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What’s Your College Team Worth?
Ohio State Overtakes Texas as the Most Valuable Program in College Football
The Wall Street Journal’s Jared Diamond examines which football programs are the most valuable in college football. Photo: Getty.
By
Jared Diamond
Updated Jan. 12, 2015 5:02 p.m. ET
24 COMMENTS
Even before the national-title game kicked off Monday night, Ohio State was the champion of college football in one aspect: At the bank.
The Ohio State program is worth more than $1.1 billion, the largest figure in the nation, according to an annual study. The Buckeyes have dethroned Texas, which had held the top spot for three straight years in the annual valuation by Ryan Brewer, an assistant professor of finance at Indiana University-Purdue University Columbus.
The Longhorns, who still led all programs in estimated revenues, are worth $972.1 million, up from $875 million a year ago. But that was only good for No. 3. Michigan finished second at $999.1 million. Ohio State and Michigan both benefited from much-improved cash flows over the past year.
From left, Ohio State's Darius Slade, Michael Hill and Tracy Sprinkle with the NCAA college football playoff championship trophy. ENLARGE
From left, Ohio State's Darius Slade, Michael Hill and Tracy Sprinkle with the NCAA college football playoff championship trophy. Associated Press
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To compile the numbers, Brewer analyzed each program’s revenues and expenses and made cash-flow adjustments, risk assessments and growth projections for each school. The resulting figures represent what the teams might fetch if they could be bought and sold on the open market like professional teams.
The valuations among the elite programs across the board shot up this year. There are eight teams worth more than $700 million, compared with two last year (Texas and Notre Dame). There were no teams worth more than $900 million last year; now there are four.
The rise can be attributed at least in part to the growing cost of professional franchises, leading to a spike in valuation for the top college teams. The Los Angeles Clippers sold for $2 billion last year. The small-market Buffalo Bills recently sold for $1.4 billion.
As for Oregon, Ohio State’s opponent Monday, the Ducks finished 18th, valued at $358.7 million.
Rank School Estimated Program Revenue* Intrinsic Values**
1 Ohio St. $93,036,878 $1,127,580,000
2 Michigan $112,291,813 $999,130,000
3 Texas $128,729,268 $972,110,000
4 Notre Dame $102,494,243 $936,380,000
5 Florida $99,454,773 $815,420,000
6 Oklahoma $103,038,214 $776,540,000
7 Alabama $120,142,639 $760,550,000
8 Georgia $85,937,753 $710,900,000
9 LSU $109,173,162 $659,180,000
10 Nebraska $74,862,938 $536,000,000
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Ohio State Overtakes Texas as the Most Valuable Program in College Football
The Wall Street Journal’s Jared Diamond examines which football programs are the most valuable in college football. Photo: Getty.
By
Jared Diamond
Updated Jan. 12, 2015 5:02 p.m. ET
24 COMMENTS
Even before the national-title game kicked off Monday night, Ohio State was the champion of college football in one aspect: At the bank.
The Ohio State program is worth more than $1.1 billion, the largest figure in the nation, according to an annual study. The Buckeyes have dethroned Texas, which had held the top spot for three straight years in the annual valuation by Ryan Brewer, an assistant professor of finance at Indiana University-Purdue University Columbus.
The Longhorns, who still led all programs in estimated revenues, are worth $972.1 million, up from $875 million a year ago. But that was only good for No. 3. Michigan finished second at $999.1 million. Ohio State and Michigan both benefited from much-improved cash flows over the past year.
From left, Ohio State's Darius Slade, Michael Hill and Tracy Sprinkle with the NCAA college football playoff championship trophy. ENLARGE
From left, Ohio State's Darius Slade, Michael Hill and Tracy Sprinkle with the NCAA college football playoff championship trophy. Associated Press
More College Football
To compile the numbers, Brewer analyzed each program’s revenues and expenses and made cash-flow adjustments, risk assessments and growth projections for each school. The resulting figures represent what the teams might fetch if they could be bought and sold on the open market like professional teams.
The valuations among the elite programs across the board shot up this year. There are eight teams worth more than $700 million, compared with two last year (Texas and Notre Dame). There were no teams worth more than $900 million last year; now there are four.
The rise can be attributed at least in part to the growing cost of professional franchises, leading to a spike in valuation for the top college teams. The Los Angeles Clippers sold for $2 billion last year. The small-market Buffalo Bills recently sold for $1.4 billion.
As for Oregon, Ohio State’s opponent Monday, the Ducks finished 18th, valued at $358.7 million.
Rank School Estimated Program Revenue* Intrinsic Values**
1 Ohio St. $93,036,878 $1,127,580,000
2 Michigan $112,291,813 $999,130,000
3 Texas $128,729,268 $972,110,000
4 Notre Dame $102,494,243 $936,380,000
5 Florida $99,454,773 $815,420,000
6 Oklahoma $103,038,214 $776,540,000
7 Alabama $120,142,639 $760,550,000
8 Georgia $85,937,753 $710,900,000
9 LSU $109,173,162 $659,180,000
10 Nebraska $74,862,938 $536,000,000
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That's more than the Bolts are worth. Not bad, especially considering they have $0 invested in payroll for talent.
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