Study: IU basketball is nation’s third most valuable program

  • 03/31/2017 8:25 am in

The value of Indiana basketball is on the rise.

After coming in fourth nationally in Ryan Brewer’s annual rankings of the country’s most valuable college basketball programs, IU moved up one spot in this year’s study.

The study was published in Thursday’s Wall Street Journal.

Brewer, an assistant professor of finance at Indiana University-Purdue University Columbus, valued Indiana at $277.8 million, a 14% increase from a year ago ($243.8 million).

In 2015’s study, Indiana was eighth nationally at $199 million.

Kentucky, valued at $342 million, was No. 1 in the valuation study and Louisville, valued at $320 million, was No. 2.

The values are assigned using factors that determine what a program would be worth on the market if it could be sold like a professional team. Among those factors: expenses, revenue, cash-flow, risk assessments and growth projections.

Here’s how the other Big Ten programs came in on the list:

6. Wisconsin – $178.9 million (down 13.5%)
7. Ohio State – $177.9 million (down 26%)
8. Maryland – $154.6 million (up 24.8%)
11. Purdue – $140.4 million (up 28.2%)
12. Illinois – $127 million (up 28.2%)
16. Michigan – $97 million (up 18.5%)
17. Northwestern – $93.3 million (up 14.5%)
18. Michigan State – $92 million (down 27.3%)
27. Minnesota – $77.9 million (down 21.9%)
32. Penn State – $64.3 million (down 6.3%)
33. Iowa – $60.8 million (down 3.3%)
50. Nebraska – $48.5 million (up 17.5%)
80. Rutgers – $28.7 million (up 10.9%)

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  • ArghSonOfOhCrap

    Alex was “solid” supposed to be “sold”

  • IULore

    Very cool, this region is crazy for basketball.

  • pcantidote

    Bizarre story in the Indy Star about Bob Knight calling around to see what people think about Archie Miller. Why would he care? I almost wonder if the real reason he hasn’t come back is because he hasn’t respected the coaches. Anyway, I don’t really care….just thought it was curious.

  • Yes. Fixed. Sorry about that.

  • ArghSonOfOhCrap

    Yes – That ship has sailed with RMK I don’t care either.

  • N71

    Agree, odd after his comments on the Dan Patrick Show. I’d much rather focus on the immediate task at hand with Archie, roster, staff, scheduling, etc. Figuring Knight out has proven impossible.

  • TomJameson

    Have a ways to go to catch #2 on that list. Probably more to the revenue part than just the mens BB program, but I’d bet that is the biggie. Somebody feel free to correct me if I’m wrong (like anybody needs permission) :-).

    Probably going to get a bump in revenue from the mens BB program ticket wise, but not sure if there is that much bumpthat can happen. Not really a bunch of empty, or unpaid for, seats …. is there? A seat can be empty but still paid for, but if there were a person sitting in that seat, he/she would likely be buying things to eat, and IU gear of some kind. That’s the real revenue.

    Maybe a better pre-conference schedule will fill seats while the kids are getting trashed in Cancun. 🙂 I know I will be more likely to buy that 3/4 game bundle if the games were against better opponents.

    I’m sure the stadium size means a lot also.

  • enickman

    #1 most valuable program in my book! Go Hoosiers!

  • HuntinHoosier86

    Sheesh, poor Michigan State. I mean, I know they’re a “football school”, but more often than not, they have great success year in and year out. I would have thought they would be top 3 in the B1G, anyway…

    Ohio State is #3 in the B1G and they’re DEFINITELY a “football school”!

  • N71

    We went up in value roughly the same amount (a little less) that we put into Assembly Hall ($40 mil?). Perhaps facilities is part of the balance sheet valuation.

  • enickman

    I know there are a lot of IU fans who are very disappointed in Coach Knight. I feel sorry that he carries so much anger. We know the bible tells us to forgive and in reality forgiveness is more for ourself than for the person we’re forgiving. He carries so much anger towards the school administration long gone that he doesn’t see the many fans who would go nuts if he finally came home. He’s become a very sad figure in my opinion. With that said, we all yearn for banner #6 but having watched IU since the early 70’s I will never forget one of the greatest coaches in history who put us in position to get the 6th banner. Maybe with Archie coming in he will reconcile his anger and come home to IU?

  • Brad

    I agree 100% with what you said. In my opinion, I think Bob Knight feels that IU committed the ultimate sin against him which was disloyalty. He’s an old school guy and having coached at West Point, loyalty is paramount in his thinking. He’s probably thinking, “they kicked me out after all I had done for the school because of my conduct, and now they want me to come back because it’s convenient for them.” They basically said we don’t like you and the way you do things now, but it was cool when you were hanging banners. That would be hard to get over. Again, that’s just my opinion but I do understand if that’s how he feels. I can’t say I’d be too keen to come back to a place that turned it’s back on me after hanging banners and now wants to celebrate me.

  • Brad

    I saw that too. I couldn’t believe it. It would be nice to get him behind our program again. That would be a real momentum boost for the fans, players, and Archie. I’ll keep my fingers crossed but I’m not betting on it.

  • Hardwood83

    No kidding- not sure I buy MSU behind Northwestern! That doesn’t make any sense. Everyone likes to pretend they matter and NW was a nice story this year, but let’s be honest NO ONE cares about them. No one.

  • calbert40 – AC000000

    Has to be the value of the real estate. NW being in the high rent district that is Evanston vs East Lansing probably makes up more than the difference. Also, NW is currently doing a major renovation to Welsh-Ryan Arena. I don’t know if that is included or not, but that would make a big difference.

  • enickman

    Of note is the B1G has 9 programs in the Top 20. That speaks to the historical strength of the conference as the best consistently from top to bottom. Recent NCs not withstanding. The addition of Archie to the conference coaching ranks should really help move it back to the top once again. Very exciting time to be a fan of the Hoosiers!

  • Kyl470

    I agree. I try to put it in terms the rest of us might understand. Imagine if you worked for your company for 20 years and during your time you were the top salesman or woman. Employee of the year a couple times and the company thrived while you were employed there. Then the company fires you and you lose your job. Even if you deserved to be fired would you want to go back and attend social functions at that company? I highly doubt any of us would. At least in my life I’ve yet to attend a company Christmas party where a previously fired employee showed up.

  • Kyl470

    I would assume so. I mean the Cowboys value sky rocketed when they built their super stadium down there.

  • calbert40 – AC000000

    I bet that the Yum Center is the difference. The Yum Center has a basketball capacity slightly over 22,000. If they have 18 home dates per year, and they average just 3000 more fans than IU does, and those seats are an average of just $30, that’s $90,000 more per game and $1.62M per season. And that wouldn’t include concession revenue either.

    Also, that venue has considerably more events. In this coming April alone, they are having Disney on Ice, a WWE event, a Neil Diamond concert, a Tim McGraw concert, Tosh, etc.

    I don’t know what UL’s relationship is with the Yum Center, but I bet that’s the big difference.

  • IULore

    Yeah, plus another big factor is the city size compared to Btown and intense pocket of devotion they have there, making them fill up the YUM! and look past coaches literally hiring wh**** for their players, lol.

  • David Schwind

    Didn’t he just called Donoher? You make it sound like he made multiple calls. Doesn’t seem weird to me at all.

  • BannerOrBust

    I now laugh at the ‘Experts’ when they were debating if Indiana was still an elite job for a coach…

  • papawglen

    After he said he hopes all the administration is dead I don’t want him back. Did before that but but never again.

  • BannerOrBust

    all of sudden, i’m hungry #Yum

  • inLinE6

    I don’t see that was being “debated” by experts. It was more of a question by fans and media. No national analyst that I know of said if wasn’t.

  • Koko

    He only called one person….Donoher. After talking with him Knight said to the audience…..“You folks get behind him,” Knight said of Miller, “and I think you’re gonna enjoy some good basketball.”
    I think you are correct in saying a possible lack of respect for past IU coaches….Crean for sure in my opinion.

  • BannerOrBust

    You apparently don’t read all the articles on this website.

  • Read this, didn’t comment and had to come back… As a rank order, i’ll buy the list; but as a $$ evaluation, it’s very suspect; difference between book value and sale value, mabye?? Compare to pro sports, which is the point of this valuation, the list doesn’t pass the smell test. Lowest ranked NHL teams are valued above $300mm;No dig to NHL but NCAABB is certainly at that level of interest or higher! NFL teams are valued in “B’s”.

  • BannerOrBust

    Thanks for the clarification.

  • enickman

    That’s your choice.

  • Ole Man

    Tom, like what?
    This says, “the value of the basketball program.”

  • Ole Man

    That’s just your opinion. Just YOUR OPINION> LOL.

  • pcantidote

    Ok, but way to skip right over the point. Why is he calling anyone? Why does he care?

  • pbhuff

    Its not about national recognition or the quality of the team. Its more about the financials. NW perhaps don’t have the highest revenues, but their costs are lower, effectively making them more “profitable”. MSU is low probably in large part due to Izzo’s high salary. While he certainly deserves the salary, it definitely eats into their revenue, which isn’t in the same ballpark as other teams paying their coaches similar amounts

  • John D Murphy

    NHL teams have a lot more home dates. And NHL fans drink some serious beer, accounting for high projected concessions. That is my guess.

  • John D Murphy

    It also speaks to the TV deals the B1G has. The last list I saw had every B1G school in the top 30-35 for revenue.

  • John D Murphy

    I think you are right. I think they sell beer at UofL games (I think), which increases the value of the concessions.

  • John D Murphy

    Let’s say you (knight) have a bitter divorce from your wife (IU). Many years later, your kids (1976 team) are having a wedding (’76 team reunion) at your wife’s property (Assembly Hall). Your kids (1976 team) let you know your attendance is really important to them. A decent human being would go. A self-centered @$& would not. I think that is a better analogy.

  • calbert40 – AC000000

    I believe so, because the arena is off-campus.

  • dan

    does this include louisville’s hooker staff

  • Kyl470

    Disagree with your analogy. Coaching basketball at IU was his job. I consider work life and home life two completely different things. I know not everyone does that, but that’s my thoughts on the matter.

  • Sandra Wilson

    You have to wonder if the NCAA’s lack of enforcing rules on UK and UL has something to do with this list and the power of $$$$. Of course, we’re 3rd and they jumped all over Sampson. Maybe because they know the alumni at I.U. is honest and they’d get a great deal of flack from the others. The whole country knows what the UK alumni are all about. Louisville is probably somewhere in-between.

  • enickman

    Very true!

  • iubase

    Agree. When you look at CMs strengths they do resonate with knight. RMK taught those same principles

  • David Schwind

    Why do you care that he cares. Free world.

  • Bballpop

    I personally don’t care any more what he does. But I know there are quite a few who still support him. I’m hoping that this can unite the fan base again.

  • pcantidote

    In case you haven’t noticed, this is kind of a place where people who care about the all things minutia of IUBB come. I find it interesting. Free world.

  • Obviously, RMK cares about IU basketball. He hates IU’s administration, or at least the one that fired him and perhaps the current one by association, but he’s never had anything but positives to say about his players and about IU fans. Yes, he’s punishing those same fans by refusing to come to the university proper, but his appearance in Bloomington on the 30th anniversary of the ’87 championship can’t be discounted in this regard. Who knows, maybe in his mind that’s the closest he can come to honoring the fans while keeping his distance from the university.

    He’s a bitter old man who’s become downright mean-spirited in many ways, and I feel sad for him on a certain level. If I’d invested myself in something like he did IU basketball for decades, and achieved his level of success only to be fired the way he was, I’d probably be a little bitter myself.

    But regardless, I find the whole thing to be a real positive towards Archie, which is what matters to me at this point. Everything else aside, RMK is a brilliant basketball mind and if he respects Donoher enough to call him for his opinion, then I take that as meaning that Donoher’s endorsement of Archie is a good one.

  • By the way, I’m curious too as to what his opinion was of TC, but I doubt we’ll ever hear it. I can imagine what his opinion was of Sampson, and I’m guessing he liked Davis given that he hired the guy. But I don’t doubt RMK’s ability to assess coaching ability.

  • pcantidote

    I thought I recalled him being bitter at Davis for taking the job but I could be misremembering. Long time ago.