Study/Report: Indiana third-most valuable college basketball program

Hat-tip to Mike Pegram, proprietor of for pointing this one out on Twitter today. Found it interesting enough that I decided to share it.

According to this story by the Wall Street Journal Indiana would be the third most valuable program in college basketball if college basketball teams could be bought and sold like professional franchises. According to the story, the study was done by Ryan Brewer, an assistant professor of finance at Indiana University-Purdue University Columbus. Brewer, according to the story, “calculated the intrinsic valuations of 100 top Division I programs, including all 74 major-conference ones. Among other factors, the study examined each program’s revenues and expenses and made cash-flow adjustments, risk assessments and growth projections for every school.”

Indiana, according to the study, would be worth $130.8 million. Louisville, thanks to the capacity of the KFC Yum! Center, was ranked No. 1 at $211.5 million. Kansas is second at $140.6 million. Ohio State ($120.3 million), Arizona ($110.4 million), North Carolina ($109.8 million), Duke ($105.9 million), Virginia ($97.6 million), UNLV ($88.4 million) and Minnesota ($87.9 million) rounded out the top 10. No. 11 Wisconsin ($87.7 million), No. 18 Purdue. ($73.2 million) and — yes, really —No. 20 Northwestern ($66.0 million) give the Big Ten six schools in the top 20.


  1. Something’s not right with this model if Northwestern is worth more than Michigan St. or Michigan. I mean that just makes no sense in terms of market capitalization; how could NW possibly generate more capital over time, and create a resulting tangible net worth that’s greater than that of the Michigan or MSU ‘franchises’? Tangible net worth and goodwill in combination largely determine the market value of a pro franchise, and I can’t see how NW would outrank the Michigan schools. Regardless, it’s nice to see IU so near the top; that speaks to the appeal of the time across the entire state and fan base.

  2. no wonder that this professor is teaching at Indiana University-Purdue University Columbus and not in Bloomington. I find this study a little far-fetched.

    glad he had IU so high though.

  3. If this cat is selling crap like this to our young people their haul will be heavier and longer for it. Brewer should be embarrassed for his lack of understanding. If people actually pay $ for his class to learn this kind of stuff he certainly must be brilliant?

  4. Can’t say much positive for the assumptions which produce the numbers when KY is #16 but UNLV is #9 and MN #10. I will trade “my” MN for “your” KY; I will be rich; your wife will leave you (as she should).

  5. Is this what is happening to higher education in this country?

    Well, at least no one is suggesting that the ten strongest college basketball teams in the country must give their players to the “less fortunate” basketball teams. Or maybe, in the future, the best basketball teams will be forced to give points to the less fortunate basketball teams so that college basketball will be “fair” for everyone.

  6. Hey BeatPurdue, I assume you don’t know a lot about unlv’s program if you find it hard to believe that they are #9. Think about the state of las Vegas they have no other sports teams so the only team they have to support, buy merchandise of, and go watch is unlv. The have an incredibly nice arena that is so sold out every game that they even have courtside seats for sale so I actually thought unlv was low on the list but I’m not trying to be a jerk at all, just wanted to tell some facts.

    Let’s Go Hoosiers! Big Ten and NCAA get ready to get Hanner’d!!!

  7. I’ve been in Vegas for 17 years and I can tell you UNLV basketball is huge here.

    I wouldn’t call their arena “incredibly nice” though.

    And, they are trying to replace it.

  8. All think all the money blown on fixing up that football dungeon of follies called “Memorial.”

    Indiana should have broke ground for a beautiful basketball stadium long before one block of stone ever be added to the graveyard to the west.

    Hopefully Crean can call for mounting a cross to the top a new structure and it will get done in my lifetime. He should call the trustees into immediate meeting and put his powers to work.

  9. The new stadium should be dedicated to those that came to Indiana when she was nothing but ashes….dedicated to the entire roster of the 2008-09 team..dedicated to Tijan Jobe, Kory Barnett, Kipp Schutz, Tom Pritchard, Devan Dumes, Steven Gambles, Brett Finkelmeier, Verdell Jones, Danny Moore, Nick Williams, Malik Story, Jeremiah Rivers, Matt Roth, Kyle Taber, Lewis Broderick…young men that face brutal humiliation and brought us out the other side through hard work and unparalleled belief and determination…the “best of the best” to ever don the colors…the misfits, rejects, walk-ons, baseball players, and a handful of talented kids that could of went elsewhere, decent men of their word that honored their commitments to still come to the program though it was obliterated and left to shambles by an unjust NCAA headed by a bitter president with blatantly personal motivations a score to settle against Bloomington…..Build the new stadium..Get the blueprints finalized and let the people this great basketball state never lose their humble voice the true meaning of the game…let the court rule forever as a reminder to those men that stared a hoops hell in its face and never stopped in their faith in believing in the cream and crimson and the true honor of wearing the storied candy-stripes.

  10. HforH, certainly you understand the logic and necessity of investing in IU football. I can’t say I agree with the way every dime has been spent, but I believe IU had no choice but to upgrade the football facilities. Of course, time will tell if it was money well spent or not, but to do nothing would have doomed IU football to the dungeons of college sports, and IU could literally not afford that.

    Like it not, IU must increase revenue from football if it is to compete in the Big Ten. Football was neglected for way too long. It still has a long way to go, but at least the quality of the football facilities are no longer an embarrassment.

  11. It’s been discussed before but basketball money is pocket change compared to football money. Numbers vary but Duke was listed as #1 with $24 mil in basketball. Texas brought in $129 mil in football.

    That’s a big difference.

    I’m no finance officer but I’m guessing even IU should make more money in football than basketball.

    Thank God for Fred Glass (I hope).

  12. There is NO doubt AD Glass gets it. In fact FB revenues are up through recent years of direction under AD’s G & G.

  13. YouGot…, hey don’t ever assume, it is better to know. If you re-read my post, I did not say anything about UNLV’s rank of #9 or MN’s rank of #10. I did say that neither could rank ahead of KY (#16) in any meaningful comparison of “value”. The last attendance figures for 2011 show KY #1 (23,603), Syr #2, Louisville #3, NC #4, TN #5, BYU #6, WI #7 at 17,230, IU #12 at 15,259, UNLV #23 at 13,253, and MN #24 at 13,241. IU will go up to about “sold-out” capacity of 17,450 for 2012. Then you need to ask the TV executives about which teams they “prefer” for the best ratings. Again, KY will be way ahead of UNLV or MN. I am sure that people around Vegas love the “Runnin’ Rebs”. But people around the entire US love watching KY, IU, NC, Kansas, Duke, Syracuse, OH St, MI ST, etc. They also really respect WI even if they hate to actually watch them play.

  14. If IU does not increase football revenue, it might not affect IU basketball, but it will affect all the other non-revenue producing sports.

    So if you care about IU athletics, you have to care about IU football and how much money it brings in. It’s as simple as that.

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