stakeholders in college athletics. A board member from another institution remarked, “Finally, someone said it out loud. This is so irresponsible.”
The Broader Context of College Football Economics
The situation at LSU is reflective of a larger trend within college football, where exorbitant coaching contracts and buyouts have become commonplace. Since the dismissal of Mike Gundy at Oklahoma State on September 23, a total of ten head coaches from Football Bowl Subdivision (FBS) schools have been let go, leading to combined buyouts of approximately $169 million. This financial strain coincides with a significant shift in college athletics, following a $2.8 billion settlement approved by U.S. District Judge Claudia Wilken that mandates colleges share revenue with athletes.
With the financial landscape changing, many university administrators are voicing concerns about what they perceive as reckless spending. One board member expressed their dismay, saying, “No one is flying the plane. There’s not even a plane. It’s a hot air balloon. Whatever way the wind blows, that’s the way college sports go.”
The escalating costs of college football are not a new phenomenon, but the pace at which expenses are rising has reached unprecedented levels. Institutions have engaged in facility upgrades that seem extravagant, such as mini-golf courses and marble showers, all in an effort to attract top recruits. Additionally, coaching salaries have skyrocketed, with nine head coaches earning more than $10 million annually at the start of this season.
Financial Implications and Future Considerations
As university budgets become increasingly strained, the question arises: where is the money coming from? One board member described the financial situation succinctly: “The money does not exist.” The traditional view of college football as a lucrative revenue source is being challenged as spending outpaces income.
For example, Penn State is obligated to pay James Franklin $49 million in buyout costs, while LSU’s financial commitment to Kelly is well documented. Data from the Knight-Newhouse College Athletics Database reveals that in the past decade, Penn State’s football spending has surged by 113%, while overall revenues have only increased by 83%. At LSU, football spending rose by 44%, compared to a 40% increase in revenues.
Despite the potential for mitigating buyout costs through contractual clauses requiring coaches to seek new employment, the financial obligations remain significant. For instance, LSU’s offensive coordinator Joe Sloan, also dismissed alongside Kelly, is entitled to $530,000 in severance.
As schools like Virginia Tech announce plans for substantial investments in athletics, including a projected $229 million over the next four years, the reliance on donor contributions and student fees is increasing. This model raises concerns about the sustainability of funding for athletics, especially when combined with the need to satisfy rising coaching salaries and player contracts.
The recent turmoil at LSU, including the departure of athletic director Scott Woodward amid the fallout, illustrates the precarious nature of college football finances. As institutions navigate this challenging landscape, the future of athletic programs remains uncertain, with many questioning whether current spending practices can continue without significant reforms.
