USC was the top California school in a new CNBC ranking of the 75 most valuable college athletic programs in 2024.
The CNBC rankings, topped by Ohio State University, estimated what valuations of the top athletic programs would look like as private equity firms aim to enter college sports. CNBC’s Michael Ozanian compiled the rankings, with valuations ranging from about $150 million to an astounding $1.3 billion, after speaking with sports bankers and people looking to invest into college athletic programs.
Valuations were then calculated with a revenue multiple of four. That figure was adjusted up or down based on factors like TV revenue, size of alumni and fan bases, value of Name Image Likeness (NIL deals) and the program’s reliance on subsidies from students or the school.
Big Ten and SEC programs performed the strongest, reflecting their lucrative TV deals, Ozanian said. Programs from the two powerhouse conference made up 21 of the top 22 spots.
The ranking offers insight into how programs would fare if private equity and venture capital enterprises, such as College Sports Tomorrow, Smash Capital and Collegiate Athletics Solutions, were to buy in to college athletic programs. Such arrangements are common in professional sports, but have gained more attention among college programs.
“I think that’s one of the things private equity is looking at and why we did these valuations,” Ozanian said, “I think they’re looking at the pros and saying, ‘Geez, when you look at the interest in college football… that passion and that fan base is there, we can make more money from these things.'”
California schools in CNBC’s ranking
Here’s where California schools landed in the rankings.
12. USC: Valuation: $923M; Revenue: $212M
23. Stanford: $687M valuation; $180M revenue
54. UCLA: $472M valuation; $105M revenue
62. UC Berkeley: $386M valuation; $126M revenue
67. San Diego State University: $287M valuation; $104M revenue
Click here for full 75-school ranking.
One factor in particular, Ozanian said, knocked USC out of the top 10 to No. 12.
“(That’s) very strong. Two hundred and twelve million dollars in revenue, again one of the few private schools that we have,” Ozanian said. “Where they do very well is in NIL. They’re in the upper third of all the schools we looked at. What pulled them out of the top 10 and lowered their revenue multiple a little bit is that they had a lot of subsidies last year. Over $5 million, which is relatively high for the top schools.”
There was a recurring theme in the rankings: Schools with strong football programs, a top revenue generator in college sports, were among the top performers in the rankings.
Stanford’s football program and a move from the Pac 12 to ACC suggest a bright future in terms of revenue and valuation, Ozanian said.
“Stanford is a school that, typically, year in and year out has a solid football program,” he said. “They don’t market their football program a lot, but Stanford is another one of those schools, they join the ACC, because of the ACC’s bigger TV deal than the Pac 12, their revenue is going to go up and their value is going to go up.”
Then there’s UCLA at No. 54, well below crosstown rival USC, but positioned to move up, Ozanian said.
“That’s a big brand, right? When we think of big brands in football on the West Coast, we’ve got USC and UCLA, right there, yet UCLA’s revenue was only $100 million,” Ozanian said. “They don’t do that great in ticket revenue and TV revenue, especially, but I think UCLA is going to have a big upside, too. That chasm with USC is going to close.”