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What the top 75 college sports programs are worth - Printable Version

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What the top 75 college sports programs are worth - 82lsju - 12-19-2024

we're #23

https://www.cnbc.com/2024/12/19/college-sports-programs-valuations.html


RE: What the top 75 college sports programs are worth - JeffInCorvallis - 12-19-2024

(12-19-2024, 09:43 AM)82lsju Wrote:  we're #23

https://www.cnbc.com/2024/12/19/college-sports-programs-valuations.html

The only top 25 programs on this list that are not members of the Big Ten or SEC are Notre Dame, Clemson, Florida State, and Stanford.

As a side note, I am skeptical that Purdue, Kansas, and Vanderbilt are worth more than UCLA.


RE: What the top 75 college sports programs are worth - M T - 12-19-2024

Since there are no college franchises, I don’t see what this alleged valuation is supposed ti mean.   Just clickbait?


RE: What the top 75 college sports programs are worth - 82lsju - 12-19-2024

(12-19-2024, 10:18 AM)M T Wrote:  Since there are no college franchises, I don’t see what this alleged valuation is supposed ti mean.   Just clickbait?

from the article

Quote:With major college sports programs collectively generating billions in revenue each year, private investors are looking to get a piece of the action.


But how much is a college sports program worth?

It’s a question CNBC set out to answer after speaking with people in the private equity world who are seeking to invest in college sports.



RE: What the top 75 college sports programs are worth - M T - 12-19-2024

I understand buying advertising rights, but buying the whole Athletic Department?  Moving in your own staff?  Selling off bits of it?  Issuing stock?

The isn't a MLB or NFL team whose only tie is the city's name they wear.


RE: What the top 75 college sports programs are worth - Spiny_Norman - 12-19-2024

(12-19-2024, 12:12 PM)M T Wrote:  I understand buying advertising rights, but buying the whole Athletic Department?  Moving in your own staff?  Selling off bits of it?  Issuing stock?

The isn't a MLB or NFL team whose only tie is the city's name they wear.

Yes, but it's a stream of cash flows that apparently is sufficient to attract external investors. I don't think that private equity will want to buy an entire AD. Just maybe 50% of it in exchange for a big upfront amount. A question in my mind is who would an equity investor negotiate with if they want to buy a share of a public university's AD. Does the university have the authority to sell a part of itself? Does the state (the legislature or the governor) have a say in the matter? And what would be the tax treatment of such an entity?

We're plowing new ground here. But private equity (not just in the US but around the world) has so much money they are chasing new investments and getting into new business areas everywhere.


RE: What the top 75 college sports programs are worth - Mick - 12-19-2024

(12-19-2024, 10:02 AM)JeffInCorvallis Wrote:  
(12-19-2024, 09:43 AM)82lsju Wrote:  we're #23

https://www.cnbc.com/2024/12/19/college-sports-programs-valuations.html

The only top 25 programs on this list that are not members of the Big Ten or SEC are Notre Dame, Clemson, Florida State, and Stanford.

As a side note, I am skeptical that Purdue, Kansas, and Vanderbilt are worth more than UCLA.

UCLA has faced a revenue shortfall from a number of angles; ticket sales, merchandise, refreshments, sponsors have all declined. And the base year calculation did not include the new Big 10 contract. They eliminated a deal with Under Armour and had to take a much less lucrative deal. Their revenue has not recovered to pre-COVID levels.

FWLIW, the study's sponsors gave UCLA the best multiplier of revenue relative to overall valuation of any California university, and 20th overall in the study. Interestingly, by that metric, Oregon and Washington State were #1 and #2, then 'Bama, Texas, Ohio State and Oklahoma. By that metric, the California schools were UCLA (20), USC (25th), Stanford (50th), Berkeley (66th), and San Diego State (68th).

What pulled USC's valuation down was a high level of subsidies.

These California schools have the most valuable sports programs – NBC Los Angeles

This article thinks Stanford has a very bright future:

These California schools have the most valuable sports programs – NBC Los Angeles


RE: What the top 75 college sports programs are worth - old spanish trail - 12-19-2024

Even allowing for subjective analysis, this is an interesting list. What would be included in "revenue"?


RE: What the top 75 college sports programs are worth - Spiny_Norman - 12-19-2024

(12-19-2024, 01:35 PM)Mick Wrote:  What pulled USC's valuation down was a high level of subsidies.

These California schools have the most valuable sports programs – NBC Los Angeles

This article thinks Stanford has a very bright future:

These California schools have the most valuable sports programs – NBC Los Angeles

Does the CNBC analyst know how much the University subsidizes Stanford's AD??? It's in the neighborhood of $30-40M a year.


RE: What the top 75 college sports programs are worth - 82lsju - 12-19-2024

(12-19-2024, 02:34 PM)Spiny_Norman Wrote:  
(12-19-2024, 01:35 PM)Mick Wrote:  What pulled USC's valuation down was a high level of subsidies.

These California schools have the most valuable sports programs – NBC Los Angeles

This article thinks Stanford has a very bright future:

These California schools have the most valuable sports programs – NBC Los Angeles

Does the CNBC analyst know how much the University subsidizes Stanford's AD??? It's in the neighborhood of $30-40M a year.

who knows, but if they read the AD 2022-23 annual report they would probably guess the subsidy was ~$22m that year (and more now) and if they paid attention to the move to the ACC they should know we are not getting a full media rights share for some time


RE: What the top 75 college sports programs are worth - chrisk - 12-19-2024

Not sure why a school would want a one-time cash infusion in return for the pressure of paying out profits in perpetuity.


RE: What the top 75 college sports programs are worth - fullmetal - 12-19-2024

(12-19-2024, 04:17 PM)chrisk Wrote:  Not sure why a school would want a one-time cash infusion in return for the pressure of paying out profits in perpetuity.
How desperate do you think kal is? ;)