Just before Thanksgiving, something unexpected shook the football world. LSU thought they had secured quarterback Bryce Underwood, but to everyone’s surprise, he committed to Michigan instead. In the midst of this commotion, far away in San Francisco, a very wealthy private equity executive named Holden Spaht got a call from someone in South Louisiana. “Holden,” the caller said, “We need your help.”
Fundraising doesn’t just happen out of the blue; it needs a spark to get it going. This time, it started with Holden Spaht, a Baton Rouge native and Harvard Business School graduate. He’s generally kept a low profile while working tirelessly behind the scenes with a small team to finance LSU football’s Name, Image, and Likeness (NIL) efforts.
By late November, LSU football was facing some challenges. They were on the brink of finishing their third season with at least three losses. Their five-star quarterback had left for a better financial offer, and their NIL fund wasn’t keeping pace with their SEC rivals. This prompted coach Brian Kelly and the administration to kick off a fierce fundraising campaign aimed at attracting new talent and keeping their key players.
In December, they targeted raising half of their ambitious $13 million NIL goal for the spring, which seemed daunting, especially given a stark reality: Despite having high-profile athletes with lucrative endorsements like gymnast Livvy Dunne and basketball star Angel Reese, LSU’s football NIL funds lagged within their own conference.
In the past three seasons combined, LSU’s collective had spent about $12 million on its football team. For context, Ole Miss spent roughly the same amount in just a single season last year. Even Scott Woodward, the athletic director, frankly admitted they “weren’t leading the pack at first.”
However, things were beginning to shift for LSU. After a strong push, starting with that crucial phone call to Holden Spaht, a significant fundraising campaign unfolded. Kelly himself visited local businesses in Baton Rouge, promising to match up to $1 million in NIL donations with his own contribution to the athletics fund.
The initiative paid off. They received multiple seven-figure donations, which was timely as the industry was on the verge of a change. Starting in July, a revenue-sharing model would allow schools to directly pay their athletes, transitioning from the booster-funded models that had dominated for four years.
Thanks to significant donations — mainly from a handful of key benefactors — LSU managed to secure a top-ranked 16-player transfer class, retain standout talents like edge rusher Harold Perkins, and sign a top-10 group of high school recruits. This dynamic effort helped avoid what could have been devastating for LSU football: falling behind the competition.
One such supporter, Pepper Rutland, who donated a large sum toward the transfer drive, expressed his concerns about future changes in college football. He worried that without keeping up, LSU might become irrelevant if big shifts occur, like colleges departing from the NCAA. “It’s become a financial game,” he said.
Other programs have been making similar efforts, trying to reach substantial donation targets or depleting their collective coffers before the July revenue-sharing changes, which will bring tougher regulations. Deals signed before July won’t affect schools’ revenue-share limits, so some programs are “frontloading” payments to ensure flexibility with next year’s budgets.
FSU’s athletic director, Michael Alford, confirmed, “Schools are clearing as much as they can off the books now.” Russell White, president of The Collective Association, noted that some schools are allocating up to $16 million upfront, with plans to reserve some of that for future budgets.
In Baton Rouge, the objective was clear. Brian Kelly explained to Yahoo Sports that they were aiming to reach $13 million in advance payments. A part of this sum had already been utilized for last season, but the majority would be used to support the 2025 roster before the deadline.
This aggressive push is not just about improving performance and winning championships but also allowing their funds to go further as future revenue-sharing begins. According to Blake Lawrence, CEO of Opendorse, many programs, approximately a third of power conference schools, are engaging in some form of early payment.
However, Jason Belzer from SANIL pointed out a potential risk in this strategy. By receiving a significant chunk of their compensation early, players might lack motivation once the season starts. Additionally, after the initial advantage of frontloading, there could be challenges in maintaining competitive financial offers. “The market will become inflated,” he said.
At LSU, Austin Thomas, the football program’s general manager, has been using an advanced software system that evaluates each roster position’s financial worth. Drawing inspiration from the NFL, this system ensures LSU stays within budget while compensating players fairly based on their role and contributions.
This strategic approach was crucial in both recruiting new players and retaining current ones. “It required discipline,” said athletic director Scott Woodward, emphasizing the importance of sticking to their financial plan.
Thomas, who played a key role in building LSU’s championship team in 2019 and has a history of successful tenures at other college programs, is now a central figure in LSU’s recent NIL drive. He crafted a comprehensive presentation for top donors, explaining the significance of NIL and seeking their support.
The fundraising efforts were supported by several major contributors like Holden Spaht and Todd Graves, founder of Raising Cane’s. These benefactors, along with others such as attorney Gordon McKernan, provided the crucial financial backing needed to boost LSU’s NIL endeavors.
Despite this success, concerns about sustainability linger. Can LSU continue securing these funds annually to remain competitive? Economic limitations compared to states like Texas and Florida may pose challenges to maintaining their financial footing in the future.
The Tiger Athletic Foundation, LSU’s nonprofit fundraising arm, has been instrumental in funneling resources toward NIL, demonstrating the university’s commitment to supporting its athletes. Since July, they’ve averaged nearly $2 million monthly in NIL-specific donations, driven by large contributions from several generous donors.
As the new revenue-sharing era approaches, LSU and its supporters are aware of the stakes. “At 8-4, we realized more investment was necessary,” said Russell Mosely, one of the founders of Bayou Traditions. The focus remains on improving yearly results to ensure competitive performance.
In the operations building, Austin Thomas and his team are already working on the upcoming recruitment class. They are prepared for quick communication as soon as players enter the transfer portal. The benchmark for this year’s transfers emphasized experience, aiming to bring established players who contributed significantly in their previous programs.
LSU’s future strategy involves a balanced recruitment approach, with a focus on retaining a significant core of current players, complemented by new high school recruits and selective transfer additions. As Thomas puts it, the key is not just having enough funds but using them wisely. “It’s both an art and science,” he said.
With revenue-sharing expected to commence in July pending a House settlement approval, LSU aims to operate with a well-planned budget distribution across sports. Scott Woodward notes the ongoing discussions of balancing resources while still ensuring additional authentic NIL deals for athletes.
Though the future of collectives post-revenue-sharing remains uncertain, Bayou Traditions’ president, Jared Wilson, acknowledges the evolving landscape. Some may transition into marketing roles or merge with athletic departments, though contributions will remain essential.
As the financial stakes rise, the pressure to achieve success intensifies. “We need our investments to yield results,” said Mosely, echoing the sentiment among LSU supporters. The expectation is clear: nothing less than playoff contention will suffice.
