Louisiana Division I college athletics programs are receiving about $2 million each annually from the state’s new SPORT Fund, which is funded by sports gambling tax revenue, Louisiana Illuminator reports.
The money must support student-athletes, though schools are not required to publicly report how they spend it.
Several schools plan to use the funds for new scholarships and financial support. LSU says it will use the money for scholarships and to help offset rising tuition costs for athletes, while Southern and UL Monroe also plan to add scholarship opportunities.
Other schools, including UL Lafayette, Nicholls and Southeastern, say the funds will help balance athletic budgets and reduce the need for university subsidies.
The fund was created to help athletic programs manage financial pressures from major changes in college sports, including the requirement under the House v. NCAA settlement for schools to share revenue with athletes. Louisiana Tech indicates it may use its allocation to help meet those obligations, along with supporting academic services and nutrition programs.
However, because the law does not require spending reports or penalties for misuse, the public may never know exactly how each school uses the money. LSU is the only profitable sports program in Louisiana, while several others face significant financial challenges, especially UL Lafayette, which has reported a large budget deficit in its program.
The SPORT Fund money is not intended to directly pay athlete revenue-sharing obligations, but schools may use it to ease broader financial pressures.
Louisiana Illuminator has the full story.
