LSU athletic $ will no longer support university

[Vowelguy]

Report: LSU Athletics to end fund-transfer policy with school

While I'd agree there is danger in the U being dependent on relying on athletic money, it would be even more problematic to have toilets of gold in the athletic building while professors/courses are being cut.

The school should charge "LSU athletics" rent.

 

[John Greene]

I'm pretty sure that it effectively does that already. I believe all SEC schools except Vandy that the athletic department funds all maintenance, or upgrades to athletic facilities out of AD revenue or dedicated fund raising. I know at Bama the AD is also responsible for all cost related to game day activities anywhere on campus.

 

[billybud]

At U of F, UCF, and now FSU...the athletic departments are separate from the university in that they are private non profit corporations or Direct Service Organizations...DSO's.

Although they operate for the betterment of their universities, DSOs are partly autonomous from those universities and to some degree function as separate entities.

DSOs are their own corporations, with their own rules. DSO employees work for them, not the associated university. DSOs can thus rely on different systems for payroll and benefits that are used for university employees.

 

[gioff2323]

what a great way to allow presidents to control the school; and the NCAA too. And folks wonder why college athletics is headed down the shi++er

 

[billybud]

The Presidents ARE the NCAA and have always controlled that organization....

It is the Presidents, or their proxies, who are the voting parties.

 

[#MACtion]

This also puts LSU athletics at risk of having to pay taxes. The only reason these schools havent in the past is becasue the school in general is a non-profit organization. You cut your ties to the school and sharing money with them and all of sudden you may be viewed as a separate entity making huge money off of TV and Attendance like pro-sports which would call for taxes to be paid on income. Not sure this is a good move.

 

[billybud]

In Florida...the athletic departments that are legal DSO's are:

First, it’s worth considering what exactly is a DSO. It is a not-for-profit, tax-exempt corporation in Florida. A DSO has been certified by a university’s board of trustees and approved by the Florida Secretary of State. It must also comply with a bevy of federal and state tax laws in order to qualify for exemption.
...
As mentioned above, the UF Athletic Department is a DSO. The Gators’ website makes clear that while it operates apart from the university, it is designed to advance UF’s interests. The website also expresses that the athletic department is a “self-supporting entity” that “receives no direct state funds.” Along those lines, the department’s expenses “are funded through event ticket sales, booster contributions and Southeastern Conference revenues.” Like other athletic departments, UF’s employs compliance officers to ensure that students, coaches and trainers adhere to various NCAA and university rules. To that end, it takes on student interns for learning opportunities in compliance and related fields.