Despite NCAA Championship, Loss of $7.8 Million Sets Angel Reese’s LSU Back

The lady luck has once again stopped smiling at Angel Reese-led Lady Tigers. Following the season-opener debacle, the LSU have now faced back-to-back defeats for the first time in nearly two years. And it has poorly reflected on Kim Mulkey’s best bets assembled for another championship bid. But apart from their on-court hiccups, the financial situation at LSU doesn’t appear pleasant.

Notably, the program’s previous year’s victory marked the highest-scoring championship game in the history of NCAA women’s basketball. Despite their significant achievement on the court, the team has been facing huge financial challenges.

Angel Reese and Co. confront last year’s setbacks

The Lady Tigers have come under a fine-toothed comb as LSU’s Statement of Revenues and Expenses from last year has recently been shared on X. LSU’s athletic department has reported an approx. $4 million deficit for the last year. The defending NCAA women’s basketball champion LSU Tigers operated at a $7.8 million loss during their championship year in 2023.

To put things in perspective, the program’s revenue for last year stood at just under $2.5 million, however, its expenses skyrocketed to about $10.3 million. A significant chunk of this expense was allocated towards coaches’ salaries and bonuses calculated to a value of $4.4 million, which is attributed to be an amount nearly double the revenue generated by the program.

Having won the championship last year, LSU has had an indifferent start this term. On the court this season, LSU’s Tigers lost to Mississippi State 77-73, marking their second consecutive defeat under coach Kim Mulkey, the first time in nearly two years. The Tigers were earlier defeated by South Carolina 76-70. But it is there finances they paint a more worrisome picture.

The significant financial deficit in the championship season raises questions about the sustainability of the women’s basketball program at LSU, despite the team’s on-court success.

However, these financial challenges are not new to LSU. Notably, the department did report a $10 million deficit in 2021. Nonetheless, this grim reality exists despite LSU’s football program generating a considerable portion of the department’s revenue. While LSU’s athletic department as a whole lost about $3.9 million in 2023, its football program netted a profit for the university of $54 million.

When it comes to LSU’s basketball side, it is also significant to mention how NIL deals are impacting the program’s revenue.

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NIL to the rescue?

The NIL deals do impact LSU’s yearly revenue in several ways. Notably, players like Angel Reese and Flau’jae Johnson leverage their name, image, and likenesses, and earn money. Angel Reese is one of LSU’s key players with numerous NIL deals with brands like Reebok, Bose, and McDonald’s. Reese is making $1.7 million this year. On the other hand, Flau’jae Johnson also has deals with brands like Puma, Tampax, Powerade, and JBL Audio.

Although the NIL money goes directly to the players, these deals have a direct impact on their team’s revenue generation, as these players can attract more fans. As a result, it could lead to an increase in ticket sales and boost merchandise sales.

In-house motivation also works wonders as a talented and mindful player can encourage other players on that team to perform better and hence naturally give a little push up the revenue.

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However, as effective as they might seem, these efforts of revenue generation through NIL will not be a direct measure. Hence, LSU may need revenue optimization within the LSU women’s basketball program to ensure its long-term viability and stabilize the team’s financial health.