LSU will be just fine even when they do end up eating most of that contract.

Donors or industries?

College football is so out of hand that the highest paid public employee in multiple states is a college football coach.

I get that money is fungible so money paid by the state to LSU's operating budget as a whole is less money that needs to be donated. Still, unless LSU is different from every other power 5 public university, then the athletic department does not rely on public financing.