While Southeastern Conference athletics spending soars above academic spending and states continue to slash budgets, the LSU Athletics Fund Transfer Policy should be seen as a positive step forward and not a bailout for the University, according to Amy Perko, executive director at the Knight Commission on Intercollegiate Athletics.
Since 2008, $102.22 million, or 43.6 percent, has been cut from the University’s state-appropriated funding, causing the University to raise tuition among other initiatives to balance its budget. During the same time, the LSU Athletics budget has increased from $75.8 million in 2008 to $96.2 million in 2012 — a nearly 27 percent increase.
Under the policy approved Sept. 7, LSU Athletics will donate $36 million to the University over five years.
LSU Athletics is one of seven NCAA D-1 public athletics programs in the nation that do not accept any state funding, according to USA Today.
“I think it’s a recognition that athletics is still part of the University,” Perko said.
The Knight Commission works to ensure athletics operate with the educational mission of universities.
The $7.2 million makes up only 1.6 percent of the University’s $445,000 fiscal year operating budget and 7.5 percent of LSU Athletics budget of $96.2 million.
Perko explained the move is a good step forward regardless of the amount. Of the seven NCAA schools that consistently make positive revenue and 22 that usually make money, the University is the only school to have any type of revenue-sharing agreement.
Vice Chancellor and Director of Athletics Joe Alleva said in an open letter to the public that the Transfer Policy helps link the University and LSU Athletics.
“This agreement more systematically ensures that the University reaps benefits from the success of Tiger Athletics,” he said.
The SEC spends nearly 12 times more on athletes than it does on academic spending per student, according to research done by the Knight Commission in 2009. As a whole, the Football Bowl Subdivision’s discrepancy is 6.8 times more on athletics than academics.
Specifically, SEC schools spent $156,833 on athletics per athlete and $13,471 per academic student. The numbers were determined by using the amount universities spent per full-time student on academic-oriented programs, and how much athletic departments spent per athlete on athletics, Perko said.
Information on how much the University spends per athlete and academic student could not be provided by the Office of Budget and Planning.
And the spending gap is continuing to grow.
Athletics spending has gone up across the nation while academic spending has remained relatively flat because of financial pressures with academic budgets and declines in state support, Perko said.
“Based on preliminary data [for 2012], the trends haven’t changed on either side of the equation,” Perko said.
To remedy the massive incongruity, Perko said the Knight Commission recommends athletic revenues be used to help broaden needs of universities and to develop a system where academic and athletic spending have a certain ratio while also asking for greater transparency in athletic finances.
“Programs that are in the unique position … should respond by helping to strengthen the education mission,” Perko said.
While Perko said LSU’s arrangement should serve as an example for the rest of the SEC, students are unsure how they feel.
“I don’t want to say [the arrangement] is a bad thing,” said undeclarded freshman Shanne Vignaud. “I think teams should only do it if they can afford it.”
Marketing senior Kaitlyn Colclough said athletic departments having to help universities is embarrassing, but acknowledged the need for a link between LSU Athletics and the University.
“I don’t think [athletics] should be completely separate,” she said. “It should all be one.”
