Skip to main content
texas logo

Study finds Texas to be second most valuable college football team

Eric Nahlinby:Eric Nahlin•about 10 hours
Steve Sarkisian, Arch Manning
Steve Sarkisian, Arch Manning (Will Gallagher/Inside Texas)

Obviously divining which college football programs are the most valuable is a hypothetical pursuit and not a real consideration even with private equity loitering around the sport, but I thought it was interesting enough to share. Mostly because it’s wrong.

[BOOKMARK: Check Inside Texas daily for FREE Texas Longhorns content]

Ohio State, and its rich short- and long-term history was ranked No. 1 with Texas right behind it at No. 2. On the surface, one might agree with that. The Buckeyes have not endured the boom or bust periods on the field nearly as much as Texas has but the Longhorns have always made money, even when coaching changes were as numerous as big wins.

Texas and making money are synonymous even when Charlie Strong is the coach.

Here’s a table from the WSJ to illustrate the findings of the study:

You will note Texas’ adjusted cash flow dwarfs that of all others, even Ohio State despite taking in $3.5 million more. Some of that discrepancy is due to Ohio State’s more favorable TV deal through the Big Ten and Fox than Texas’ through the SEC and ESPN. That’s a difference that will very likely be evened out in the next round of TV negotiations. More cash flow for UT.

Which one are you buying? The one with $20 million more in cash flow or the one that costs $60 million more?

Both college “towns” are growing, and I’ve heard nothing but positives about Columbus, but Austin Metro has perhaps the most sustainable growth of any area in the country and essentially has a major sister city nearby in San Antonio, where countless Longhorns fans live.

NFL competition exists for both schools, sort of, but each brand is large enough to be isolated from pro sports incursion. Unless the Cowboys start winning again. Ha ha ha ha!

Each state has a large number of living alumni, with Texas fans found in Austin, Dallas-Fort Worth, Houston, and San Antonio. Those are massive markets.

Buying a company is more about what it can be rather than what it is. From the article:

Brewer’s analysis also accounts for factors that might not appear on any balance sheet. Alabama, for instance, used to get a bump simply because of the value one person brought to the program. But Nick Saban is no longer the coach of the Crimson Tide, and the team missed the expanded playoff without him.

It naturally follows Alabama would be worth less without its ‘key man’ but if you look at this in the other direction it naturally follows Texas is worth more than ever because of the success and stability of its key man — Steve Sarkisian. Ryan Day’s future was in question (by buffoons) after Ohio State’s loss to Michigan this season and he might be in for a bumpy ride next year with the majority of his top players off to the NFL. Ohio State went all in on this season and its aggression was rewarded, but that doesn’t guarantee success next season, far from it.

Texas is about to start the quarterback with the most marketing potential in the history of college football in a city that attracts tech billionaires and Hollywood millionaires alike.

[Join Inside Texas TODAY and get 7 days for just ONE DOLLAR!]

Cash flow is only about to increase for Texas as Arch Manning takes the reins.

You may also like