LSU Audit Reveals $1 Million Deficit Amid Statewide University Struggles

Baton Rouge, Louisiana — An audit from the Louisiana Legislative Auditor revealed that Louisiana State University‘s (LSU) athletic department incurred a deficit of nearly $1 million during the 2023-24 fiscal year. This financial strain is part of a wider trend affecting public universities across Louisiana, with five other institutions reporting a combined deficit exceeding $21.7 million.

The report outlined that LSU generated $220.28 million in revenue while reporting $221.1 million in expenses, leading to a shortfall estimated at $818,000. The primary revenue streams for LSU included $51.78 million from ticket sales, $79.14 million from contributions—which saw an increase of $15.6 million from the previous year—and $43.62 million from media rights associated with the Southeastern Conference.

Additional revenue sources comprised $5.22 million in guarantees and $1.53 million gained from football bowl games. In contrast, the athletic department’s expenses were substantial, with $43.19 million allocated for coaching salaries, benefits, and bonuses. Support staff and administrative compensation amounted to $38.06 million, and other operational costs reached $36.2 million. An additional $2.07 million was spent on football bowl-related expenses, which contributed to the overall financial challenges faced by the department.

The audit further explored capital asset activities, revealing that LSU’s athletic department holds total capital assets valued at $320.39 million. After accounting for depreciation, these assets have a net value of $183.89 million. The Tiger Athletic Foundation, which supports LSU athletics, reported net capital assets totaling $202.8 million.

Moreover, LSU’s athletic department is under significant financial pressure due to debt. The university has $47.58 million in outstanding principal from a bond issuance of $102.37 million. In the past year, the department has managed to retire $3.41 million in principal, but it still faces interest obligations amounting to $9.09 million.

Similar financial deficiencies have been uncovered in other Louisiana higher education institutions. Louisiana Tech University recorded a deficit of $10.5 million, with expenses totaling $33.37 million against revenue of only $22.87 million. The largest contributors to Louisiana Tech’s revenue were $6.77 million in institutional support and $5.03 million in contributions, while significant expenses came from coaching salaries and athletic student aid.

Additionally, Northwestern State University reported a $2.66 million deficit, and the University of Louisiana at Monroe faced a shortfall of $4.49 million. McNeese State University and Nicholls State University logged deficits of $1.65 million and $1.69 million, respectively. Each of these institutions heavily relies on institutional support and student fees in their efforts to balance their budgets.