Spotlight on March Madness: Are Student-Athletes Fairly Compensated?

It’s that time of year again where everyone is abuzz with brackets, office pools, and Cinderella stories. Yes, March Madness has arrived! This month-long NCAA Division I men’s basketball championship tournament brings in billions of dollars in revenue each year.

But what about the “student-athletes” who make this all possible? Are they really benefiting from the money that is being brought in? Let’s take a closer look at March Madness and the debate around amateur student-athletes.

What Is March Madness?

March Madness is the term coined in 1973 for the annual NCAA Division I men’s basketball tournament that has taken place each spring since 1939. The tournament features 68 college teams from around the country who compete in a single-elimination tournament to determine the national champion. The tournament bracket is a popular betting focus for even those who don’t otherwise closely follow the sport.

How Much Money Does March Madness Bring In?

March Madness brings in billions of dollars in direct and indirect revenue each year. Most of it comes from television rights fees and corporate sponsorships. In 2014, CBS and Turner Sports paid a combined $770 million for the right to broadcast the tournament games through 2024.

In the most recent fiscal year, the NCAA brought in $1.15 billion in revenues. And most of that revenue can be attributed to March Madness. Money changes hands over broadcast rights, tournament ticket sales, and a multitude of high-dollar corporate sponsorships and television ads.

Additionally, corporations such as AT&T, Coca-Cola, and Capital One are some of the biggest sponsors of March Madness. These companies pay millions of dollars to have their brands associated with the tournament. We also tend to see major brands enlist former college basketball stars for commercials that air during March Madness.

For example, beer giant Corona released a commercial featuring current NBA star Devin Booker (Kentucky, 2014–15), current WNBA star Sue Bird (Connecticut, 1998–2002), and former NBA players Vince Carter (North Carolina, 1995–1998) and Christian Lattner (Duke, 1988–1992). These stars were also talented college athletes, helping to lead their respective school teams to championships. Of course, none of them ever profited off their participation in March Madness while they were students.

Are Student-Athletes Benefitting?

The debate around whether student-athletes are benefiting from the money generated by March Madness has been going on for years. Some argue that student-athletes should be paid for their labor.

Others argue that they are already being compensated through scholarships and other benefits. Currently, the students do not benefit financially in any direct way from the massive television broadcast deals or the legal gambling that surround March Madness.

March Madness and the New NIL Rule

One of the ways in which student-athletes are now able to benefit from their status is from the recently approved “Name, Image, Likeness” (NIL) rules. These rules allow student-athletes to profit from their name, image, and likeness beginning in July 2021.

This means that student-athletes will be able to sign endorsement deals, appear in commercials, and profit from social media sponsorships. While some have criticized the NIL rules as being unfair to non-student-athletes, others argue that it is a step in the right direction for compensating student-athletes for their labor.

For schools that make it into the NCAA Tournament, this is a great opportunity for their student-athletes to benefit financially from national attention. With the new rules, having a big game on a national stage can be very lucrative. This is even more incentive for a team to play hard to earn a spot in the tournament.

Unlike the college football playoffs, which tend to feature the same big schools annually, even in their expanded format, the NCAA men’s tournament and other divisional tournaments are relatively inclusive. In fact, though the Division I tournament is what draws the most attention, March Madness in its entirety consists of three tournaments, one each for Division I, II, and III.

Division I is home to the largest universities and colleges, whereas Division II and Division III member schools are smaller in size. However, all three tournaments see a fair amount of attention, and more games are broadcast on major networks than any other time during the college basketball season.

Takeaways on March Madness and Amateur Student-Athletes

As we enjoy the excitement of March Madness, it’s important to remember the debate around amateur student-athletes and whether they are being fairly compensated for their labor. While the new NIL rules represent a step in the right direction, there is still more work to be done to ensure that all student-athletes can benefit from the billions of dollars generated by their performance in college sports each year.

For now, enjoy the tournament and root for your favorite team! But remember, there are real people behind the games you’re watching and betting on. Let’s make sure they’re getting a fair shake too.