Each year, millions of fans tune in to watch their favorite college teams battle for the championship, generating billions of dollars in economic activity. In 2023 alone, the NCAA tournament brought in more than $1 billion in revenue, primarily through broadcasting rights and sponsorships.
The NCAA distributes a significant portion of March Madness revenue to member conferences based on their teams' tournament performance, awarding "units" for each game played, which conferences then distribute among their schools, often evenly. In 2023, the SEC earned the highest estimated payout of $34 million, followed by the Big 12 at $32 million, based on the number of tournament games their teams played.
That sounds like a big payday, but it’s important to remember that these amounts are split among teams in the conference, and most basketball programs in the Power 5 conferences spend more than $10 million, and some more than $25 million.
Local economies benefit, too, as host cities see a surge in travel, hotel stays, dining, and entertainment spending.
One standout example of individual influence is Caitlin Clark. Her record-breaking performances and electrifying style of play not only elevated women’s college basketball viewership to new heights but also brought significant financial gains. Iowa games saw sold-out arenas, merchandise sales soared, and television ratings spiked whenever she played. Clark’s impact demonstrated the powerful economic potential of star athletes, drawing attention to the women's game and generating fresh revenue streams for her university and the NCAA.
But the financial impact extends beyond game day. For universities, a strong tournament run can boost alumni donations, attract prospective students, and enhance school pride. For example, when a smaller school makes a Cinderella run, applications can spike, giving the institution a unique opportunity to grow and strengthen its academic programs.
At the same time, it’s essential to recognize the financial complexities. While top programs may see substantial revenue, not all athletic departments turn a profit, and many rely on these marquee events to support smaller sports and scholarships.
So, as your bracket progresses – or, in my case, goes bust, remember that March Madness is more than just a game — it’s a dynamic force that influences communities, educational institutions, and the broader economy.
Remember that no matter how well you do with your tournament bracket, we’re happy to discuss your own financial goals. You can contact us at (515) 225-6000, or online.