Melissa Lee (News Anchor) 00:00.070
in college sports valuations are soaring fueled by massive media deals expanded playoffs conference realignment and the rise of NIL deals the top seventy five athletic programs are now worth a total of fifty one point two billion dollars up thirteen percent from twenty twenty
Melissa Lee (News Anchor) 00:14.950
four based on CNBC official college valuations list that is out today the university of texas at austin tops the list valued at almost one point five billion followed by the ohio state texas A and M university of georgia and the university of michigan joining us now the folks
Melissa Lee (News Anchor) 00:29.990
behind the list CNBC senior sports reporter michael ozanian and jason belzer publisher of athletic director you gentlemen great to have you with us mike i'm going to start it off with you what's behind the list how did you create it
Michael Ozanian (Senior Sports Reporter) 00:41.830
well the list right now is basically being driven by the TV deals and you see that with the top of the list the athletic programs and the big ten and the SEC those conferences have the biggest TV deals in college sports university of texas usurped ohio state who is number one
Michael Ozanian (Senior Sports Reporter) 00:58.590
last year university of texas has the highest revenue of any athletic program they had a huge surge in donor money last year which was a big reason why their revenue went up
Tim Seymour (?) 01:10.910
mike as you look at the college football landscape and the amount of money that's being put into the NILS it's almost seemingly changed the landscape of the game and it seems to be growing in fact many of these college athletes will make more money in college than they could
Tim Seymour (?) 01:24.510
ever dream of making in the pros who are some i would just say unexpected winners here is it is it going to continue to be the student athletes or is it going to be some of the schools that maybe never got into the top five who now have repositioned i mean and maybe that means
Tim Seymour (?) 01:40.710
winning on the on the playing field i mean look at vandy this year in the SEC who never was there but now suddenly is and that's a self fulfilling monetary payoff
Michael Ozanian (Senior Sports Reporter) 01:49.190
yeah the player portal right where players are changing schools every year i was an offensive tackle for one school now he's playing for another school this year a lot of that's driven by nil money as you just mentioned him and i think you know look my daughter 's a freshman in
Michael Ozanian (Senior Sports Reporter) 02:03.950
indiana university right so for her three years ago they weren't on the map as far as college football now they beat ohio state they're ranked number one going into the playoffs that's the dynamic you're seeing here among college athletic programs principally football because of
Michael Ozanian (Senior Sports Reporter) 02:19.790
what you just said to him
Guy Adami (?) 02:21.190
so jason when you when you look at the conflicts of interest or potential conflicts of interest when you look at these NIL deals and the boosters tossing money in there does that have any issue with inflating a lot of these teams perceived valuation when you when you do your
Guy Adami (?) 02:37.190
grids on these teams
Jason Belzer (Publisher) 02:39.750
the answer is no we take a very objective approach to valuing these businesses we look at their actual revenues media rights ticket sales sponsorship nil does get factored in but the rules have changed substantially starting this past season universities can pay student athletes
Jason Belzer (Publisher) 02:58.830
directly and there is a essentially a hard cap that's in place of approximately twenty point five million dollars this year there are some ways to get above that cap but the reality is that technically ohio state and indiana are paying their student athletes the same amount of
Jason Belzer (Publisher) 03:14.830
money that being said and as mike kind of pointed out there is a tremendous arbitrage opportunity the reason why indiana is ranked number one going into the playoffs the reason why they had a heisman winner is because of nil and there's a huge opportunity for an institution to
Jason Belzer (Publisher) 03:31.030
be able to boost its value if it can deploy its capital right to their student athletes