Friday | February 10, 2012
March Madness Means Money
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By
Emily Torres
18 March 2010
March Madness: 65 teams, 64 games, six rounds, and lots and lots of money.
Conference Distribution
During March Madness, every game that a team plays up to the finals earns that team one basketball unit. This year’s units are projected to be $222,206. A team that makes it to the final will earn five units; so if a team makes it to the championship it will earn $1,111,030.
The money is distributed to each conference based on the performance of that conference’s teams over the previous six years in the NCAA tournament. So this year, the money will be determined by the total units the teams in the conference received during tournaments from 2004 to 2009.
Each team in the tournament usually shares its revenue with all of the teams in its conference—no matter how well they did. Conferences are not required to share but it the NCAA urges them to do so. Not only does this share the money, but it shares the pressure. If the teams are sharing then it won’t come down to one player making one shot to ensure their school is fiscally solvent.
The Big East, ACC, Big 12, Pac 10 and SEC have generated the most money for their respective conferences.
Where does the money come from?
Conferences with winning teams can earn big money. March Madness generates over 90 percent of the NCAA’s entire operating revenue.
- TV. Most of the money comes from the networks paying to televise the games. CBS is paying the NCAA $6.1 billion over 11 years so they can broadcast the games and sell advertising during the tournament.
- Ticket sales. In 2008, the NCAA made $40 million in ticket sales.
The NCAA controls the tournament and, therefore, the revenue. It doesn’t have to split any money earned with corporate sponsors. The only people they do share with are the teams.
Doing well can mean earning money in other ways:
- Alumni and boosters give more
- Apparel & memorabilia sales go up
- Free publicity & national exposure for the school
- Attract better players
- Boost individual player’s stock
Spending the money
What March Madness money can buy:
- Athletic budget
- Academic departments
- Non-revenue generating sports
- Local community
- School building projects
- Scholarships
Top 10 college conference revenue recipients :
1.Big East - $23.1 million
2. Atlantic Coast – $18.2 million
3. Big 12 – $17.1 million
4.Big 10 - $15.3 million
5. Southeastern – $15.1 million
6. Pacific 10 – $14.7 million
7. Conference USA – $8.4 million
8. Atlantic 10 – $6.4 million
9.Mountain West - $4 million
10. Sun Belt – $3.6 million
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