World Stock Watch

The Billion-Dollar Business of College Sports

College athletics has become a lucrative industry, with top programs generating billions of dollars in revenue each year. Private investors are taking notice, seeking to tap into this lucrative market. But what makes a college sports program so valuable?

Ranking the Top 75 Most Valuable College Athletic Programs

A recent analysis has ranked the top 75 most valuable college athletic programs, excluding military academies and focusing on schools that participate in the NCAA Football Bowl Subdivision (FBS). The results are striking, with Ohio State University topping the list with an estimated value of $1.27 billion.

What Drives Value in College Sports

So, what contributes to a program’s value? Revenue is a significant factor, with Ohio State generating $280 million in 2023, the highest of any school. Other key factors include:

• Alumni Base: A large and engaged alumni base, such as Ohio State’s 600,000-strong network, can drive donations, ticket sales, and merchandise revenue.
• Fan Base: A massive fan base, like Ohio State’s 11 million-strong following, can fill stadiums and generate significant revenue from ticket sales and concessions.
• Boosters: Generous boosters, who donated nearly $60 million to Ohio State last year, can provide critical funding for athletic programs.
• Conference Affiliation: Membership in powerful conferences like the SEC and Big Ten, with their massive media rights deals, can significantly boost a program’s value.

Conference Valuations

The top conferences dominate the rankings, with:

• SEC: Worth an estimated $13.3 billion, with an average value of $832 million per school.
• Big Ten: Worth an estimated $13.2 billion, with an average value of $734 million per school.
• ACC: Worth an estimated $9.6 billion, with an average value of $562 million per school.
• Big 12: Worth an estimated $6.7 billion, with an average value of $420 million per school.

The Data Behind the Rankings

The valuations are based on data from the Department of Education’s Equity in Athletics Data Analysis and the Knight Commission on Intercollegiate Athletics, as well as expert insights from Jason Belzer, publisher of AthleticDirectorU. The rankings incorporate a range of factors, including revenue, conference affiliation, estimated NIL spend, school subsidies, and alumni base, to determine each program’s enterprise value.