What college football teams are worth - a lot! - and where Florida teams rank
Wake up and good morning. The University of Florida has the third most valuable college football team in the country, valued at a shade under $600 million. So says an annual analysis of major college football team values done by Ryan Brewer (photo, right), an assistant finance professor at Indiana University-Purdue University Columbus. Brewer's rankings showing UF at No. 3 behind No. 2 Michigan ($731.9 million) and No. 1 Texas Longhorns ($761.7 million) published this week (read more) in the Wall Street Journal. Michigan's value, says Brewer, is surging.
(Note: This ranking was created before Monday' night's crushing victory by the University of Alabama over Notre Dame, so keep that in mind as values undoubtedly adjust according to team performance. In this ranking, Alabama ranked by value at No. 8, worth $476 million, and Notre Dame was No. 4, worth $597.4 million.)
Why do we care? Because college football is big business and a clear factor in determining the prestige and fundraising power of many schools. There's a good reason by the University of South Florida is trying to raise the caliber of its football team. For better or worse, it's one (of many) legitimizing attributes that help raise the profile and sense of competitive pride in big public universities and many private colleges.
Consider Penn State. Last year, its team was valued higher than the University of Florida. This year, its value is half that of UF's thanks, of course, to the coaching scandal.
If the Gators of UF are the Big Money Machine in Florida college football, who's next in the state pecking order? Here's the breakdown of some major football team values in the Sunshine State, based on Brewer's analysis.
No. 33: Florida State University - $159 million.
No. 34: University of Miami - $157.7 million.
No. 53: University of South Florida - $101.2 million.
A year earlier, USF boasted a higher rank (49th) but a far lower value ($38.9 million), an apparent indication of the fast escalation in college football team values.
No other Florida teams were ranked this year among the 69 schools published by the Journal.
What does Brewer consider when ranking team values? Each football program's revenues and expenses, plus cash flow, risk assessments and growth predictions. The team values are as if they are for sale.
- Robert Trigaux, Business Columnist, Tampa Bay Times