As college athletics continues to evolve, the financial landscape is changing rapidly, with discussions around NIL (Name, Image, Likeness) deals and revenue sharing becoming more prevalent. Amid this transformation, CNBC has unveiled a fascinating list of the most valuable college football programs, highlighting the financial powerhouses that dominate the sport today.
Understanding the Valuation Methodology
CNBC’s list is not just a random assortment of teams; it reflects the current enterprise value of each program. To create this ranking, CNBC started with a base revenue multiple of four for all institutions and adjusted that figure based on various factors. These include conference affiliation, estimated NIL spending, school subsidies, alumni numbers, and other elements that can drive future revenue growth and profitability. This methodology provides a comprehensive view of how these programs stack up against each other.
Top of the Charts: Ohio State, Texas, and Texas A&M
At the pinnacle of this financial hierarchy is Ohio State, a program synonymous with success. The Buckeyes reported an impressive $280 million in revenue for the fiscal year 2023, placing them at the top of the list, just ahead of Texas A&M and Texas. Ohio State’s football team has consistently been competitive, contributing significantly to its overall valuation.
Not far behind, Texas boasts a valuation of $271 million, benefiting from its recent move to the SEC. The Longhorns have a rich athletic tradition and, with their football team making back-to-back appearances in the College Football Playoff, they are poised for continued financial growth.
Texas A&M is right in the mix, reporting $279 million in revenue. The Aggies have invested heavily in their program, including a staggering buyout to part ways with former coach Jimbo Fisher. While on-field success has been a bit elusive, the Aggies are determined to climb the ranks.
The Wolverines and the Crimson Tide
Following the top three, we find Michigan, with a valuation of $1.06 billion. The Wolverines have long been a financial powerhouse in college sports, reporting $230 million in revenue for 2023. Their storied history and large fan base ensure that they remain a top contender in the financial arena.
Another giant in college football, Alabama, continues to thrive under the legendary leadership of Nick Saban. The Crimson Tide’s success on the field has translated into financial success, making them one of the most valuable programs. With a diverse array of successful sports, including gymnastics and basketball, Alabama is a model of athletic excellence.
Georgia’s Rise and Notre Dame’s Legacy
Georgia has surged in recent years, thanks to the remarkable success of head coach Kirby Smart. After winning back-to-back national titles, the Bulldogs have solidified their status among the elite programs. Their financial future looks bright as they continue to attract top talent and maintain a winning culture.
Meanwhile, Notre Dame remains a financial juggernaut, thanks in part to its lucrative television deal. The Fighting Irish reported $224 million in revenue for 2023 and made a playoff appearance under coach Marcus Freeman. Their unique position in college football ensures they will remain a force in both athletics and finances.
Other Notable Programs
The financial landscape of college football also includes programs like Tennessee, which has found renewed success under coach Josh Heupel. The Volunteers reported $202 million in revenue, marking them as one of the twelve programs to surpass the $200 million threshold. Athletic director Danny White has played a crucial role in revitalizing the program.
Oklahoma rounds out the top ten with a valuation of $928 million. The Sooners have built a strong athletic program, including a powerhouse softball team. Despite some challenges on the football field under coach Brent Venables, their financial backing remains robust, with $199 million in revenue reported for 2023.
Looking Ahead: The Future of College Football Valuations
As we look beyond the top ten, programs like Penn State, USC, and LSU are also making their mark, showcasing the competitive nature of college football. With valuations ranging from $924 million for Penn State to $916 million for LSU, these institutions are not far behind the leaders.
The landscape of college athletics is shifting, and as NIL deals and revenue sharing become more entrenched, the financial dynamics will undoubtedly change. Programs that can adapt and innovate will continue to thrive, while others may struggle to keep pace.
In this ever-evolving world of college football, one thing is clear: the competition is fierce, and the stakes are higher than ever. Whether it’s through successful programs, strategic investments, or leveraging fan engagement, the race for financial supremacy in college athletics is just beginning. As fans, we can only watch with anticipation to see how these programs evolve and who will emerge as the next big player in the college football landscape.
