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Nearly every public university athletic department in Louisiana is struggling financially, putting additional pressure on university budgets, Louisiana Illuminator reports.
LSU was the only one of the state’s 11 public Division I programs to report a profit in 2024-25, and even that profit was narrow. Other schools have used revenues such as tuition and student fees to help cover athletic shortfalls.
Rising costs associated with revenue sharing, which allows Division I programs to directly pay athletes, are adding to the financial pressure. The problem extends beyond Louisiana. A U.S. Government Accountability Office report found that 94% of Division I athletic programs spend more than they generate.
To generate new revenue, lawmakers recently authorized every state university to establish economic development districts, which can redirect existing sales tax revenue within university property and potentially levy new taxes.
Universities are also pursuing corporate sponsorships, facility naming rights, conference changes to reduce expenses and large events at athletic venues. LSU, for example, generated more than $17 million from a Zach Bryan concert at Tiger Stadium.
The financial strain is affecting universities beyond athletics, with UL Lafayette’s $13 million athletic deficit contributing significantly to a broader fiscal crisis that led to staff layoffs and other financial difficulties.
