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  1. #11
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    Quote Originally Posted by VTHokie2000 View Post
    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.
    Quote Originally Posted by Pylons
    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
    I'm sure the value of the name is part of it...the valuation of the team's worth would be based on how much income it can generate from tickets, donations, merchandise, tv contracts, bowl payouts, etc.

    btw, the guy holds a "Ph.D., The Valuation of Sports Businesses, Indiana University, 2011"...there's one you don't see every day!
    http://www.iupuc.edu/academics/divis...s/ryan-brewer/

  2. #12
    Quote Originally Posted by Pylons View Post
    I'm sure the value of the name is part of it...the valuation of the team's worth would be based on how much income it can generate from tickets, donations, merchandise, tv contracts, bowl payouts, etc.

    btw, the guy holds a "Ph.D., The Valuation of Sports Businesses, Indiana University, 2011"...there's one you don't see every day!
    http://www.iupuc.edu/academics/divis...s/ryan-brewer/
    I would think the name is a huge part of it because without it then a program has no public identity or history. Texas could have gone 0-12 this year and it still would have been the most value collegiate football program because "it's Texas." If the value was based on the state of the current program, then one would think Florida State would have been ranked higher.

    Very true you don't see that every day. I would think that would limit his options on what he could do professionally with it.

  3. #13
    Quote Originally Posted by VTHokie2000 View Post
    I would think the name is a huge part of it because without it then a program has no public identity or history. Texas could have gone 0-12 this year and it still would have been the most value collegiate football program because "it's Texas." If the value was based on the state of the current program, then one would think Florida State would have been ranked higher.

    Very true you don't see that every day. I would think that would limit his options on what he could do professionally with it.
    Then again, what do you think the value of South Carolina was, pre-Spurrier? Not 17th-best, I'm sure.
    No trees were harmed in the making of this post. However, billions of electrons were horribly inconvenienced.

  4. #14
    Quote Originally Posted by Freddyburg Hokie View Post
    Then again, what do you think the value of South Carolina was, pre-Spurrier? Not 17th-best, I'm sure.
    I don't disagree that the current state of a program can have a big impact on a program's value. However, I would not consider South Carolina a "blue blood" in college football. For the "blue bloods," their history has a much greater impact on their current value than the current state of the program. The Top 7 could all go 0-12 this past year and it would not have a significant impact on their current value (meaning they would have still finished in the Top 7 or at worse Top 10). If South Carolina had gone 0-12, then I am not sure South Carolina would have remained in the Top 20. They might have even fallen out of the Top 25.

  5. #15
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    Quote Originally Posted by VTHokie2000 View Post
    I would think the name is a huge part of it because without it then a program has no public identity or history.
    It's just hard/impossible to separate the two. People spend a lot of money on "Virginia Tech Football." Are they spending it because "Virginia Tech"? because "Football"? (probably some mix and it's different for all of us.) If they changed the name to "Virginia Skool of Kool Football," but all of the other ties to the university remained constant would people change their behavior (a lot of people would hue and cry, some would actually change their spending...most probably wouldn't).

    You can sell the name (well, the rights to use the name), so certainly the name has value...but that doesn't net you ticket revenue, donations, tv contracts, etc. that only the football team can generate.

    The other element is that even where there really are "markets" for things like this, the supply and demand pool is so small and the emotion involved is so potentially high that some "objective" valuation is mostly academic. If you always wanted to own an NFL team and acquire the means to do so, the supply is awfully limited (especially if you've got typical fan in you and only want to own certain teams or would refuse to own others). The demand for NFL teams is a pretty small pool as well...only so many owners out there with the desire and the financial wherewithal.

    It's sorta like the Barrett-Jackson auto auction that's about to take place. There are only so many of those rare collectible cars out there and only so many people who really want and can afford them. You even have charity cars there that are kinda like college football teams...someone will buy the car, but it'll be a "donation" and the value will be some part "car" (football team) and some part "cause" (name of the football team)

  6. #16
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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.
    I completely forgot about this comment that I made. Pylons does a great job explaining my position. The "value" of the teams as presented is their value if they were bought and sold on an open market. It's an interesting and insightful exercise, but you have to have a market that buys and sells in order for there to be an actual, true value. Like I said, it's like valuing the Atlantic Ocean--there are countless ways to monetize the Atlantic Ocean as Texas has found countless ways to monetize its brand, but as far as I'm aware, no one has ever purchased the value of an ocean's cash flow. To "value" an ocean is an academic exercise--it has value in understanding its level of importance to its users but it has no value in determining an actual market value since there never will be a buyer.

    Pylons goes on to make a great point about NFL teams--they can run all the numbers they want, but ultimately the sales price of a professional sports league will come down to how much an extraordinarily wealthy individual values the team personally. Daniel Snyder, for example, was a huge, lifelong Redskins fan who was young and massively wealthy. There's a whole lot of "good will" that went into the final purchase price.
    Last edited by TJ was Broke; Tue Jan 07 2014 at 03:23 PM.

  7. #17

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    My team is worth $100 more in 2014 than 2013 because there are 7 home games instead of 6.

  8. #18
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    Quote Originally Posted by laphroaig View Post
    My team is worth $100 more in 2014 than 2013 because there are 7 home games instead of 6.
    don't forget the parking pass and the concessions

  9. #19

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    Quote Originally Posted by Pylons View Post
    don't forget the parking pass and the concessions
    Forgot those and now we'll have to walk by that damn trailer selling Hokie gear near the southwest gate another time, too.

  10. #20

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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.
    Didn't PSU buy a law school? I believe universities have been bought and sold in toto, albeit rarely.

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