Louisiana Regents Push to Punish Louisiana Tech, Louisiana-Lafayette, and ULM With Demotions to Save LSU

College athletics is undergoing massive financial restructuring across the nation. Athletic departments everywhere are suddenly running heavy deficits, as the cost of operations skyrockets. In Louisiana, these financial issues are taking center stage following recent budget disclosures.

The spotlight is currently fixed on Baton Rouge. LSU President Wade Rousse recently informed the Board of Regents that the LSU athletic department projects a $26 million budget deficit for the 2026-27 fiscal year. This follows an even larger confirmed $44 million deficit during the previous 2025-26 fiscal cycle.

These shortfalls stem from a combination of new athletic expenses, and massive coaching contracts. LSU recently opted to spend the maximum allowed $21.5 million on direct player compensation though the now necessary Name, Image, and Likeness (NIL) environment.

Additionally, the university still owes a $54 million buyout to former Head Coach Brian Kelly, while simultaneously funding a $91 million contract for current Head Coach Lane Kiffin.

LSU has reportedly exceeded its finalized athletic budgets by a combined $177.5 million over the past 6 years. University leadership now wants to bring in private equity firms, and give them access to future media rights to offset the current costs...basically a giant payday loan that LSU may never be able to pay back. However, this crisis in Baton Rouge is already creating shockwaves for other programs in the state.

Louisiana Regents Suggest Downgrading Smaller Programs

During state budget hearings in late September, a wild proposal was tossed out for sports inside Louisiana's higher education system. The focus shifted away from the massive deficit at LSU...and onto the state's smaller "Group of Six" programs.

Details from the budget hearing were initially uncovered by Greg Hilburn of The News Star...revealing the proposal from Board of Regents, when a member of the state's higher education governing board suggested that some of these programs should drop down to the Football Championship Series level.

Wilbert Pryor, a Louisiana Board of Regents member and LSU law school graduate, explicitly targeted three football programs...the Louisiana Tech Bulldogs, Louisiana-Lafayette Ragin' Cajuns, and Louisiana-Monroe Warhawks. The suggestion was that they should drop to the FCS level of Division 1 competition. Pryor's argument is essentially that the school who aren't LSU don't deserve to play at the same level as LSU.

Pryor pointed to the Tech, ULL, and ULM athletic department deficits as justification for the move. He noted a $20 million shortfall at ULL, $17 million at Tech, and $10 million at ULM. The suggestion immediately gained traction, with University of Louisiana System President Rick Gallot contracting a financial services firm to evaluate these programs.

The proposal has drawn sharp criticism from media outlets covering the smaller schools. Ragin Review pointed out that Pryor made the case for these three universities to downsize at almost the exact moment LSU was telling the same board about its $44 million deficit.

Why Smaller Schools Are Facing the Fallout

Dropping out of top-tier college football rarely solves a university's financial problems...it often creates new ones. Stepping away from the highest level of D1 competition immediately eliminates vital revenue channels that sustain athletic budgets.

Programs that take a step down sacrifice major broadcast earnings, postseason rewards, and lucrative opponent appearance fees. Outside of sports, losing high-profile athletics directly hampers student recruitment efforts, and local economic impact.

Sports fans in Louisiana can simply ask those who were fans of Centenary College sports. The school formerly held the highest level of D1 status, but made the move away for financial reasons...in that instant, they lost community support, donor support, ticket sales, and vital selling points for their brand. In the long run, it didn't work for Centenary...in fact, it might have hurt more long term than the short term benefits were worth.

Many view this proposal as a way to deflect attention from the massive spending happening in Baton Rouge. While LSU produces the biggest red numbers in the state, the focus remains on pushing smaller universities down the ladder. Instead of addressing the broader financial issues facing college athletics, state leaders seem intent on punishing programs that operate with significantly fewer resources.