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USC tops California in CNBC’s new ranking of the 75 Most Valuable College Athletic Programs for 2024.
The CNBC ranking, which was topped by Ohio State University, is an estimate of how top athletic programs fare as private equity firms seek to get into college sports. After speaking with sports bankers and people considering investing in college athletic programs, CNBC’s Michael Ozanian compiled the rankings, which range in valuation from about $150 million to an astonishing $1.3 billion. Ta.
Valuations were then calculated at 4 times revenue. This number is adjusted up or down based on factors such as television revenue, alumni and fan base size, name-image similarity (NIL trading) value, and the program’s dependence on student and school grants. Ta.
Big Ten and SEC programming performed best, Ozanian said, reflecting lucrative television contracts. Programs from two powerful conferences occupied 21 of the top 22 spots.
This ranking provides insight into how college athletic programs perform when private equity and venture capital firms such as College Sports Tomorrow, Smash Capital, and College Athletics Solutions buy into them. Provide. While such arrangements are common in professional sports, they are gaining more attention among college programs.
“I think that’s one of the things that private equity is looking at and one of the reasons why we made this valuation,” Ozanian said. “They look at the pros and say, ‘Hey, look at the interest in college football…with that passion and fan base, we can make more money off these things.’
California schools ranked on CNBC rankings
Here are the California schools ranked:
12. USC: Valuation: $923 million. Revenue: $212 million
23. Stanford: Valued at $687 million. $180 million in revenue
54. UCLA: Valued at $472 million. $105 million in revenue
62. University of California, Berkeley: valued at $386 million. $126 million in revenue
67. San Diego State University: Valued at $287 million. $104 million in revenue
Click here for the complete ranking of 75 schools.
Ozanian said one factor in particular caused USC to fall from the top 10 to 12th place.
“(It’s) doing very well. We have $212 million in revenue and it’s also one of the few private schools that we have,” Ozanian said. “What they do very well is NIL. They’re in the top third of all the schools we surveyed. It takes them out of the top 10 and lowers their revenue multiple a little bit. The thing is, they received a large amount of funding last year,” more than $5 million a year, which is relatively high for a top-tier school. ”
There were recurring themes in the rankings. That means schools with strong football programs, the biggest source of revenue in college sports, are at the top of the rankings.
Ozanian said Stanford’s football program and its transition from the Pac 12 to the ACC suggests a bright future in terms of revenue and ratings.
“Stanford is a school that typically has a solid football program every year,” he said. “They don’t promote their football programs as much, but Stanford is one of those schools, and they’re in the ACC. The ACC has a bigger TV deal than the Pac 12, so the revenue is It will go up, and the value will go up.”To go up. ”
Next up is UCLA at No. 54, which is well below crosstown rival USC but could move up, Ozanian said.
“That’s a big brand, right? When you think of the big brands in West Coast football, you have USC and UCLA right up there, but UCLA only had $100 million in revenue,” Ozanian said. “I think UCLA also has a big upside, especially though ticket revenue and TV revenue aren’t that great. It will close the gap with USC.”
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