ECONOMIC VALUATION STUDIES – METHODOLOGY
Foundational Principles
The Economic Valuation Study was conducted under guiding principles of accuracy, transparency, and independent verification. All financial, audience, and institutional data incorporated into the analysis were derived from verifiable sources. Where complete data were unavailable, conservative and methodologically sound assumptions were applied to prevent overstatement of impact.
Recognized economic modeling frameworks were used to support multiplier estimates, including MR-SAM multipliers aligned with RIMS II input-output methodology standards. To test the robustness of findings, scenario analyses were conducted across varying financial assumptions. Direct, indirect, and induced economic effects were modeled independently to prevent double-counting. Multi-year trend analyses were performed to evaluate short-term variability and longer-term patterns of stability and growth.
Economic Impact – Athletic Revenue & Institutional Impact
A comprehensive financial profile was constructed using university financial statements, NCAA reports, Banner Sport records, media partner data, and independent research sources.
All revenue streams directly attributable to athletics operations were identified, including ticket sales, media rights, sponsorships, licensing income, net tuition from student-athletes, and camps and event revenue. These figures represented externally generated funds directly resulting from athletics activity.
Broader economic impact was modeled using MR-SAM multipliers aligned with RIMS II input-output methodology standards. Revenue categories were assigned appropriate multipliers based on whether income derived from labor, non-labor sources, or household spending. Direct effects (initial spending), indirect effects (supply chain activity), and induced effects (household spending resulting from economic activity) were calculated separately to ensure methodological rigor and eliminate double counting.
Institutional Support Analysis
Institutional support was evaluated by analyzing the relationship between total university budget, Athletics Department budget, and direct institutional support including student fees. The proportion of institutional resources allocated to athletics was calculated and benchmarked against a defined group of peer institutions to provide appropriate contextual perspective when required.
Academic Institutional Impact
Academic impact was assessed through comparative analysis of incoming freshman metrics for student-athletes and the general student population, including GPA, standardized test scores, enrollment proportions, and multi-year trends. Retention rates were examined by sport over a three-year period.
Long-term economic impact was calculated using statewide wage data to estimate earnings premiums associated with bachelor’s degree attainment. The estimated earnings differential was multiplied by the number of graduates.
Student-Athlete Tuition Impact
The financial contribution of student-athletes was calculated by evaluating tuition, fees, housing, and meal plan revenue. Net tuition revenue was determined by subtracting financial aid and scholarship amounts from total billed tuition. All rostered student-athletes were included. Multi-year trend evaluations were conducted to assess consistency and growth.
Volunteerism Economic Impact
Volunteer economic value was calculated by multiplying total annual volunteer hours by the state’s official volunteer hourly rate as published by Independent Sector. The resulting value was modeled using the MR-SAM framework to estimate associated indirect and induced economic effects.
Media Exposure – Advertising Value Equivalency (AVE)
Advertising Valuation Equivalency (AVE) estimates the market cost of purchasing equivalent media exposure through paid advertising. Within the context of the economic valuation, AVE reflects the estimated advertising value of live televised athletics broadcasts based on verified audience data and prevailing CPM benchmarks. The AVE valuations presented are calculated based on a full-time run load.
While AVE provides a market-based valuation of exposure, it does not measure realized revenue generation or specific consumer behavioral outcomes. Its use is intended to approximate the relative value of potential earned media visibility.
- Audience – Viewership estimates were derived from Nielsen ratings, the industry standard for television audience measurement. Nielsen ratings quantify audience size and composition for broadcast programming and have served as the recognized benchmark for media measurement since the 1950s.
- CPM – this defined as the cost per thousand impressions and is the core pricing model in television advertising. In practical terms, television CPM represents the amount an advertiser pays for every 1,000 ad impressions delivered on a television screen.
- Event Length – – Average event duration assumptions were based on historical broadcast data. Basketball games were modeled at 120 minutes. Football games were modeled at 204 minutes.
- Full Run-Time Load – The AVE valuations presented are calculated based on a full run-time load. The AVE Full Run-Time Model assigns a dollar value to broadcast exposure by estimating what it would cost to purchase the same amount (204 or 120-minutes depending on event) of airtime as paid advertising. A secondary valuation framework commonly referenced within broadcast analytics is the Ad Load Model. The Ad Load Model is a recognized broadcast valuation framework that estimates exposure value based on commercial inventory density within a given programming hour. While acknowledged for contextual purposes, this model is not applied in the valuation calculations presented in this report.
- Rate Card – National broadcast programming CPM averaged approximately $45.34 CPM for a :30 second spot in 2024 with live events such as sports commanding premium rates. CPM rates can vary between $15 to $65 per :30 seconds depending on network, broadcast time, programming “type”, and projected viewership. For the economic valuation studies, a conservative CPM of $35 for :30-seconds was utilized, which as noted above is less than broadcast average of $45.34.
- Advertising Costs – Gross advertising cost was calculated by converting the selected :30-second CPM benchmark ($35) to a :60-second equivalent ($70) and multiplying by the total potential in-game advertising inventory based on event duration. For example, using a conservative $35 CPM for a :30-second spot, the :60-second equivalent is $70 CPM. A football broadcast modeled at 204 minutes yields 204 potential :60-second intervals. The per-game advertising equivalent is therefore calculated as: ($70 × 204) × (viewership ÷ 1,000). The resulting figure is then adjusted using the designated multiplier to estimate gross AVE.
- Multiplier – A 3× multiplier was applied to reflect the generally accepted marketing principle that earned media exposure carries greater perceived credibility than paid advertising. Multipliers are widely used in valuation modeling but do not measure consumer activation, sentiment, or purchasing behavior. The multiplier is applied solely to estimate gross exposure value.
Social Media Valuation
Verified impressions were used when available, and in the absence of impression data, unduplicated follower counts were conservatively applied. Engagement metrics were divided by 1,000, multiplied by platform-specific CPM benchmarks, and adjusted using a 5× multiplier.
Local Media Valuation
For local television, radio, and print coverage, average market audience data were applied when event-specific data were unavailable. Mentions were categorized by platform and multiplied by applicable CPM benchmarks and a consistent 3× multiplier.
For print media, article frequency, circulation rates, and publication cadence were analyzed. Estimated appearances were multiplied by calculated AVE per publication to determine total print exposure value.
AVE benchmarks and media valuation inputs were supported by published industry resources.