Syracuse football worth $255MM

[Willy75]

According to a survey in today’s WSJ. No. 49 in the country. Surprising the number of programs (mostly lower ranked ones but including one on the banks of the Raritan) listed as having zero positive cash flow.

 

[Nicknack]

What exactly does that mean?

 

[Willy75]

What exactly does that mean?

The article says value if it could be sold on the open market like a professional franchise. The author looked at “top line revenue, growth and drivers of cash flow and makes projections about the sustainability of the operation “. Looked at years of data.

 

[AcAndAc]

What exactly does that mean?

Somewhere between nothing and less than nothing.

 

[supp]

According to a survey in today’s WSJ. No. 49 in the country. Surprising the number of programs (mostly lower ranked ones but including one on the banks of the Raritan) listed as having zero positive cash flow.

Rutgers athletics recently reported a $70-plus million loss for the past fiscal year despite $60 million in B1G revenues.

 

[Nicknack]

Just for proper context, looking online, Ohio State is worth 1.3 to nearly 2 billion (depending on the source).

 

[NJneer12]

Rutgers athletics recently reported a $70-plus million loss for the past fiscal year despite $60 million in B1G revenues.

link? I haven't seen this one yet lol

 

[MSOrange]

Rutgers athletics recently reported a $70-plus million loss for the past fiscal year despite $60 million in B1G revenues.

 

[atlanticuse]

https://www.wsj.com/sports/football/college-football-ohio-state-revenue-value-5510e348?mod=hp_lead_pos10

Ranking | School Name | Revenue | Cash Flow | Enterprise Value

 

[Blanko97]

https://www.wsj.com/sports/football/college-football-ohio-state-revenue-value-5510e348?mod=hp_lead_pos10

Ranking | School Name | Revenue | Cash Flow | Enterprise Value

View attachment 248879

I don't believe for a second Clemson is worth less than Maryland unless they are assuming that Underarmour would continue to give money to a for-profit entity.

 

[AcAndAc]

I don't believe for a second Clemson is worth less than Maryland unless they are assuming that Underarmour would continue to give money to a for-profit entity.

A combination of market and market penetration. Although Maryland and South Carolina have similar populations, Clemson has to split the state with South Carolina. And nearby Georgia, etc. I just hope that they do not see this as the ACC's fault and sue to get out... oh wait...

 

[djorange1989]

Rutgers athletics recently reported a $70-plus million loss for the past fiscal year despite $60 million in B1G revenues.

To be fair, all of those bananas they have to ship in to feed Coach Shaved Ape can get expensive

 

[orangemass]

A combination of market and market penetration. Although Maryland and South Carolina have similar populations, Clemson has to split the state with South Carolina. And nearby Georgia, etc. I just hope that they do not see this as the ACC's fault and sue to get out... oh wait...

What is a market without market penetration?

 

[Millhouse]

These valuations are so goofy. No one buys or sells college football teams so no one has any idea what they'd fetch

 

[OburgOrange]

Basketball must be huge considering the savings from taking the bus to roadies

 

[Capt. Tuttle]

What is a market without market penetration?

A virgin market?

 

[jr4750]

These valuations are so goofy. No one buys or sells college football teams so no one has any idea what they'd fetch

Apparently some VCs are interested in doing just that.

 

[CbusCuse]

https://www.wsj.com/sports/football/college-football-ohio-state-revenue-value-5510e348?mod=hp_lead_pos10

Ranking | School Name | Revenue | Cash Flow | Enterprise Value

View attachment 248879

Our ratio of Cash Flow to Revenue is pretty impressive and the best on the list for those visible.

 

[HtownOrange]

What is a market without market penetration?

Rutgers.

 

[FloridaCuse]

Basketball must be huge considering the savings from taking the bus to roadies

Are they taking the bus to the games in California?

 

[djorange1989]

Apparently some VCs are interested in doing just that.

Yeah that is what has been said, but I don’t know why anyone would buy into a college football program until there are more cost certainties (ie collective bargaining to put in some guardrails, players signed to multi-year deals etc). It’s a mess right now

 

[General20]

Yeah that is what has been said, but I don’t know why anyone would buy into a college football program until there are more cost certainties (ie collective bargaining to put in some guardrails, players signed to multi-year deals etc). It’s a mess right now

I think some want to buy it because it's a mess (with the potential to earn a lot more if run right). Buy low, sell high and all that.

 

[Niastri]

Our ratio of Cash Flow to Revenue is pretty impressive and the best on the list for those visible.

If I'm attempting to valuate a for profit company traded on the stock exchanges, one of the first things I'm looking at is actual profits. Syracuse has far more cash flow than other companies (programs) with much higher revenues. I don't know how the Wall Street Journal justifies that aberration when ranking Syracuse so low. Is it merely because they don't think Syracuse's market justifies a higher value? If so, they are putting feelings ahead of data! Which kind of invalidates everything they are doing here.

Besides, Syracuse isn't huge, but it's estimated as the 88th biggest television market, with a population of 871k. It also is a 4-5 hour drive to at least 5 really major population centers.

On a related note, Gross was kind of ridiculous in a lot of what he did, but his push to rebrand Syracuse as "New Yorks College Team" was one thing I wish that had continued after his replacement. If the college realignment powers that be give us even a partial share of credit for NYC TV when the chairs stop moving, we'll have a much better chance of being in one of them.

Of course, having winning basketball and football programs matters more...

 

[Willy75]

Interestingly the school that the BiG brought in to tap the Metro NY market is operating at a huge deficit. Also, if you look at the schools ranked lower than SU there's an alarming number that have zero positive cash flow. That'll have interesting implications as the shape of college fb continues to evolve.

 

[NJneer12]

Besides, Syracuse isn't huge, but it's estimated as the 88th biggest television market, with a population of 871k. It also is a 4-5 hour drive to at least 5 really major population centers.

So...within a 5 hour driving "radius" of Syracuse:

48 Million people. Boston, Providence, NYC, Philly, Buffalo, Rochester and Albany sprawl is also significant. And Jersey is basically one big metro area. Cleveland, Pittsburgh, Baltimore are next closest areas right outside area,

Montreal, Toronto, and Quebec are also included (though I don't think border time is factored in) but also huge metro areas people should be flocking to the Orange.

Penn State, Boston College and Rutgers are within this boundary.

Lock down the I-90 corridor, get your foothold in NYC, Long Island, Jersey, and the East PA areas. Start a marketing campaign. Hit these areas. Give me a billboard when I enter NYS on I-81. Or in the Summer towards the Jersey Shore going down the AC Expressway.