WSJ: UM = 3rd most valuable football program

Submitted by zh2oson on

Link:

http://www.wsj.com/articles/how-much-is-your-favorite-college-football-…

#1 - OSU

#2 - Texas

#4 - Notre Dame

#5 - Alabama

#28 - MSU

FWIW, BIG has six of the top 20.

The most interesting tidbit of information from the article is that overall values have decreased due to (among other things) the scheduling of New Year's Eve games. In context, ESPN's declining subscriber base and cord-cutting probably also factor into projections, as conference-specific channels may have problems gaining traction going forward.

Also...all hail Dave Brandon and Jim Delany.

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ST3

January 11th, 2016 at 2:53 PM ^

Indiana University-Purdue University Columbus. It would seem that the same thought process that puts OSU #1 also gives us a university named Indiana University-Purdue University Columbus. How am I supposed to fit that on a sweatshirt?

Joined: 09/11/2010

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zh2oson

January 11th, 2016 at 2:52 PM ^

OSU's "value" decreased by 14% in the past year, which may be something. Or not. I think it portends a change in the money that will be available in the future. Perhaps the gravy train is slowing down.

Joined: 06/30/2011

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bcnihao

January 11th, 2016 at 3:10 PM ^

For CFB overall, decline in "value" despite increase in revenue and cash flow.  The following is the analyst's set of reasons for the decrease in value:  "The reasons for the drop were concerns about concussions and football’s safety, declining youth football participation, lack of resolution over pay-for-play concerns, and the scheduling of the College Football Playoff, which saw ratings for the semifinals fall by nearly 40% when played on New Year’s Eve this year, as opposed to New Year’s Day."

Joined: 10/05/2015

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bluebyyou

January 11th, 2016 at 4:11 PM ^

I thought the analyst's reasons for the drop in value in spite of increased revenue was the most salient point in the entire piece and it is a constant for every school across the study,

An annual compilation is done, for all public schools at least, which shows gross revenue, expenses and profit.  This would seem to be more telling than a study that places arbitrary values on issues that can only be speculated upon.

 

Joined: 09/07/2009

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bcnihao

January 11th, 2016 at 3:02 PM ^

"Brewer analyzed each program’s revenues and expenses and made cash-flow adjustments, risk assessments and growth projections to calculate what a college team would be worth on the open market, if it could be bought and sold like a professional franchise."  So, lots of guesswork.

Joined: 10/05/2015

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Everyone Murders

January 11th, 2016 at 3:15 PM ^

When I win the Powerball this week, I'm going to face some tough choices.  Buy PSU's program for $482M?  And do what with it? 

Or do I buy Michigan State, just to rehire John L. Smith and/or Bobby Williams?  Or buy Rutgers on the cheap, and take the tax losses?  So many choices ... .

I mean, winning that thing will be a blessing, but also a burden.  Suggestions?

Joined: 12/14/2010

MGoPoints: 65552

ST3

January 11th, 2016 at 4:10 PM ^

The cash value (if you take the payout) is ~$868M. Take 39.6% away in federal taxes and more in state  taxes and you are left with just enough, hypothetically, to buy PSU and remove all references to JoePa, about $500M. Frankly, I don't see why folks are getting so excited about this. /s

http://money.cnn.com/2016/01/08/pf/taxes/powerball-jackpot-tax-bill/

 

Joined: 09/11/2010

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lilpenny1316

January 11th, 2016 at 5:19 PM ^

OSU basically owns the entire state and ND does not have a conference to share the pot of money with.  Alabama does have to deal with Auburn but they are pretty far apart in distance and tradition.  I have a feeling that within the next couple years, we'll be right where we are, or up a couple spots and Sparty will be down in the 40s or 50s.

 

Joined: 11/19/2009

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