Staff Reports
Clemson won the College Football Playoff national championship last week, but the Tigers finished only 26th in the nation in terms of intrinsic values.
Ryan Brewer, an assistant professor of finance at IUPUC, released his annual college football valuations last week. Texas topped the chart at $1,105,493,378.
Brewer’s formula for estimating value involves analysis of historical cash flows and returns, estimated capital structures and historical and current economic conditions, as well as forecast future conditions. It also takes into account such factors as recent and historical team performance, population of the surrounding area and of the student body, stadium size and age, university endowments and the guaranteed salary of the head coach.
Ohio State, which was No. 1 each of the past three years, came in second at $1,048,166,317. Alabama, which lost to Clemson in the national title game, is third at $1,009,903,620.
Among the other two playoff teams, Notre Dame came in fifth at $913,401,562, and Oklahoma is seventh at $885,558,053. Brewer listed Clemson’s intrnisic value at $298,051,865.
Indiana University is No. 44 on the list for the second consecutive year at $181,988,355, while Purdue is No. 54 at $134,004,805. Ball State is 105th for the second straight year among the 115 FBS programs at $12,701,434.
