What's your team worth? WSJ says 139.7 million

[MspHawk]

http://online.wsj.com/article/SB10001424127887324391104578225802183417888.html?mod=wsj_share_tweet

I saw this on another board and thought it was interesting. The Wall Street Journal has a story today on the value of college football programs if they were like a professional sports franchise.

Among other factors, the study looked at each program's revenues and expenses and made cash-flow adjustments, risk assessments and growth projections for each school.

Anyway, found this kind of interesting. Hopefully this thread will avoid the usual sniping and cheap shots.

 

[Word]

I'm surprised to see Northwestern, Indiana, and Purdue ahead of us. Slightly surprised to see Illinois below us.
Would be interesting to see the exact formula used. Sounds like a lot of it was conjecture.

 

[Killjoy]

I'm surprised to see Northwestern, Indiana, and Purdue ahead of us. Slightly surprised to see Illinois below us.
Would be interesting to see the exact formula used. Sounds like a lot of it was conjecture.

All models are based on assumptions. Change the assumptions and you change the answers. I made a good living doing that.

 

[4four4]

This program has so underperformed over the years, it really shows me how much the program can really grow. If I am not mistaken the new stadium does nothing for the program? It looks like it.

 

[Gopher Bandanna Guy]

Yeah, it doesn't sound like facilities were factored in at all. Or geographic location. Or proximity to major sponsors.

Really, this seems like a rather silly exercise to me, especially if a number of factors that go into evaluating the value of a pro sports team are ignored here.

 

[Nate]

I thought private institutions kept that information private. If so, are those numbers just made up, I mean best guess?

 

[RodentRampage]

If the universities were to spin off their football teams as businesses, much of this "value" would collapse. If the Texas Longhorns were to become a minor league football team instead of the University of Texas' football team, it would be just another minor league football team.

 

[4four4]

I am under the impression NCAA Division one football is a minor league.