Notre Dame football program worth more than Alabama’s

Notre Dame Gold

Regardless of who wins tonight’s National Title Game between the Alabama and Notre Dame, the Fighting Irish will walk away with at least a moral victory. As reported by the Wall Street Journal, Notre Dame’s football program is worth more (monetarily) than Alabama’s.

BCS University Values

Ryan Brewer, an assistant professor of finance at Indiana University-Purdue University Columbus, calculated the intrinsic valuations for 115 of the teams in the top-tier Football Bowl Subdivision. Among other factors, the study looked at each program’s revenues and expenses and made cash-flow adjustments, risk assessments and growth projections for each school. The resulting figures represent what the teams might fetch if they could be bought and sold like pro franchises. (As a point of reference, the NFL’s Jacksonville Jaguars sold in late 2011 for about $760 million.)

According to the study, Notre Dame outperformed Alabama $597.4 million to $476.0 million, a difference of $121.4 million. The Texas Longhorns were ranked 1st with an anticipated value of $761.7 million. Notre Dame and Alabama placed 4th and 8th respectively. Despite being the program with the greatest estimated value Texas’ value dropped 5% from the previous year. Conversely, Michigan value of $731.9 million (good enough for 2nd) was an improvement of 18% from the previous year’s valuation.

2012 Conference Members by Worth.
(*excluding Wake Forest)

Conference – per team – total conference
SEC – $310.80 (14 teams) $4351.3
Big 10 – $298.19 (12 teams) $3578.3
Big 12 – $239.46 (10 teams) $2394.6
Pac 12 – $157.96 (12 teams) $1895.6
ACC – $139.60 (11 teams*) $1535.7
Big East – $73.66 (8 teams) $589.3