Despite disappointing results on the court, the men’s IU basketball program remains one of the nation’s most valuable.
That’s according to a new study by Ryan Brewer, an associate professor of finance at Indiana University Columbus, reported on by the Wall Street Journal.
Brewer’s analysis finds Indiana has the third highest enterprise value ($279 million) in the nation among all men’s college basketball programs. At $34 million, his data indicates IU has the sixth most revenue, while its $12.9 million of cash flow ranks eighth.
Indiana ranks behind North Carolina and Duke, and ahead of Ohio State and Louisville to round out the top five.
The determination of an overall enterprise value is an attempt to measure what the selling price of the program would be similar to how professional sports organizations are sold.
In the same study, the IU women’s program is ranked No. 14 in the nation with annual revenue of $8.5 million, and an enterprise value of $50 million.
Brewer cautions the actual enterprise value could be substantially higher because a college basketball program is a rare asset. Moreover, with revenue sharing looming, how much resources a school chooses to allocate to basketball players could significantly impact values going forward.
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