College Football is Kicking Off, and That Means Big-Time Money
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University of Michigan players celebrate after a touchdown in the National Championship game against the University of Washington, on January 8, 2024.Key Takeaways
College football season is beginning in earnest this weekend, as the sport's multi-billion dollar gears start to turn once again.
The broadcasting rights for college football's regular season games and playoff games generate billions. Disney's ESPN agreed earlier this year to a $7.8 billion extension of the network's rights to broadcast the College Football Playoff.
Athletic apparel giants such as Nike, Adidas, and Under Armour pay millions to have their brands associated with high-profile football programs.
The 2024 college football season kicks off in earnest this weekend, with billions of dollars from well-known companies set to flow through the sport for another season.
Football remains the dominant sport in the U.S., with annual lists of most-watched TV programs dominated by the pro and college game. Several of the largest stadiums in the world house college teams such as the University of Michigan and rival Ohio State University.
The economic impact can be substantial in those stadiums' surrounding areas during the season. Meanwhile, some of the country's biggest collegiate athletic departments manage budgets in the hundreds of millions of dollars.
Broadcasting Brings in Billions
In March, Disney's (DIS) ESPN agreed to a six-year deal to retain its broadcasting rights for the College Football Playoff for $7.8 billion, maintaining the spot as the playoff's broadcasting partner it has held since the first edition of the playoff nearly a decade ago. This season will be the first that the playoff expands to 12 teams from four in the previous version.
Individual conferences including the Big Ten and Southeastern Conference have broadcasting contracts valued at hundreds of millions to billions of dollars with networks such as ESPN, Paramount's (PARA) CBS, Comcast's (CMCSA) NBC and Fox (FOX).
Nike, Under Armour Shell Out Millions to Sponsor
The biggest college athletic departments also bring in millions from apparel giants such as Nike (NKE), Adidas (ADDYY), and Under Armour (UA).
Public colleges such as Ohio State and Michigan have deals with Nike for millions of dollars annually in cash and royalties, along with millions more in equipment and uniforms for the universities' football teams and other athletic programs. Texas Tech, the alma mater of Kansas City Chiefs star Patrick Mahomes, announced a 10-year agreement with Adidas last month to supply gear for the school's teams.
The deals extend to private universities as well, with Notre Dame and Under Armour agreeing to a 10-year deal in August 2023 worth a reported $10 million per year in cash and apparel.
On the field, traditional powers are expected to continue to perform this season. Preseason rankings released in mid-August by the AP list Georgia, Ohio State and Oregon as the top three teams.
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