IUPUC professor releases college basketball valuations

Kentucky, Kansas, Louisville and Duke are the nation’s top four college basketball programs in terms of value, but none were in attendance for last weekend’s Final Four.

And the No. 5 valued program —Indiana University at $196.2 million — didn’t even make the NCAA Tournament.

Those were the findings of Ryan Brewer, assistant professor of finance at IUPUC. Brewer annually charts values of Division I college football and basketball programs.

Among teams reaching this year’s Final Four, Michigan State had the highest value at No. 20. Virginia is ranked No. 36, Auburn No. 52 and Texas Tech No. 62.

Purdue, which came within a buzzer-beater at the end of regulation of making the Final Four, came in No. 12 at $124.7 million.

Butler is ranked No. 59 at $43.5 million, and Notre Dame is No. 107 at $14.7 million. Evansville is No. 127 at $11.5 million, Valparaiso is No. 130 at 10.6 million, Ball State is No. 147 at 8.6 million, Indiana State is No. 157 at $7.7 million, Purdue-Fort Wayne is No. 158 at $7.6 million and IUPUI is No. 169 at 6.2 million.

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, arena size and age, university endowments and the guaranteed salary of the head coach.