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WSJ: TCU football worth $76.6 million?

TopFrog

TopFrog

Lifelong Frog
Wall Street Journal: What Is Your Team Worth?

Never mind for a moment which college-football team is No. 1 on the field. Is Texas losing its grip on being No. 1 at the bank?

According to an annual analysis of the values of college-football programs, Texas remains the most valuable team in the sport. But the gap is narrowing: The Longhorns—whose 2011-12 valuation is $761.7 million—now are only slightly ahead of Michigan ($731.9 million). ...

http://online.wsj.com/article/SB10001424127887324391104578225802183417888.html

OB-VW798_COUNT0_G_20130106200910.jpg
 
HG73

HG73

Active Member
Makes the Big10's selection of #56 Maryland and #63 Rutgers even more puzzling. Guess they were just the best of what was available.
 
Opintel

Opintel

Moderators
These value numbers are based on what?

I used to deal, somewhat :cool:, in the use and recognition of smoke-and-mirrors...and this reeks of very creative accounting and use of imagination.

I say: BS to this list. :mellow:
 
Opintel

Opintel

Moderators
The Uniballer said:
http://www.google.co...moDOxqv3NnnLd6A
Click to expand...
Utilizing the parameters in the paper "Examining the Value of Sport Clubs", I'm sure this is reasonable for it's purpose (I'm not sure exactly what that is), even though it was originally used for professional teams. Trying to apply it to college programs is not valid - TCU being a prime example. Way too many holes, and discounting the paid for aspect of the facilities...and do the State Schools get a discount, too on cost to operate, because taxpayers are footing much of the $$$?

You could look at cash expenses versus income, but how do you calculate the value of labor? There is more, but this is clearly in the realm of BS journalism (and analysis).

Any input from our distinguished "giant heads"? :tongue:
 
F

froginaustin

Active Member
Opintel said:
These value numbers are based on what?

I used to deal, somewhat :cool:, in the use and recognition of smoke-and-mirrors...and this reeks of very creative accounting and use of imagination.

I say: BS to this list. :mellow:
Click to expand...

Assigning "value" to college program, whether a football program or an English department, is bogus. No one will buy either.

A ticket to a game or a tuition charge for a course is hardly a "sale" of a program. It's more like a licensing fee or rent, I suppose.

Although as soon as I typed the above, I remembered that someone apparently DID buy Wesleyan's law school. And for-profits sometimes buy financially failing colleges. For their academic accreditation? Their bricks and mortar?

But I still agree that the WSJ article is bogus, and will be until a football program-- hard assets and "goodwill" or whatever the intangibles would be called-- is sold by a willing seller to a willing buyer. With no arms' length sales for comparables, valuation is just a guess particularly with income-producing potential being so speculative and volatile.
 
notyalc

notyalc

Active Member
Who care what the programs are worth, it how much you win. If you go by winning percentage that chart would look entirely different.
 
Sangria Wine

Sangria Wine

Active Member
I'd assume they are valuing the programs based on their ability to generate revenue and profits...just like a normal business valuation. Assets are meaningful but return on them is a bit more important. Texas is no doubt a cash cow and frankly they probably leave money on the table in places.
 

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