The LSU System Board of Supervisors unanimously approved a media contract Thursday between LSU Athletics and Viacom Outdoor, which could be worth more than $80 million over the next 10 years.
The contract will consolidate all radio and television rights, all corporate sponsorships, scoreboard signs and game-day programs into one entity, LSU Sports Properties.
In the 2004-2005 year, when all media contracts were separately negotiated, LSU Athletics reported a net revenue of $5.5 million – the most the department has ever earned from media contracts. Under the new contract, the University will earn at least $7 million per year through 2009, Athletics Director Skip Bertman said. In addition, Viacom Outdoor pledged $2 million for LED displays to be placed on the east and west sides of Tiger Stadium and $4 million in media to promote the University nationally.
“This will be our flagship university,” said Doug Paschal, vice president and general manager for Viacom Outdoor.
Bertman said LSU is the latest in a long line of institutions that have entered into similar agreements.
“I would estimate that 85 percent of the 68 [Bowl Championship Series] schools and Notre Dame do this,” he said. “This is a wonderful opportunity for Louisiana State University. This is a winner.”
Viacom Outdoor has similar agreements with Arizona State University, the University of Maryland, the University of Virginia and the United States Air Force Academy. The company is a subsidiary of media conglomerate Viacom Inc., which operates well-known brands CBS, MTV, Blockbuster Video, Paramount Pictures and Simon and Schuster Publishing, among others.
Additionally, the Board unanimously approved an increase in ticket prices for men’s and women’s basketball games. Increases ranged from $1 to $3 for single-game tickets, depending on their location. Women’s basketball season ticket prices were increased from $15 to $50, depending on location.
Also at the meeting, the University System’s chancellors discussed the possibility of a future tuition increase.
“We are 30 percent below our peer group in tuition and fees,” Chancellor Sean O’Keefe said.
O’Keefe said a tuition increase of $400 would be needed to bring the University’s expenditures per full-time student up to the national average.
“If we are relying on state appropriations, we are not going to achieve the objectives of the flagship agenda,” he said.
Contact Mathew Sanders at msanders@lsureveille.com