Forbes on the Value of College Football Teams.

Terry O'Keefe · Nov 20, 2007

The University of Notre Dame Fighting Irish, worth $101 million, is the most valuable team in college football. Unlike the other programs on our list, Notre Dame's athletic department operates under the umbrella of the university and is not run as its own distinct entity. As a result, a much higher share of profits are retained by university for academic use. The football team's contribution to academics totaled $21.1 million for the 2006-2007 season – that's as much as the next five most valuable teams contributed to their respective schools combined. Operating independent of the conference system allows Notre Dame to keep the entire $9 million in annual television revenue it gets from NBC.

The University of Texas Longhorns, worth $92 million, was football's most profitable team last season, earning $46.2 million, of which $4.7 million went to academics. When the Longhorns play at home, Travis County sees an estimated $9.4 million of incremental spending associated with the game, a virtual tie with South Bend County during Notre Dame home games.

University of Texas merchandise royalties doubled to $8 million after the Longhorns won the national championship in 2006. Premium and club seating at Darrell K. Royal-Texas Memorial Stadium generates $12 million a year. The athletic department even added an exclusive space, dubbed the Centennial Room, which is reserved for boosters who contribute the most money to the program.

In fact, 17 of the 20 most valuable teams have undergone major stadium expansions and renovations over the last 10 years, and two others have renovation plans in the works. Premium seating has proved to be a valuable revenue stream that was non-existent at the time most aging college stadiums were constructed. Ohio State (Ohio Stadium) and the University of Tennessee (Neyland Stadium), for example, added 81 and 78 suites, respectively, in recent years. Both stadiums opened in the 1920s, predating even the forward pass.

For programs like the University of Michigan, with a stadium capacity of 107,501, the largest in the country, luxury suites are a much more feasible way to increase stadium revenue than building another crowded upper deck. The 31 largest college stadiums, on average, already have 11,000 more seats than a typical NFL stadium.

One of the strongest links tying the college and professional football in recent years has been corporate sponsorships. Both PepsiCo's Gatorade brand and apparel maker Under Armour use images of college and professional football side-by-side in commercials, leaving some to wonder whether Steve Spurrier's day job is to be the head coach of South Carolina or team click-clack. Gatorade sponsors five of the six major college athletic conferences, as well as the NFL, while sister company Pepsi Bottling Group is in its third year of a 10-year, $27 million deal with the University of Florida.

College programs have taken other pages from the NFL's playbook, but not without adding their own touch. Take seat licensing and naming rights. The University of Tennessee raised $16 million of the $21.2 million contributed to the Volunteer Athletic & Scholarship Fund in the last fiscal year through reservation fees for football tickets.

While college stadiums have historically been named after the team, school or home state, companies are now taking a prominent role. Look no further than the Papa John's Cardinal Stadium at the University of Louisville, named after the eponymous pizza company following a contribution by its founder. And there's the University of Minnesota's future home, TCF Bank Stadium.

New television arrangements will only further drive up college football team values in the future. Following the NFL's lead, the Big Ten Conference launched its own network this summer, the first cable outlet to reach 30 million homes in its first 30 days on air, despite charging carriers as much as $1 per subscriber. Big 12 Conference institutions will see a $16 million boast in TV revenue next year from existing deals with Fox Sports Net, owned by News Corp., and ESPN/ABC, owned by Walt Disney Co., with some schools projected to make as much as $10 million in 2008, based on their number of TV appearances and scheduling.
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The Table:

1. University of Notre Dame, Fighting Irish
Value: $101 million
Profit: $45.8 million
Conference: Independent
Head Coach: Charlie Weiss
Notre Dame's football program contributed $21.1 million to the university's academic programs last season, far more than any other college football team.

2. University of Texas, Longhorns
Value: $92 million
Profit: $46.2 million
Conference: Big 12
Head Coach: Mack Brown
University of Texas athletics earns $12 million annually from premium seating, a number that will rise with the addition of 44 luxury suites and 2,000 club seats in their stadium before kick-off next season.

3. University of Georgia, Bulldogs
Value: $90 million
Profit: $43.5 million
Conference: SEC
Head Coach: Mark Richt
Georgia's $60.3 million in football revenue last season was the highest in the Southeastern Conference.

4. University of Michigan, Wolverines
Value: $85 million
Profit: $36.2 million
Conference: Big 10
Head Coach: Lloyd Carr*
Michigan will add 83 luxury suites and 3,200 club seats to "the big house" next year at a cost of $226 million.

5. University of Florida, Gators
Value: $84 million
Profit: $38.2 million
Conference: SEC
Head Coach: Urban Meyer
The Gators' football revenue increased by $11 million, to $58.9 million, during their national-title season last year.

6. Louisiana State University, Tigers
Value: $76 million
Profit: $31.7 million
Conference: SEC
Head Coach: Les Miles
The addition of an eighth home game helped LSU's value increase 11% in one year.

7. University of Tennessee, Volunteers
Value: $74 million
Profit: $17.3* million
Conference: SEC
Head Coach: Phillip Fulmer
Four stadium renovation projects in 10 years added more than 10,000 seats and 78 suites to historic Neyland Stadium

8. Auburn University, Tigers
Value: $73 million
Profit: $33.9 million
Conference: SEC
Head Coach: Tommy Tuberville
Over the course of a season, Tigers home games result in an estimated $50 million of incremental spending in Lee County, Ala.

9. University of Alabama, Crimson Tide
Value: $72 million
Profit: $31.8 million
Conference: SEC
Head Coach: Nick Saban
Saban's $4 million average annual salary is highest in college football history, but still $500,000 less than he would have made if he remained with the NFL's Miami Dolphins.

10. Ohio State University, Buckeyes
Value: $71 million
Profit: $26.6 million
Conference: BigTen
Head Coach: Jim Tressel
At $59.1 million, the Buckeyes were first among BigTen teams in revenue last season, but, dubiously, also led all of college football in expenses. The Ohio State Athletic Department spent $32.5 million on football, 71% of which happened on game days.

11. University of Oklahoma, Sooners
Value: $70 million
Profit: $18.5 million
Conference: Big 12
Head Coach: Bob Stoops
The Sooners are reaping the rewards of increased revenue attributable to a 2004 renovation to the Gaylord Family Oklahoma Memorial stadium, which added 27 suites and 2,500 club seats.

12. University of South Carolina, Gamecocks
Value: $69 million
Profit: $28.9 million
Conference: SEC
Head Coach: Steve Spurrier
South Carolina's value increased 22% over the course of the last year, more than any other team in the top 20.

13. Pennsylvania State University, Nittany Lions
Value: $69 million
Profit: $29.4 million
Conference: BigTen
Head Coach: Joe Paterno
The Nittany Lions sell out their stadium, which is the second-largest in the country, every game.

14. University of Southern California, Trojans
Value: $53 million
Profit: $13 million
Conference: Pac 10
Head Coach: Pete Carroll
The most valuable program in the Pacific 10, USC has seen a 7% increase in team value over the past year.

15. University of Arkansas, Razorbacks
Value: $53 million
Profit: $19.3 million
Conference: SEC
Head Coach: Houston Nutt
Each Razorback home game results in $7.3 million of incremental spending throughout the county.

16. Texas A&M University, Aggies
Value: $50 million
Profit: $20.5 million
Conference: Big 12
Head Coach: Dennis Franchione
Texas A&M projects $9.5 million in broadcast revenue next season.

17. University of Washington, Huskies
Value: $50 million
Profit: $19.9 million
Conference: Pac 10
Head Coach: Tyrone Willingham
Athletic Director Todd Turner is lobbying for support of an expansion to Husky Stadium, as well as the creation of a new "Huskies Athletic Village."

18. University of Nebraska, Cornhuskers
Value: $49 million
Profit: $12.4 million
Conference: Big 12
Head Coach: Bill Callahan
Callahan, who once led the Raiders to the Super Bowl, has refused to step down at Nebraska despite being asked to do so by university officials.

19. Michigan State University, Spartans
Value: $44 million
Profit: $18.3 million
Conference: BigTen
Head Coach: Mark Dantonio
Michigan State plans to increase contributions to academics as a result of revenue from the recently launched BigTen Network.

20. University of Wisconsin, Badgers
Value: $43 million
Profit: $14.3 million
Conference: BigTen
Head Coach: Bret Bielema
Wisconsin fell five spots in the rankings owing to a $7.6 million drop in football profit since last year.
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George Krebs · Nov 20, 2007

This can't be right. Miami is not on that list. :lol: :lol:

You could probably make more money in Miami selling lemonade from a front yard stand. :lol: :lol: :lol:

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Forbes on the Value of College Football Teams.

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