In the realm of collegiate athletics, the numbers are staggering—billions of dollars flow in from ticket sales, merchandise, broadcasting rights, and sponsorships. As private investors eye these lucrative programs, the question arises: how are these college sports programs evaluated in terms of worth? CNBC recently undertook the task of quantifying the value of college athletic programs, highlighting the immense financial potential of these organizations that generate significant revenue annually.
The exercise of valuation goes beyond mere revenue; it includes a host of other factors. Key to this analysis is the recognition that many of the most prestigious athletic programs come from the NCAA Football Bowl Subdivision (FBS), which includes institutions boasting powerful football teams. This selectivity ensures that only the most competitive programs, which attract top-tier talent and cultivate large fanbases, are considered.
Ohio State: The Crown Jewel of College Athletics
At the top of CNBC’s rankings of college athletic programs lies Ohio State University, with an astonishing valuation of approximately $1.27 billion. This figure is buoyed by the Buckeyes’ ability to generate $280 million in revenue for the fiscal year 2023, the highest reported income among all college athletic programs. Factors contributing to this impressive sum include a dedicated alumni network exceeding 600,000 members, a fanbase that swells to over 11 million, and generous contributions from boosters totaling nearly $60 million. Furthermore, Ohio State’s football games routinely attract audiences of over 100,000, solidifying the team’s reputation and financial viability.
The dominance of certain conferences in the rankings reveals much about the shifting landscape of college sports finance. The SEC (Southeastern Conference) and Big Ten Conference lead the charge, corresponding with their colossal media rights agreements. The SEC, in aggregate terms, represents an astonishing worth of $13.3 billion—averaging out to $832 million per school—while the Big Ten closely follows with a valuation of $13.2 billion, or $734 million per institution.
These financial figures illustrate how media assets heavily influence the economic viability of college sports programs. By contrast, other conferences like the Atlantic Coast Conference (ACC) and the Big 12 fare less favorably in terms of total valuations. The ACC is worth $9.6 billion overall, equating to an average of $562 million per school, while the Big 12 stands at $6.7 billion, or $420 million on average.
To arrive at these valuations, CNBC collaborated with Jason Belzer, a well-regarded figure in athletic program assessments. His organization, AthleticDirectorU, holds extensive data on the financials of college athletic programs, which forms the basis of the derived values. The figures stem from credible sources, including the Department of Education’s Equity in Athletics Data Analysis and the Knight Commission on Intercollegiate Athletics.
The valuation strategy employs a multipronged approach that starts with a basic revenue multiple of four for all institutions, factoring in influential variables such as conference affiliation, name, image, and likeness (NIL) expenditures, and institutional subsidies. By considering aspects like alumni networks and potential avenues for revenue growth, a nuanced picture of each program’s financial health emerges.
As the landscape of college sports continues to evolve, understanding the financial dynamics becomes increasingly essential—not just for universities, but also for investors drawn by the prospect of lucrative partnerships. With smart strategies and the right allies, college athletic programs can unlock their potential, transforming the compelling narratives of sport into powerful financial realities. The immense value attributed to programs like Ohio State serves as both a testament to their current success and an indicator of the growth opportunities that lie ahead.
The valuation of college athletic programs transcends surface-level revenue assessments; it embodies a complex interplay of community engagement, institutional history, and financial foresight. The era of collegiate athletics has arrived, and with it, a new wave of investment that promises both challenge and opportunity alike.
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