The big business of college football

The final game of the College Football Playoff kicks off tonight, with No. 1 Michigan and No. 2 Washington each looking to clinch their first national championship in over two decades.

It also caps off a lucrative season for athletic departments, conferences, and players alike:

• The Power 5 Conferences are projected to earn more than $3.2 billion in revenue for the 2023 fiscal year, with football outearning nearly all other college sports combined.
• College athletes raked in between $750 million and $1 billion in name, image, and likeness (NIL) deals last year, the majority of which went to college football players.
• The minimum ticket price for tonight’s championship game is currently hovering around $1,400.

And don’t forget about next year’s planned playoff expansion. The College Football Playoff will expand from four to 12 teams next year, a move that’s projected to boost the event’s media-rights fees from $470 million/year to ~$2.2 billion/year once ESPN’s exclusive deal expires in 2026.

🔀 Major conference alignment is also on the horizon. The SEC is scheduled to welcome Texas and Oklahoma from the Big 12 in July, while most Pac-12 schools will split up and join other major conferences the following month.