:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1454231857-e8389bdd69824e1abc194cc29b7bce4a-c4efc5e1073747f694f6aabf264c80d3.jpg)
March Madness is big business for the National Collegiate Athletic Association (NCAA), when its most anticipated basketball games tip off. The men’s tournament brought in more than $900 million in fiscal year 2024.
Key Takeaways
- The NCAA earned $1.38 billion in revenue in fiscal year 2024, with much of it coming from March Madness. The men’s tournament brought in more than $900 million.
- Despite the huge sums of money raked in by the NCAA, the players have historically received zero compensation. This may be changing, thanks to a pending $2.78 billion settlement.
- Following a U.S. Supreme Court ruling, 2022 was the first year when players could earn money from endorsement deals and sponsorships.
- The NCAA shares its March Madness revenues with the participating athletic conferences based on the performance of their member schools.
- Broadcast rights to college sports (Turner and CBS) continue to be the major source of income for the NCAA, bringing in $873 million in 2024.
What Is the Size of the Pot?
In the 2024 fiscal year, college athletics’ governing body earned $1.38 billion in revenue, with broadcast rights (Turner and CBS) accounting for $873 million of that.
On the surface, that seems like cause for outrage, especially in light of how much the players earn: nothing. Though that may change, thanks to a pending $2.78 billion settlement that will be decided this spring.
While players make no money from March Madness (yet), they can now get paid for endorsement deals, following a U.S. Supreme Court ruling in 2021. This was after the NCAA blocked players from earning money for decades.
Important
A 2021 rule change allows NCAA athletes to earn money from their names, images, and likenesses (NIL), though they’re still prohibited from being paid to play while in school. Many states have also passed NIL laws.
How Tournament Money Gets Divided
The NCAA doesn’t keep all of the money it receives from March Madness-related media and marketing deals, but distributes much of it to its member sports conferences, based on the number of tournament games their teams played in.
The conferences then divide the money among all their teams, using their own formulas. In 2024, the total amount of money awarded for games during the men’s basketball tournament was about $226 million. That’s broken down further. In 2023, for example, Southeastern Conference (SEC) teams played in 17 tournament games and earned the highest estimated payout of $34 million. Big 12 conference teams were next, playing in 16 games and earning an estimated $32 million, according to Sportico.
Of course, each conference wants to see as many of its member schools in the tournament as possible, to raise the payout that it receives. For smaller, lesser-known conferences, that money can represent a major portion of their annual income.
When a surprise team that is virtually unknown makes it through multiple rounds, the payout can represent a much-needed cash injection for its conference. For larger conferences, however, such as the Atlantic Coast Conference (ACC) or the Big Ten, the money is more like financial icing on the cake than a major source of revenue.
How Earnings Are Shared Within Conferences
The NCAA urges conferences to divide the money equally among their member schools, and many conferences do just that. Larger conferences, which have multiple sources of income, routinely divide up most of the money and send it to their member schools’ athletics programs. Smaller conferences, however, may count on that money to cover their own expenses. Only whatever is left over goes to member schools.
Fast Fact
In 2025, Americans will legally wager an estimated $3.1 billion on March Madness (up from $2.7 billion in 2024), according to the American Gaming Association.
How Much Are the NCAA’s Annual Revenues?
For the 2024 fiscal year, the NCAA generated $1.38 billion in revenues. March Madness accounts for most of that, in the form of broadcast rights, ticket sales, corporate sponsorships, and television advertising.
When Was the First NCAA Basketball Tournament?
The first NCAA men’s basketball tournament took place in 1939, with eight teams participating. The University of Oregon played The Ohio State University in the finals, with Oregon winning 46-33.
How Many Teams Play During March Madness?
A total of 68 teams currently play in the NCAA tournament, a number that’s narrowed down through seven rounds. For 2025, March Madness began with Selection Sunday on March 16, when the NCAA announced the teams and brackets, and culminates on April 7, with the NCAA championship game.
The Bottom Line
There’s been plenty of criticism over the years regarding the funding model used by the NCAA. The colleges receive only a portion of the money they generate through sports competitions, and the players see none at all. However, new NCAA rules and state laws have made it possible for at least some athletes to benefit from the marketing of their names, images, and likenesses. And under a pending $2.78 billion settlement, players would begin receiving compensation via a new revenue-sharing plan. A settlement hearing is scheduled for April 7, and a judge is expected to issue a decision in the coming months.
