WSJ: 2015 college basketball teams revenues and valuations

[ud2]

Dayton has the best non-power 5 amount of revenue and the second best non-power 5 valuation, UD's valuation is behind you know who.


What’s Your College-Basketball Team Worth?


To calculate what a college team would be worth on the open market, if it could be bought and sold like a pro team, Brewer analyzed each major program’s revenues and expenses and made cash-flow adjustments, risk assessments and growth projections for each.



23 Dayton $16,620,935 $83,717,000



http://www.wsj.com/articles/whats-yo...ections_sports

[LowesFlyer]

Surprised to see the Big 10 with 11 out of the Top 27 and 12 out of the Top 33.

What is not surprising is that the two teams left out of those are Nebraska and Rutgers.

[NCkevi]

Surprised to see Butler below DePaul

Not surprised to see only one (not so) bid east team ahead of UD

[NJFlyr71]

Originally Posted by LowesFlyer Surprised to see the Big 10 with 11 out of the Top 27 and 12 out of the Top 33. What is not surprising is that the two teams left out of those are Nebraska and Rutgers.

Surprised to see the Cornhuskers but not the Scarlet Knights. Grew up not too far from the campus and there always seems to be a ambivalence concerning their sports. They always portrayed themselves as 'Ivy League' [yet they are not in that group].

Do they have some rabid fans? Yes. Did they have some success in BB and FB? Yes.

But I think down deep the faculty viewed that as a distraction to the higher cause that Rutgers (THE state university) was meant to fulfill.

PS They also have some very delusional fans as to their status in the big stage sports scene. Especially in their first year within the B10. If you have ever read their pre and post game comments during the FB season it was pretty hilarious what they expected and how they were shocked in the outcomes.

It was very typical east coast bias and their utter lack of understanding just what the Big 10 is.

[UACFlyer]

Only three privates ahead of UD, SU, DU and X.....and Villanova at #40?....and other promient NBE schools well below UD....and my other alma mater Northwestern one notch below UD, while UCLA is one notch higher.

Interesting. No doubt BB is a UD crown jewel....and should the women continue to advance the overall program is enhanced.

We're back! Now the hard part...sustaining it.

[Viperstick]

How is Northwestern's basketball program worth $83M? No offense to the Wildcats or the school, but with its lack of success and smallish arena (8,100), I wouldn't have guessed it was that high.

[224]

Texas at 30
South Florida at 35
Memphis 45
Gonzaga 48
VCU 58
Notre Dame 104

A few surprises in that list. I had no clue South Florida did that well and ND did that poorly.

I think it's a compliment to our program to be rated so high! Truthfully, when compared to comparable programs, I don't think we could ask for any better than 23.

In reality, we are probably helped a lot by the arena serving alcohol. I know there's only a handful of schools that do sell during games. I wonder what we would be at if we didn't sell booze at the arena? As great of a program we have, no doubt selling alcohol helps us in rankings like these.

[UDDoug]

Originally Posted by Viperstick How is Northwestern's basketball program worth $83M? No offense to the Wildcats or the school, but with its lack of success and smallish arena (8,100), I wouldn't have guessed it was that high.

Big 10 money

[Bill Elwood]

Originally Posted by 224 Texas at 30 South Florida at 35 Memphis 45 Gonzaga 48 VCU 58 Notre Dame 104 A few surprises in that list. I had no clue South Florida did that well and ND did that poorly. I think it's a compliment to our program to be rated so high! Truthfully, when compared to comparable programs, I don't think we could ask for any better than 23. In reality, we are probably helped a lot by the arena serving alcohol. I know there's only a handful of schools that do sell during games. I wonder what we would be at if we didn't sell booze at the arena? As great of a program we have, no doubt selling alcohol helps us in rankings like these.

Agree, really surprised by ND's relatively low ranking; not on yearly revenue, but on overall valuation.

[SeasonTicketFan]

UD's program would be worth more if there were more HQ companies located in the Dayton area. X has the benefit of some corporate sponsors that are located in Cincinnati.

[UACFlyer]

Originally Posted by SeasonTicketFan UD's program would be worth more if there were more HQ companies located in the Dayton area. X has the benefit of some corporate sponsors that are located in Cincinnati.

Dayton has been a city in steep decline for decades.....seems to have stabilized and begun a very modest recovery. UD has helped significantly with that.

The Chinese auto glass company that is renovating the old GM plant is a plus....need much more of that. Dayton has been designated Ohio's aerospace hub. But, unfortunately, aerospace is in decline.

Tough issues to deal with and reverse.

[224]

Originally Posted by SeasonTicketFan UD's program would be worth more if there were more HQ companies located in the Dayton area. X has the benefit of some corporate sponsors that are located in Cincinnati.

I don't know if the lack of HQ translates into lost revenue in sponsorhip as much as it does with a combination of lack of HQ in Dayton AND a limited number of luxury suites at the arena. UD needs to expand premium seating to really bring in more $$. Add more luxury boxes and re-route the concourse to add more lower level seating options is what really needs to happen. What other arena has a visible concourse running through the center of the arena? If UD can invest to rework concourse behind seats (think Cintas, US Bank, any other arena), think how much more space theyd have to turn existing concourse into more premium seating or lower level luxury boxes. $$$$$$$

I think UD does a great job of maximizing sponsorships. While more HQ may drive up advertising price, I dont think its by as much as you would guess. The arena isn't selling the naming rights, which is where the bulk of the $$ come from with Cintas center. Even if P&G, Chiquita, etc are in Dayton, are they doing much with College Basketball? Do they currently do much with X or UC? I don't know the answer but I can't imagine; I'd be curious to find out.

Pro-Source ticket office, Burke Orthodontist Smile of Game, Stafford Sink the Rock to win the Rocks, etc....all do a great job of tying in the business with what's being sponsored. I don't see a big corporation competing with those. Its the naming rights they'd be after.

[udx2]

UD did well at a valuation that is 5.0 times adjusted revenue. The most valuable team, Louisville, is at 7x adjusted revenue. For comparison, OSU is valued at a high 8.2x adjusted revenue, Syracuse at 6.6x and North Carolina at 6.1.

I wish I knew the adjustments that Ryan Brewer made. There is subjectivity in the valuation, just like any business valuation, and the WSJ states that "Brewer analyzed each major program’s revenues and expenses and made cash-flow adjustments, risk assessments and growth projections for each." Frankly, I have seen how "risk assessments and growth projections" can radically alter a valuation -- that can be a big issue in M&A transactions. But an interesting point is that UD had a higher multiplier than many schools, including the BE schools, with Marquette at 4.1x adjusted revenue, Pitt also at 4.1, and Villanova at 3.8. There must be some favorable factors at UD that he saw at UD.

[ruechalgrin]

Originally Posted by udx2 UD did well at a valuation that is 5.0 times adjusted revenue. The most valuable team, Louisville, is at 7x adjusted revenue. For comparison, OSU is valued at a high 8.2x adjusted revenue, Syracuse at 6.6x and North Carolina at 6.1. I wish I knew the adjustments that Ryan Brewer made. There is subjectivity in the valuation, just like any business valuation, and the WSJ states that "Brewer analyzed each major program’s revenues and expenses and made cash-flow adjustments, risk assessments and growth projections for each." Frankly, I have seen how "risk assessments and growth projections" can radically alter a valuation -- that can be a big issue in M&A transactions. But an interesting point is that UD had a higher multiplier than many schools, including the BE schools, with Marquette at 4.1x adjusted revenue, Pitt also at 4.1, and Villanova at 3.8. There must be some favorable factors at UD that he saw at UD.

For valuations, recurring revenue or near guaranteed revenue usually receives a higher multiple. Dayton fans have a history of packing UD arena even when the team was 4-26; we buy merchandise; etc. So one hypothesis is that Dayton's revenue stream is more stable than the teams receiving lower multiples.