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  1. #1
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    What's Your College Football Team Worth?




    http://online.wsj.com/news/articles/...02752525141772


    The ACC doesn't have a team in the top 20.
    Last edited by goldendomer; Mon Jan 06 2014 at 06:52 PM.

  2. #2
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    The reality is that the market value of all college football programs is $0. They are 100% illiquid assets and therefore have no market value. You can't value something that can't be sold. It's like placing a value on the Atlantic Ocean.

  3. #3
    Quote Originally Posted by TJ was Broke View Post
    The reality is that the market value of all college football programs is $0. They are 100% illiquid assets and therefore have no market value. You can't value something that can't be sold. It's like placing a value on the Atlantic Ocean.
    Interesting viewpoint considering schools sell their rights to televise their sporting events and sell merchandise on their behalf.

  4. #4
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    Quote Originally Posted by VTHokie2000 View Post
    Interesting viewpoint considering schools sell their rights to televise their sporting events and sell merchandise on their behalf.
    He's sort of right. The guy has done a study to say what teams would be worth if you could sell them. But you can't.

    Still, it is kinda interesting data.

  5. #5
    Quote Originally Posted by Pylons View Post
    He's sort of right. The guy has done a study to say what teams would be worth if you could sell them. But you can't.

    Still, it is kinda interesting data.
    I understand the point of the study. The part I was questioning was the poster's claim that a university has "no market value."

  6. #6
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    Quote Originally Posted by VTHokie2000 View Post
    I understand the point of the study. The part I was questioning was the poster's claim that a university has "no market value."
    I took his point to be "if there's no market, there's not a market value."

    From last year's comparable article:
    "The resulting figures represent what the teams might fetch if they could be bought and sold like pro franchises."
    http://online.wsj.com/news/articles/...25802183417888

    They can't be bought and sold, so, in reality they don't have "market value." Which is not to say they don't have value to their schools...obviously they do.

  7. #7
    Femoyer Hokie's Avatar
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    Quote Originally Posted by TJ was Broke View Post
    The reality is that the market value of all college football programs is $0. They are 100% illiquid assets and therefore have no market value. You can't value something that can't be sold. It's like placing a value on the Atlantic Ocean.
    Sure, but have some fun with it. Example: if there were all of a sudden no conference television contracts and each football program independently contracted all of their own revenue sources, this looks like a pretty good list.

  8. #8
    Quote Originally Posted by Pylons View Post
    I took his point to be "if there's no market, there's not a market value."

    From last year's comparable article:
    "The resulting figures represent what the teams might fetch if they could be bought and sold like pro franchises."
    http://online.wsj.com/news/articles/...25802183417888

    They can't be bought and sold, so, in reality they don't have "market value." Which is not to say they don't have value to their schools...obviously they do.
    But there is a market....the school's name. NBC has placed a "value" on the Notre Dame name in order to have exclusive rights to televise their home football games. Wal-Mart has placed a "value" on the VT name when it decides to sell a VT t-shirt for $19.99. Advanced Auto has placed a "value" on the Liberty name when it decides to purchase an ad slot for a program that airs on LUTV (or whatever the station's name is). It is no different than the "value" employers place on a degree earned associated with a specific college or university. All of these transactions are happening even though a public institution cannot be sold. A private institution can be bought, sold, and even declare bankruptcy.

  9. #9
    Pylons's Avatar
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    Quote Originally Posted by VTHokie2000 View Post
    But there is a market....the school's name. NBC has placed a "value" on the Notre Dame name in order to have exclusive rights to televise their home football games. Wal-Mart has placed a "value" on the VT name when it decides to sell a VT t-shirt for $19.99. Advanced Auto has placed a "value" on the Liberty name when it decides to purchase an ad slot for a program that airs on LUTV (or whatever the station's name is). It is no different than the "value" employers place on a degree earned associated with a specific college or university. All of these transactions are happening even though a public institution cannot be sold. A private institution can be bought, sold, and even declare bankruptcy.
    yes, all of that is true.

    When is the last time a college football team was bought or sold...that was the point..."market value" means what someone would pay to buy it. The "it" being valued here is the college football team.

    It's completely fine to say "if there was a market, the value would be xyz," as the researcher is doing.

    It's also completely fine to say "there actually is no market where college football teams are bought and sold, so the value is really zero."

  10. #10
    Quote Originally Posted by Pylons View Post
    yes, all of that is true.

    When is the last time a college football team was bought or sold...that was the point..."market value" means what someone would pay to buy it. The "it" being valued here is the college football team.

    It's completely fine to say "if there was a market, the value would be xyz," as the researcher is doing.

    It's also completely fine to say "there actually is no market where college football teams are bought and sold, so the value is really zero."
    Are you sure the value is based on the team? Or is the value being based on the "name" associated with the team? Because there is a big difference between the two.

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