A new champion has emerged in college sports: the University of Texas at Austin. Its athletic program is now valued at $1.48 billion, a 16% increase from last year. In fiscal 2024, Texas generated $332 million in revenue, leading all schools. Donor contributions made up $137 million of that, which is a stunning 53% growth compared to 2023.
Ohio State University, last year’s top program, has dropped to second place. Its valuation is now $1.35 billion, a 2% increase. However, Ohio State’s revenue has decreased by 9% to $255 million, largely due to two fewer home football games last season.
According to CNBC, the total worth of the 75 most valuable athletic programs is $51.22 billion, a 13% rise from last year. These programs generated a combined revenue of $11.84 billion in fiscal 2024, an 8% increase from the previous year.
Continuously rising media rights fees for college sports, particularly football and basketball, are fueling these growing valuations. For example, the Big 12 recently struck a deal with Fox and ESPN, worth about $380 million a year—almost double its prior contract. Furthermore, ESPN is set to pay $1.3 billion annually for the College Football Playoff, which starts in 2026, marking a significant increase from past agreements.
This momentum creates opportunities for colleges. Patrick Crakes, a media rights expert, believes college football is nearing a turning point, likely expanding to a 16-team playoff soon to capture even more revenue. Additionally, schools might seek external funding to aid in settling a large NCAA class-action lawsuit and to compensate current student-athletes under new Name, Image, and Likeness (NIL) laws. The NIL market for college athletes is expected to balloon from $1.17 billion in 2024 to $2.55 billion by 2026, according to Opendorse.
The University of Utah recently became the first athletic program to accept private equity funding, indicating a shift in how colleges may manage their finances. Various schools are also exploring options to sell portions of their media and sponsorship rights in exchange for immediate capital.
For more details, readers can check the comprehensive list of rankings conducted by CNBC, which evaluated the fiscal health of athletic programs based on official databases and expert insights. This evaluation considers factors like conference affiliation and potential for revenue growth.
Source link
Breaking News: Business,Colleges and universities,Private equity management,Sports,Media,business news
