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University Athletic Departments Revenue & Spending

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DallasHusker;1834666; said:
Interesting, partially for the striking differences when compared to the Forbes Magazine "valuation" of the football programs. Not sure if your numbers are football, or overall athletic department, but here's the Forbes list - this came out in January 2010, so a new listing should be out in a month or so.

1. Texas Value: $119 million Profit: $59 million
2. Notre Dame Value: $108 million Profit: $38 million
3. Penn State Value: $99 millionProfit: $50 million
4. Nebraska Value: $93 million Profit: $49 million
5. Alabama Value: $92 million Profit: $38 million
6. Florida Value: $88 million Profit: $41 million
7. LSU Value: $86 million Profit: $39 million
8. Ohio State Value: $85 million Profit: $36 million
9. Georgia Value: $84 million Profit: $45 million
10. Oklahoma Value: $83 million Profit: $40 million
Methodology and all top-20 rankings here:

http://www.forbes.com/2009/12/22/mo...l-teams-business-sports-college-football.html
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jimotis4heisman;1834679; said:
heres the rest of that list.

11-michigan
12-south carolina
13-tenn
14-auburn
15-usc
16-msu
17-arkansas
18-texas am
19-wisc
20-ok st



well the forbes list "values" football teams as if they were publicly traded stocks, versus revenue for all sports
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Thanks! I got tired of laboriously copying/pasting/reformatting one line at a time from different slides. :)

From that complete top 20 list of "most valuable college football teams, its rather interesting to look at by conference:

SEC - 8
Big 10 - 6 (including Nebraska)
Big XII - 4
Notre Dame - 1
PAC-10/12 - 1
Big East - zero
ACC - zero
all other conferences - zero

If you give #1 20 points, #2 19, etc - all the way down to 1 point for #20 and then add up a conference value "score" its even more striking:

SEC - 85
Big Ten - 65
Big XII - 35
Notre Dame 19
"rest of the world" - 6

Once you get beyond the SEC & Big Ten, there isn't much left! And realistically, the only reason Okie State is on the list is because of the close to $100 million that T. Boone Pickens has personally poured into the program the past few years.
 
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Big Ten Financials '10-'11

The next conference we?re looking at is the Big Ten. The ACC, Big XII, Big East and C-USA have been previously posted. The chart is sorted by ?10-11 profits for each football and basketball program from greatest profit to least. The ?% Invested? column shows how much of the specific sport?s revenue goes back into that specific sport. Please read below before viewing the financials.

.../cont/...
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big-ten-10-11.jpg
 
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The NCAA?s investigations and sanctions against Ohio State have prompted Forbes to lower the program?s value in the magazine?s latest financial rankings of the nation?s college football programs.

Ohio State ranked eighth nationally with a value of $85 million the last time the magazine released its rankings, in December 2009. OSU now ranks No. 13 with a value of $78 million. The explanation?

?Ohio State will not play in a BCS bowl game this year, the first time since the 2004 season, and is banned from bowl game participation next season,? Forbes wrote. ?The loss of top bowl-game payouts may lead to future decreases in team value.?

Texas remained firmly entrenched in the magazine?s top spot with a value of $129 million, up from $119 million two years ago. Notre Dame ($112 million), Penn State ($100 million), LSU ($96 million) and Michigan ($94 million) round out the top five.

?Texas football generated $65 million for its athletic department, $15 million more than any other school,? the magazine explained. ?That athletic value helped offset the fact that the Longhorns didn?t make a bowl game last season.?
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http://www.dispatch.com/content/stories/sports/2011/12/30/rumblings-12-30-art-g7ifemb9-1.html
 
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Interesting that the Penn State scandal didn't downgrade their status in the eyes of Forbes despite the school having sponsors pull out, the boosters being up in arms threatening to stop supporting the program (because Paterno got fired incidentally, not because of the coverup) the state of PA, the Federal Government, the NCAA and the Big Ten all investigating.
 
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?Ohio State will not play in a BCS bowl game this year, the first time since the 2004 season, and is banned from bowl game participation next season,? Forbes wrote. ?The loss of top bowl-game payouts may lead to future decreases in team value.?
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OK, I have a question for the sanctions gurus. Ohio State doesn't make any more money for appearing in a BCS bowl than Indiana does for sitting home since the Big Ten puts all bowl money into the pot to be divided equally among all schools regardless of what bowl they appeared in or even if they appeared in a bowl at all.

If we're serving a bowl ban, and under ncaa rules, do we still get our split of the pot or are we forced to forego all conference bowl money.
 
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Muck;2074475; said:
Interesting that the Penn State scandal didn't downgrade their status in the eyes of Forbes despite the school having sponsors pull out, the boosters being up in arms threatening to stop supporting the program (because Paterno got fired incidentally, not because of the coverup) the state of PA, the Federal Government, the NCAA and the Big Ten all investigating.
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That was interesting - the original Forbes article makes clear they are looking backwards in their reporting.
Maintaining its third-place rank from our 2009 list is Pennsylvania State University. This year?s ranking were not impacted by the Jerry Sandusky scandal, but we expect the team to fall quite a bit in future rankings. Cars.com and an estimated half-dozen other companies pulled their ads from telecasts of Penn State games after the scandal broke. Paint company Sherwin-Williams has even removed its logo from the backdrops of Penn State press conferences. The good news for Penn State is that major sponsors like Pepsi and Nike have yet to jump ship. The loss of those sponsors would seriously hurt the school?s athletic revenue.

Patrick Rishe, a Forbes contributor and Professor of Economics at Webster University, estimates that Penn State athletics stands to lose $20 million to $30 million in the long term as a result of the Sandusky scandal. Rishe also suggests that the loss of alumni contributions and game-day income may cost the football program $5 million to $10 million each year. Penn State?s football team will also take a hit from the loss of major recruits, three of whom have already withdrawn their commitments to the school. It seems almost certain that Penn State?s reign as a top-earning program is coming to an end.
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Put another way, the impact on Penn State of Sandusky and his back-street biebers will be felt in years to come. At $20 Million (before a major drops out) that is a significant hit.

If one of the majors (Pepsi, Nike) starts cutting back then you have cataclysmic financial fall-out I guess.
 
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ORD_Buckeye;2074480; said:
OK, I have a question for the sanctions gurus. Ohio State doesn't make any more money for appearing in a BCS bowl than Indiana does for sitting home since the Big Ten puts all bowl money into the pot to be divided equally among all schools regardless of what bowl they appeared in or even if they appeared in a bowl at all.

If we're serving a bowl ban, and under ncaa rules, do we still get our split of the pot or are we forced to forego all conference bowl money?
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This is just a guess, but it may be that with tOSU out of the mix, then there is a better chance there will only be one B1G team (conference champ) going to a BCS game. In many of the years where we were an at-large team, there was no one else nearly qualified from our conference to have gone in our place.

Next year we have as good a chance as anyone to win the conference. If that happens, we can't go, meaning the runner-up would go in our stead. How good are the chances that the B1G number three team would be chosen over all other conferences number two team? IMO, not good.

That would mean the conference would lose all the money from the second bowl, hence the rating downgrade.
 
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How The Pac-12 And Big Ten Plan To Change College Sports

There will be no lead story on ESPN or in major newspapers or a Tebow-esque fascination about the Pac 12-Big Ten collaboration.

What collaboration you ask? There was an underpublicized agreement in the twilight of 2011 to enhance long-term scheduling of games across all sports among all 24 institutions within those two conferences. This is no big deal on the surface. There is no billion dollar figure attached. In fact there is no financial number at all. And there are no specified terms to champion as being precedential. There is just an agreement to pursue increased scheduling of games between the conferences, akin to a non-binding letter of intent in a business joint venture. And that is what this is, but it is more than that. It may bring nearly hedge-fund-like money and saliently, there is what every business wants: new revenue streams from emerging markets.

.../cont/...
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MightbeaBuck;2074551; said:
This is just a guess, but it may be that with tOSU out of the mix, then there is a better chance there will only be one B1G team (conference champ) going to a BCS game.
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Not likely, given the TV sets that are active in the B1G footprint.

Ultimately what Forbes says about the Ohio State athletic machine means pretty much nothing. What matters is the revenue and expense, which Forbes has nothing to do with. But it's clear that Gene Smith recognized the importance of Buckeyes football winning, and winning big, on funding our many sports at tOSU.
 
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