March Madness profits

March Madness is the most popular tournament in all of NCAA with its nationwide involvement and excitement. Not only do people go all out with watching and attending the games, but people compete with their brackets and make bets on what team is going to win. It turns into much more than just some college basketball games when offices and schools across the US become entirely focused on the games.

Last year alone, NCAA made an estimate of $1 billion from a proliferation of television ad, corporate sponsorships, media rights fees, and ticket sales. The American Gaming Association estimated that there would be about 70 million brackets made and about $9.2 billion will be gambled on the tournament. In order for there to be so many brackets, it also means that 81.5 million employees are expected to spend a minimum of an hour of work time filling out a bracket which in turn costs their employers $2.1 billion.

With these sort of numbers, it makes sense that NCAA's governing body will earn about $900 million which is 90% of their annual revenue. However, the NCAA may make bank on the tournament, but the athletes who actually play in the games make no money. By making rough estimates that there are 68 teams in the tournament with 15 players on them each and if they split the money made from the tournament they could all make $800, 000. However, this isn't very fair as half these players probably won't end up playing and there are costs to be covered, but the NCAA could still pay the athletes $100, 000 and have tons of money leftover while making a huge difference for the players and their families.

Source: https://www.investopedia.com/articles/investing/031516/how-much-does-ncaa-make-march-madness.asp

Comments

  1. AnonymousApril 8, 2019 at 1:30 AM

    Great post! March Madness is a crazy time for everyone and also has a huge economic impact. While the NCAA makes tons of money from the ads, tickets and media, American people will also benefit economy. For example, they buy much more food - chicken wing orders increase by 24%, dessert orders increase by 9% when one's team is defeated, and pizza sales increase 19% when one's team wins. Additionally, during March, the number of barrels of beer significantly increases, up to 1.3 million extra barrels. Through this month of cheering and crying over people's favorite college teams, their actions also have a huge effect on our economy.

    https://60secondmarketer.com/blog/2018/04/03/the-economic-impact-of-march-madness-and-the-final-four/

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