In a bold move to capitalize on new NCAA rules, LSU has secured a lucrative sponsorship deal with Woodside Energy, marking a significant shift in college sports' approach to revenue generation. This partnership, which will see the Woodside Energy logo adorn every LSU uniform starting this fall, underscores the university's proactive stance in tapping into emerging financial opportunities.
LSU's athletic director, Verge Ausberry, emphasized the necessity of such strategies in today's competitive landscape, stating, “Every day, in athletic departments across the country, you better be figuring out how to generate more revenue. If you're not doing that, then you're gonna be dying.”
This forward-thinking mindset led LSU to initiate the sponsorship process well before the NCAA officially approved jersey ads. With the ability to directly compensate players now a reality, the pressure to boost revenue streams has intensified, prompting LSU to explore various avenues, including field sponsorships and a concert series.
Clay Harris, LSU’s deputy athletic director and chief revenue officer, highlighted the challenges of securing a partner, noting the importance of early action. “If we had waited for NCAA approval, finding a partner by fall would have been a long shot,” Harris explained.
The deal was facilitated by Playfly Sports, LSU’s multimedia rights partner, which conducted extensive research to determine the sponsorship's value. This involved analyzing television viewership, social media impressions, and comparing the potential earnings to those of professional teams with similar sponsorships.
After narrowing down potential sponsors, LSU finalized the agreement with Woodside Energy in August. The logo, designed in LSU’s iconic purple and gold, will also feature on practice jerseys and even Mike the Tiger’s costume. This strategic branding ensures that the patch complements LSU’s traditional colors while maintaining harmony with Nike’s apparel designs.
While financial details remain undisclosed, the potential value of such sponsorships is substantial. For context, UNLV recently inked a five-year, $11 million deal for a similar patch. Industry estimates suggest these deals could range from $500,000 to $12 million annually for top-tier schools.
Christy Hedgpeth, president of Playfly Sports Properties, remarked on the growing connection between commercial and competitive success, predicting that more schools will follow LSU’s lead. Indeed, several SEC schools, including Arkansas and Auburn, are already in the process of securing their own sponsorships.
Ausberry pointed out the limitations of traditional revenue sources like ticket sales and apparel partnerships, highlighting the need for innovative solutions. “We have to start getting more aggressive in how we're generating revenue in this new era of college sports,” he said.
Under the new NCAA regulations, teams can feature two commercial logos during the regular season and one additional logo in conference championships, though postseason approvals are still pending. LSU plans to stick with the single Woodside Energy patch for now but is open to exploring further opportunities on equipment like helmets or bats.
Harris concluded, “Professional sports have shown us how to maximize revenue streams, and we need to adapt, tastefully, while upholding the traditions that make college sports unique.” This move by LSU not only sets a precedent but also signals a new era of financial strategy in collegiate athletics.