March 19, 2025
Contact: Eric Stann, StannE@missouri.edu
March Madness isn’t just about buzzer-beaters and Cinderella stories. Each year — while fans agonize over their brackets — networks, advertisers and sponsors turn college basketball’s biggest stage into a high-stakes business arena.
From billion-dollar TV deals to the unsung economic boost for host cities, the madness isn’t just on the court — it’s in the bank accounts, too. So, lace up your sneakers and grab your calculators, because we’re diving into the business behind the Big Dance.
Below, Michelle Brimecombe, an assistant teaching professor of parks, recreation, sport and tourism in the University of Missouri’s College of Agriculture, Food and Natural Resources, examines the financial mechanisms and broader economic impact of the NCAA's March Madness tournament.
How have the NCAA’s multi-billion-dollar TV deals with CBS and TNT Sports shaped the financial landscape of college sports?
The current television and streaming deals continue to provide a major revenue stream for the NCAA and its members. While members of the sports industry often discuss the “rich get richer” aspect of these deals, what some fail to notice is the revenue sharing piece. For example, the NCAA distributes a portion of the revenues generated from March Madness to its conferences, and in turn the conferences distribute those funds to their members.
What are the key factors that make March Madness such a valuable media property compared to other sporting events?
March Madness is valued over other sporting events due to three main factors:
- Unpredictability and parity: The NCAA Men’s Basketball Tournament has built an atmosphere around “picking the correct 12 seed and the underdog.” This element of surprise keeps fans engaged on many levels.
- Viewer engagement: Both fans and non-fans alike come together when making brackets, driving interactivity and adding to the overall media attention.
- Scheduling and accessibility: The win-or-go-home style of March Madness captures the attention of the word by spreading games over multiple days and weeks. This is the American version of international tournaments like the World Cup.
How do revenue-sharing agreements from TV deals impact NCAA programs and conferences?
NCAA conferences and members are significantly impacted by the revenue sharing agreement for March Madness. Starting this year, men’s basketball teams receive 24% of the media rights deal, or roughly $8.8 billion over eight years. Most of the money will be distributed to conferences and then member schools of the 300 Division I eligible basketball teams. Member institutions typically reinvest that money into their athletic programs (not just men’s basketball) in the form of arenas, athletic facilities, salaries, scholarships and travel expenses.
With the rise of streaming platforms, how do you see the future of March Madness broadcasting evolving?
There will always be a continued importance placed on traditional media outlets, but there are increased opportunities for tech giants and new media outlets to bid for the broadcast rights — not only to bring new perspectives, but also to drive up revenues for the NCAA and its member institutions. As streaming services such as Netflix, Amazon Prime Video and YouTube invest more and more in live sporting events, fans will have more access points and possibly more viewership options. In turn, this could lead to even more lucrative broadcast rights deals for the NCAA.
What strategies do major sponsors use to maximize their investment in March Madness?
Major sponsors such as Coca-Cola, Capital One and AT&T historically invest in integrated marketing campaigns through March Madness. They leverage their brands across multiple platforms such as advertisements, commercials and social media. Also, they provide exclusive product bundles and promotions tied to the tournament through fan engagement, hospitality and VIP experiences.
How do brands leverage March Madness for marketing and fan engagement, especially in digital and social media spaces?
Brands such as Capital One create both commercial and social media content specifically around March Madness. These marketing campaigns start approximately two weeks before the first round, continue throughout the tournament and finish just as the tournament ends. They are specially targeted to create brand awareness and attachment between Capital One and March Madness, with an overall goal of joining them together in the audience’s minds.
What impact do sponsorship exclusivity deals have on consumer behavior and brand loyalty during the tournament?
Increased brand visibility and brand awareness is associated with sponsors of March Madness due to its high demand among sports fans and non-fans alike. The tournament has been built into a cultural phenomenon very similar to the Super Bowl. This symbiotic relationship can extend to a sponsor’s service or product and lead to a whole new target audience with the goal of gaining more customers and driving up their return on investment.
How are ticket prices determined for March Madness games, and what factors influence demand?
Ticket demand fluctuates year-to-year depending on the teams that make it to the finals. The ideal scenario is to have three large market teams and the loveable underdog in the finals. The underdog has always had an interesting effect on price demand, as the NCAA has built a cultural phenomenon around cheering for the underdog once “your team is out.” On the other hand, if four teams from smaller markets make the finals, the excitement on the court may not translate to the same financial payoffs.
What role does merchandising play in generating revenue, and how do sales trends fluctuate during the tournament?
Merchandise isn’t as big of a factor today as it was in the past. Historically, the NCAA puts out the official merchandise and creates a huge demand for it by publicizing a limited supply. But now with merchandise giants such as Amazon, people can get their hands on all kinds of merchandise without having to pay higher prices due to supply and demand.
