Professionalization of the Amateur Model

Strategic Valuation Assessment For Collegiate Sports

The collegiate sports industry is currently undergoing its most significant transformation in many years. Some are referring to it as “Professionalization of the Amateur Model.” Regardless of the various monikers ascribed, all can agree that previous legal and economic barriers are being dismantled in favor of a market-driven system, and this market-based system challenges the financial viability of existing programs within the NCAA (National Collegiate Athletic Association).

The market-driven system involves a number of changes to previous economic models. College revenues have historically been under-monetized relative to comparable benchmarks. NIL (Name, Image & Likeness) and revenue sharing mandates, as well as other fresh concepts and trends such as mixed-use stadium districts are resulting in substantial financial opportunity. At the same time, those that don’t evolve may fall behind and struggle to remain competitive.

The evolving market and related financial opportunity is attracting interest from large investors including PE firms. As universities contemplate options and next steps in this evolving marketplace, you may determine it advisable to engage with a third-party advisor to assist with financial modeling, an examination of ROI/returns, and an assessment of strategic options.

We have relevant experience wherein we have assisted teams similar to yours in preparing, reviewing, and analyzing forward-looking financial models that examine the ensuing change and related economic returns under various scenarios. If this is something that your university could benefit from, please contact me at jhassan@mpival.com or dmuller@mpival.com to set up an introductory call.

About MPI

MPI, a prestigious national consulting firm founded in 1939, specializes in business valuation and corporate advisory work as well as related consulting projects. MPI conducts every engagement as if it is going to face the highest level of scrutiny, and its senior professionals have extensive experience presenting and defending work product in front of financial statement auditors, management teams, corporate boards and fiduciaries, the IRS, other government agencies, and in various courts.

For more information, please contact:

Joseph C. Hassan, CFA, ASA Managing Director (609) 955-5725 (908) 415-8012 (cell)

Princeton Headquarters 210 Carnegie Center Suite 103 Princeton, NJ 08540