Editor’s note: The following essay was penned by Tony Guarisco and he graciously consented to my re-posting it full on LouisianaVoice. Tony provides interesting insights into how LSU managed to buy out one coach’s contract and commit itself to another that when combined total more than $100 million.
By Tony Guarisco
It was “wheels-up” in South Bend as “Viper One” lifted into the cold Indiana air. Aboard were LSU administration and athletic officials represented by its President, athletic director, and his assistant.
Their cargo was a 60-year-old football coach and his family. They were on a “Flight of Sighs” to the seamy side. His forsaken “Fighting Irish” football team are left to those he left behind. At least two of his staff followed him.
Brian Kelly had to wrestle with the reason for his change of heart – was it the challenge of sport or the siren of lucre? The sunrise view of “Our Lady’s” golden dome from the vantage point of his new home would be gone forever. Looking down, he could see his former campus and the iconic figure of “Touchdown Jesus” holding its arms at half-measure saying, “I tried to tell you!”
The Brinks truck that carted seventeen million dollars for the outgoing coach to Destin is returned to Baton Rouge with a larger $100,000,000 haul for the next guy. From where does all this money come?
Private money funds LSU athletics!
It is a myth that “no public money” is being used for LSU athletics. It’s past time to put the quietus on that bromide. The truth is that it is almost all “public money!”
Donations to the 501(c)3 Tiger Athletic Foundation (TAF) are the coins of the realm. Federal tax deductions fund sports entertainment at the university. For example, money destined for the common good is diverted to the TAF through federal tax write-offs. This is called “supplanting.”
As for season ticket holders, Tiger Stadium is truly “Death Valley” As a precondition to buying a ticket, fans must “donate “a fee to the Foundation for the right. -a clever, but questionable legal subterfuge. The administration is complicit in this dubious scheme.
LSU is rife with allegations of Title IX violations of sex and abuse scandals committed by its male athletes. The fired coach had multiple allegations of dismissing and hiding Title IX misconduct. He was never held accountable, except for losing too many games. His “buy-out” was paid with tax- deductible taxpayer money.
The LSU Board of Supervisors “Rubber-stamped the new hiring contracts. A clause intertwining the coach and athletic director contracts was approved without serious scrutiny.
If the donations become scarce, is the State liable to make up the difference from its treasury? Should a fiscal note be attached to the agreement, or does the Joint Legislative Committee on the Budget require prior approval? Will an annual audit be conducted? How much, if any public funds, might be in jeopardy?
Who cares about any of this? It’s all free money!
Louisiana Voice 
Tony raises interesting points about the tax write-offs to which the TAF may be entitled, but he may have exaggerated them by implication. He also makes an excellent point that TAF is substantially funded via involuntary donations paid for season tickets.
The TAF has assets of almost a half a billion dollars. It is not a state entity, but it is subject to audit by the Legislative Auditor. The most recent audit may be found here:
Click to access 00023CB3.pdf
While it may be legitimately argued that funding from TAF to LSU should be subject to review by the Joint Legislative Committee on the Budget AND that they should be shown in the budget approved by the legislature, to my knowledge they are not. Nor are fiscal notes prepared regarding these donations. [I haven’t been around state budgets for over 20 years, so somebody with more current knowledge, please correct me if I am wrong]
As far as the state being on the hook for any under contributions to TAF, there should be no such obligation. TAF’s contributions are voluntary. To the extent they supplant state funds, such funding could be appropriated to cover the expenses they fund if TAF withholds funding, but there is no requirement for such appropriations.
So, bottom-line, yes it would be a whole lot better if we all had a more transparent view of higher education funding. When, as state budget director, I questioned some of its financial transactions I was more or less told I was too stupid to understand the way they did things. I admit I didn’t understand some of them, even when try tried to explain them, but I don’t think my stupidity/ignorance was the only reason.
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I was under the impression that the state(LSU) is responsible for some where between $300,000 and $400,000 of the head coach’s salary.
I’d rather give my money to TAF than corrupt Louisiana politicians.
Nobody is asking you to give your money to corrupt politicians. You could make donations directly to LSU and stipulate how it is to be used.
(With apologies to Laugh In:) Veddy eenterresting!
Thanks to Tony and Tom for raising this huge subject. It can apply to all tax preferences or “tax expenditures.