Thought this was a interesting article on the dollar value of major college programs Pitt is ranked 58.
Ohio State Coach Urban Meyer is earning his keep. Texas is still a financial giant in the world of college football. The Fighting Irish aren’t what they used to be. And Indiana tops Purdue—for now.
At least that’s what the most recent study of college football program valuations by Indiana University associate finance professor Ryan Brewer tells us.
The big takeaway this year: As the popularity of college football continues to skyrocket, valuations among schools that Brewer studies are up—on average—26 percent this year (based on 2016 financials), compared to the previous year.
Brewer has been calculating valuations for college football programs as if they were stand-alone for-profit enterprises since 2011. He released his most recent report last week. His work, first published in the IBJ six years ago, now is cited widely in the sports and financial media, including in The Wall Street Journal.
Brewer values the college football programs the way Wall Street analysts value businesses, based on cash flow history and myriad other factors.
Values are up this year, largely due to increased cash flow and revenue.
Total cash flow among the Football Bowl Subdivision (FBS) schools was up 24 percent in 2016 compared to 2015, Brewers’ study showed. That’s following an 18 percent increase in 2015 over 2014.
Total revenue among FBS schools was 17 percent higher in 2016 than 2015, and that follows a 9 percent increase in 2015 over 2014.
Ohio State ranks No. 1 on Brewer’s most recent list with a valuation (or “intrinsic value,” as Brewer labels it) of $1.5 billion. In 2011—the season before Urban Meyer arrived as the Buckeyes’ head football coach—Brewer had Ohio State at No. 12 in his rankings with a valuation of $292.8 million.
Texas, which ranked No. 1 in 2011 with a $848.3 million valuation, rose to $1.24 billion in Brewer’s calculations this year, which was good for the No. 2 spot.
Oklahoma was the only other football program in the billion-dollar club, ranking No. 3 with a $1 billion valuation.
While Notre Dame’s valuation increased from $811.5 million in 2012 (Notre Dame wasn’t included in the 2011 study because he only studied public schools for the report published in 2011) to $856.9 million this year, the Fighting Irish dropped from No. 2 in Brewer’s 2012 valuation ratings to No. 7 this year.
That’s still way ahead of Indiana’s other major college football programs.
IU ranks No. 44 on the list with a valuation of $178.2 million, and Purdue ranks No. 55 with a $135 million valuation in Brewer’s most recent ranking.
Both schools have made substantial progress in their valuations but lost ground in the rankings—which could be interpreted as the schools losing ground in the college athletics revenue arms race.
In 2011, Indiana had a valuation of $77.8 million. But its No. 36 rank in 2011 was a bit higher than it was this year.
In 2011, Purdue had a valuation of $55.5 million, with a No. 44 ranking.
The Hoosiers and Boilermakers both have first-year coaches this season and are boasting stadium renovations, so there’s reason to hope that IU and Purdue could rise in future ranking.
In addition, Purdue started expanded beer sales this season at Ross-Ade Stadium, so that can’t hurt either.
Here are the full rankings in Brewer's most recent study:
Fall 2017 Rank
Institution Name
2016 Adjusted Cash Flow
2016 Adjusted Revenues
Intrinsic Values
1
Ohio State
66,521,000
130,114,000
1,510,482,000
2
Texas
85,283,000
145,223,000
1,243,124,000
3
Oklahoma
62,871,000
124,923,000
1,001,967,000
4
Alabama
53,689,000
132,318,000
930,001,000
5
LSU
61,247,000
118,879,000
910,927,000
6
Michigan
60,396,000
118,961,000
892,951,000
7
Notre Dame
69,032,000
121,180,000
856,938,000
8
Georgia
42,339,000
105,529,000
822,310,000
9
Tennessee
55,551,000
109,606,000
745,640,000
10
Auburn
59,103,000
120,572,000
724,191,000
11
Florida
51,735,000
111,948,000
682,031,000
12
Penn State
37,323,000
93,294,000
549,497,000
13
Texas A & M
57,335,000
102,725,000
522,863,000
14
Nebraska
39,214,000
83,708,000
507,679,000
15
South Carolina
40,459,000
95,948,000
484,757,000
16
Iowa
45,178,000
92,630,000
483,564,000
17
Arkansas
44,208,000
96,381,000
456,153,000
18
Wisconsin
34,378,000
84,789,000
439,379,000
19
Washington
40,317,000
84,621,000
434,313,000
20
Florida State
7,960,000
69,137,000
385,339,000
21
Oregon
37,076,000
76,666,000
368,529,000
22
Michigan State
27,523,000
73,139,000
336,794,000
23
Mississippi
35,229,000
77,778,000
330,503,000
24
Clemson
15,642,000
68,175,000
328,411,000
25
Southern California
14,524,000
67,884,000
324,195,000
26
Arizona State
29,800,000
67,831,000
315,412,000
27
UCLA
24,169,000
63,918,000
314,436,000
28
Kentucky
30,594,000
70,852,000
287,589,000
29
Oklahoma State
30,106,000
67,533,000
285,293,000
30
Kansas State
29,492,000
61,614,000
277,203,000
31
Virginia Tech
16,881,000
59,125,000
269,883,000
32
Minnesota
30,915,000
74,346,000
260,264,000
33
Miami of Florida
16,566,000
59,087,000
254,502,000
34
Texas Tech
31,209,000
57,955,000
246,871,000
35
Miss State
28,712,000
64,270,000
230,655,000
36
Stanford
21,876,000
62,226,000
225,479,000
37
California Berkely
15,538,000
47,899,000
220,017,000
38
Georgia Tech
23,238,000
52,668,000
212,068,000
39
Utah
26,899,000
56,831,000
206,365,000
40
Colorado
22,971,000
57,843,000
203,533,000
41
Iowa State
20,859,000
59,254,000
196,973,000
42
North Carolina State
19,372,000
48,774,000
191,813,000
43
Kansas
30,454,000
58,807,000
183,031,000
44
Indiana
20,709,000
55,261,000
178,168,000
45
Virginia
16,700,000
50,915,000
168,534,000
46
Northwestern
18,680,000
53,666,000
163,315,000
47
Louisville
13,360,000
51,060,000
160,899,000
48
Texas Christian
15,422,000
58,083,000
153,631,000
49
Maryland
14,581,000
49,782,000
147,608,000
50
North Carolina
11,989,000
50,097,000
147,179,000
51
Arizona
17,985,000
48,126,000
146,153,000
52
Oregon State
13,890,000
44,004,000
144,713,000
53
Illinois
16,678,000
47,931,000
143,318,000
54
Wash State
16,654,000
48,515,000
142,052,000
55
Purdue
14,982,000
42,812,000
135,021,000
56
Missouri
8,119,000
44,740,000
126,219,000
57
Syracuse
13,705,000
38,565,000
120,903,000
58
Pittsburgh
7,769,000
41,228,000
114,468,000
59
Baylor
5,854,000
45,023,000
103,591,000
60
BYU
9,897,000
32,714,000
98,924,000
61
Central Florida
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Reporter
Sports business, tourism, manufacturing
The Score Sports-business blog moderator
Schoettle grew up in Indianapolis, graduating from Southport High School and Indiana University. He then departed on a tour of middle Indiana, reporting for papers in Greenwood, Frankfort, Columbus and Franklin before landing at IBJ in 1998. At his previous jobs, he spent a decade as a political/government reporter. Beyond writing, Schoettle’s passions include animals and wildlife, watching all manner of television and long-distance cycling. Though he put away his trumpet many years ago, he remains an avid music fan. Schoettle shares his home in Southport with his wife, Elizabeth, two Pembroke Welsh Corgis and two cats. Preferring to live in a “park-like setting,” one of his primary goals each spring and summer is to see how seldom he can mow his front lawn.
Phone:
(317) 472-5374
Follow Anthony on Twitter: www.twitter.com/IBJTheScore
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Ohio State Coach Urban Meyer is earning his keep. Texas is still a financial giant in the world of college football. The Fighting Irish aren’t what they used to be. And Indiana tops Purdue—for now.
At least that’s what the most recent study of college football program valuations by Indiana University associate finance professor Ryan Brewer tells us.
The big takeaway this year: As the popularity of college football continues to skyrocket, valuations among schools that Brewer studies are up—on average—26 percent this year (based on 2016 financials), compared to the previous year.
Brewer has been calculating valuations for college football programs as if they were stand-alone for-profit enterprises since 2011. He released his most recent report last week. His work, first published in the IBJ six years ago, now is cited widely in the sports and financial media, including in The Wall Street Journal.
Brewer values the college football programs the way Wall Street analysts value businesses, based on cash flow history and myriad other factors.
Values are up this year, largely due to increased cash flow and revenue.
Total cash flow among the Football Bowl Subdivision (FBS) schools was up 24 percent in 2016 compared to 2015, Brewers’ study showed. That’s following an 18 percent increase in 2015 over 2014.
Total revenue among FBS schools was 17 percent higher in 2016 than 2015, and that follows a 9 percent increase in 2015 over 2014.
Ohio State ranks No. 1 on Brewer’s most recent list with a valuation (or “intrinsic value,” as Brewer labels it) of $1.5 billion. In 2011—the season before Urban Meyer arrived as the Buckeyes’ head football coach—Brewer had Ohio State at No. 12 in his rankings with a valuation of $292.8 million.
Texas, which ranked No. 1 in 2011 with a $848.3 million valuation, rose to $1.24 billion in Brewer’s calculations this year, which was good for the No. 2 spot.
Oklahoma was the only other football program in the billion-dollar club, ranking No. 3 with a $1 billion valuation.
While Notre Dame’s valuation increased from $811.5 million in 2012 (Notre Dame wasn’t included in the 2011 study because he only studied public schools for the report published in 2011) to $856.9 million this year, the Fighting Irish dropped from No. 2 in Brewer’s 2012 valuation ratings to No. 7 this year.
That’s still way ahead of Indiana’s other major college football programs.
IU ranks No. 44 on the list with a valuation of $178.2 million, and Purdue ranks No. 55 with a $135 million valuation in Brewer’s most recent ranking.
Both schools have made substantial progress in their valuations but lost ground in the rankings—which could be interpreted as the schools losing ground in the college athletics revenue arms race.
In 2011, Indiana had a valuation of $77.8 million. But its No. 36 rank in 2011 was a bit higher than it was this year.
In 2011, Purdue had a valuation of $55.5 million, with a No. 44 ranking.
The Hoosiers and Boilermakers both have first-year coaches this season and are boasting stadium renovations, so there’s reason to hope that IU and Purdue could rise in future ranking.
In addition, Purdue started expanded beer sales this season at Ross-Ade Stadium, so that can’t hurt either.
Here are the full rankings in Brewer's most recent study:
Fall 2017 Rank
Institution Name
2016 Adjusted Cash Flow
2016 Adjusted Revenues
Intrinsic Values
1
Ohio State
66,521,000
130,114,000
1,510,482,000
2
Texas
85,283,000
145,223,000
1,243,124,000
3
Oklahoma
62,871,000
124,923,000
1,001,967,000
4
Alabama
53,689,000
132,318,000
930,001,000
5
LSU
61,247,000
118,879,000
910,927,000
6
Michigan
60,396,000
118,961,000
892,951,000
7
Notre Dame
69,032,000
121,180,000
856,938,000
8
Georgia
42,339,000
105,529,000
822,310,000
9
Tennessee
55,551,000
109,606,000
745,640,000
10
Auburn
59,103,000
120,572,000
724,191,000
11
Florida
51,735,000
111,948,000
682,031,000
12
Penn State
37,323,000
93,294,000
549,497,000
13
Texas A & M
57,335,000
102,725,000
522,863,000
14
Nebraska
39,214,000
83,708,000
507,679,000
15
South Carolina
40,459,000
95,948,000
484,757,000
16
Iowa
45,178,000
92,630,000
483,564,000
17
Arkansas
44,208,000
96,381,000
456,153,000
18
Wisconsin
34,378,000
84,789,000
439,379,000
19
Washington
40,317,000
84,621,000
434,313,000
20
Florida State
7,960,000
69,137,000
385,339,000
21
Oregon
37,076,000
76,666,000
368,529,000
22
Michigan State
27,523,000
73,139,000
336,794,000
23
Mississippi
35,229,000
77,778,000
330,503,000
24
Clemson
15,642,000
68,175,000
328,411,000
25
Southern California
14,524,000
67,884,000
324,195,000
26
Arizona State
29,800,000
67,831,000
315,412,000
27
UCLA
24,169,000
63,918,000
314,436,000
28
Kentucky
30,594,000
70,852,000
287,589,000
29
Oklahoma State
30,106,000
67,533,000
285,293,000
30
Kansas State
29,492,000
61,614,000
277,203,000
31
Virginia Tech
16,881,000
59,125,000
269,883,000
32
Minnesota
30,915,000
74,346,000
260,264,000
33
Miami of Florida
16,566,000
59,087,000
254,502,000
34
Texas Tech
31,209,000
57,955,000
246,871,000
35
Miss State
28,712,000
64,270,000
230,655,000
36
Stanford
21,876,000
62,226,000
225,479,000
37
California Berkely
15,538,000
47,899,000
220,017,000
38
Georgia Tech
23,238,000
52,668,000
212,068,000
39
Utah
26,899,000
56,831,000
206,365,000
40
Colorado
22,971,000
57,843,000
203,533,000
41
Iowa State
20,859,000
59,254,000
196,973,000
42
North Carolina State
19,372,000
48,774,000
191,813,000
43
Kansas
30,454,000
58,807,000
183,031,000
44
Indiana
20,709,000
55,261,000
178,168,000
45
Virginia
16,700,000
50,915,000
168,534,000
46
Northwestern
18,680,000
53,666,000
163,315,000
47
Louisville
13,360,000
51,060,000
160,899,000
48
Texas Christian
15,422,000
58,083,000
153,631,000
49
Maryland
14,581,000
49,782,000
147,608,000
50
North Carolina
11,989,000
50,097,000
147,179,000
51
Arizona
17,985,000
48,126,000
146,153,000
52
Oregon State
13,890,000
44,004,000
144,713,000
53
Illinois
16,678,000
47,931,000
143,318,000
54
Wash State
16,654,000
48,515,000
142,052,000
55
Purdue
14,982,000
42,812,000
135,021,000
56
Missouri
8,119,000
44,740,000
126,219,000
57
Syracuse
13,705,000
38,565,000
120,903,000
58
Pittsburgh
7,769,000
41,228,000
114,468,000
59
Baylor
5,854,000
45,023,000
103,591,000
60
BYU
9,897,000
32,714,000
98,924,000
61
Central Florida
ADVERTISEMENT
Reporter
Sports business, tourism, manufacturing
The Score Sports-business blog moderator
Schoettle grew up in Indianapolis, graduating from Southport High School and Indiana University. He then departed on a tour of middle Indiana, reporting for papers in Greenwood, Frankfort, Columbus and Franklin before landing at IBJ in 1998. At his previous jobs, he spent a decade as a political/government reporter. Beyond writing, Schoettle’s passions include animals and wildlife, watching all manner of television and long-distance cycling. Though he put away his trumpet many years ago, he remains an avid music fan. Schoettle shares his home in Southport with his wife, Elizabeth, two Pembroke Welsh Corgis and two cats. Preferring to live in a “park-like setting,” one of his primary goals each spring and summer is to see how seldom he can mow his front lawn.
Phone:
(317) 472-5374
Follow Anthony on Twitter: www.twitter.com/IBJTheScore
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1
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