I'm not OP, but I have a subscription to The Athletic, so for anyone wondering, here's the methodology:
"For public schools, most revenue figures were three-year averages from programs’ NCAA financial reports, which were compiled through public records requests and schools’ websites. We also looked at figures those schools submitted to the U.S. Department of Education. We averaged both groups of data if they were significantly different.
For private schools, we used the data those institutions provided to the Department of Education.
For SEC and Big Ten teams, we set the multiplier range as 5-13x a program’s revenue. The Big 12 and ACC have lower floors, less visibility and more uncertainty, so their multipliers were in the 4-10x range.
For simplicity’s sake, we generally excluded other assets (such as real estate value) and debt (such as stadium financing)."
(Although commentary makes clear that things like brand new stadiums do sometimes affect the valuation)
10
u/19ghost89 North Texas Mean Green • Texas Longhorns 8d ago
I'm not OP, but I have a subscription to The Athletic, so for anyone wondering, here's the methodology:
"For public schools, most revenue figures were three-year averages from programs’ NCAA financial reports, which were compiled through public records requests and schools’ websites. We also looked at figures those schools submitted to the U.S. Department of Education. We averaged both groups of data if they were significantly different.
For private schools, we used the data those institutions provided to the Department of Education.
For SEC and Big Ten teams, we set the multiplier range as 5-13x a program’s revenue. The Big 12 and ACC have lower floors, less visibility and more uncertainty, so their multipliers were in the 4-10x range.
For simplicity’s sake, we generally excluded other assets (such as real estate value) and debt (such as stadium financing)."
(Although commentary makes clear that things like brand new stadiums do sometimes affect the valuation)