Editor’s Note: An earlier version of this story had a headline that stated the ASI loan was approved, that is not correct. The board passed a resolution to begin conversations for the loan, the error has since been corrected.
Sacramento State’s Associated Students, Inc. voted to approve conversations of a resolution of allowing a loan of $2.5 million for a potential transfer to the FBS on Friday.
This loan is only half of the $5 million Sac State needs if they want to make the transfer to the FBS, the upper echelon of college football.
Sac State President Luke Wood said a transfer to the FBS will boost enrollment and be beneficial for students who decide to receive a degree from Sac State.
“Sacramento State is on the rise right now, and our transition to FBS football is one of those important pieces, but it also means something on the back end,” Wood said. “You can look at any of the data that’s out there. It increases enrollment and it increases the value of your degree.”
Wood has mentioned support for a move up the ladder to the FBS with tweets over the past few weeks saying the school is “FBS or bust.”
No middle for us. FBS or bust. The best of the best or bust. That’s what our student athletes deserve
— Dr. Luke Wood (@DrLukeWood) January 24, 2025
Wood listed some benefits universities receive after an FBS transition in a tweet on Wednesday, including the increase of out-of-state applications as a positive result of moving up. He also said in the tweet, “an investment in football is an investment in enrollment.”
When Universities make the transition to FBS, they experience many benefits. One of those benefits is an increase in out-of-state applications, usually somewhere between a 20-30% increase. Out of state students pay a higher rate because their families have not paid into the…
— Dr. Luke Wood (@DrLukeWood) January 29, 2025
Wood said the loan shouldn’t raise concerns as the school would have to pay ASI back.
“I personally see this particular issue as actually non-controversial, because it’s a loan,” Wood said. “ASI isn’t giving anything. It’s a loan that has to be paid back for the campus per Cal State law. So it’s not a risk in that way.”
RELATED: BREAKING: Sac State announces plan for new multi-use stadium
Sac State has shown initiative to improve their athletics, especially football, with the announcement of a plan to build a new multi-use stadium where Hornet Stadium currently stands on Sept. 26, 2024.
Renovations to The WELL have also kicked off in early January in an effort to make it the new home for basketball and volleyball by the start of next season.
“What we’re trying to do is make it so that these men right here have an opportunity at the highest level. And right now, we are restricted in being able to do the things that we need to do,” Wood said about Sac State football.
ASI President and Chief Executive Officer Nataly Andrade-Dominguez said there’s no timeframe yet for the loan and negotiations could take up to a few days or weeks.
“The terms and final amount is up for negotiation. Once a contract is completed, the contract will be presented to the board and the student body,” Andrade-Dominguez said.
Andrade-Dominguez said the funds for the loan would come from ASI reserves and once a contract is completed, it will be presented to the board and the student body.
“In terms of where the money is coming from. It is coming from our ASI reserves. The loan will not disrupt any operations of ASI. This loan will not affect any of our current programs and services we offer,” Andrade-Dominguez said.
