Nine College Football Programs Receive Billion Dollar News Including OSU, Texas & Michigan
Story by Papiya ChatterjeeWell, looks like College Football is pulling an Oppenheimer, blowing up the old norms with NIL deals and transfer portals leading the charge. For example, despite a shaky season, Michigan is ninth nationally with 23 commitments, including Bryce Underwood, poised to be their star player. Meanwhile, Ohio State is showing off its recent $20 million investment following their championship win. But here’s the kicker: with 9 teams now hitting billion-dollar valuations, the sport’s financial arms race is redefining what it takes to stay on top.
So, Wall Street Journal reports typically focus on the business world. But Ryan Brewer, an associate professor of finance at Indiana University, thought why not release an analysis of the most valuable programs of college football? And wasting no time, ESPN’s Paul Finebaum hits X, sharing the list. Now we have Ohio State at the top with a $1.96 billion valuation. No wonder they pulled players like Will Howard out of the portal. Then, Quinshon Judkins and Jeremiah Smith. Following Bucks, we have Texas with a $1.9 B and Michigan with a $1.66 B valuation.
Now, as mentioned before, the Michigan Wolverines are really sucking up to the recruitment battle. And they are not afraid to spend money. After Bryce Underwood, their recent intel says they are aiming for offensive tackle Ty Haywood and five-star Zahir Mathis. The interesting part is they are ready to spend a big amount on them just like Underwood. And if you think that the Longhorns are any less in their recruitment after their key players like Isaiah Bond & Matthew Golden declared for the NFL, then you are wrong.
Because the Longhorns are trading aces for kings. Their roster looks quite loaded with five-star recruits like Jonah Williams, Justus Terry, and Kaliq Lockett. That pretty much explains their $1.8 billion valuation. However, let’s just not sleep on those teams like Georgia and Notre Dame—fresh off their title game loss to Ohio State—joining LSU, Penn State, Tennessee, and Texas A&M in cracking the billion-dollar club in Brewer’s study.
But this is more than just a short-term phenomenon. Brewer examined data spanning years, encompassing all 131 FBS teams, from powerhouses such as Ohio State to less prominent programs like Louisiana-Monroe. The takeaway? The sport’s financial powerhouses keep flexing, and the gap between the top and bottom keeps growing. What makes things even more interesting is the depth this valuation holds in this new era of football.
What this valuation means in the new College Football world
The devil is in the details, and Brewer’s study spares none, dissecting the economics of college football like a pro franchise. The analysis covers a wide range of factors, including revenue streams and operational stability, while also considering the significant impact of NIL deals. These deals have created a delicate balance for schools, as they need to compensate players while maintaining financial stability. The result, there has been a seismic shift in how programs operate, with equal importance placed on financial sustainability and athletic performance.Take Utah, for example. With a valuation of $425 million, it surpasses powerhouses like Oklahoma State and Texas Tech in the Big 12 conference. Their rise highlights a disciplined approach to growth, even as other programs focus on splurging. Brewer’s report shows how coaching salaries, once on a meteoric rise, have leveled off. It’s evident that schools like Utah are redirecting funds toward NIL deals and infrastructure, setting themselves up for success in a rapidly evolving landscape.
Moreover, private equity investments could be a game-changer for smaller programs. Brewer suggests that these outside funds could help schools without lucrative TV deals and strong branding. With such resources, they could invest in NIL packages, upgrade facilities, and close the competitive gap. For Utah, utilizing these resources could solidify its position in the college football hierarchy. The future of the sport may very well depend on how schools, regardless of their size, navigate this high-stakes financial arms race.
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