Written by: Becca Dettlaff
Like all national sporting events, March Madness has got everyone’s attention, which means the amount of money going into these games have an incredible effect on the economy. The economic effect of college sports continues as billions of dollars are expected to be poured into this sixty-eight team basketball tournament. Although the amount of money put into these sporting events it can have a very helpful impact on our economy.
Just in the city of Houston, Texas alone is expecting to generate around $300 million worth of revenue from the Final Four, which will benefit them and make the taxpayers of Texas feel better about eight million dollar subsidy they provided to the tournament.
Money generated by hosting the Final Four is just one of the many ways March Madness is having an impact on the total GDP and economic earnings. The money from the TV advertisement as well as broadcasting rights are estimated to bring in enormous amounts of money. For example, CBS and Turner were estimated to each pay ten billion dollars for broadcasting rights in 2016, and that number has only been increasing. A normal thirty second TV ad sold at around a million dollars and ad revenue from past March Madness’s brought in over a billion dollars.
These are just a few of the many benefits and contributions to the economy that this tournament provides. Another portion of the total revenue of March madness is the ticket revenue generated. The average one game ticket for a Final Four game this year ranges from $250 to $7,500. Not only does this tournament increase the overall GDP of the United States, but it provides for more advertisements for companies to promote their products and services at the games. This in turn could overall provide for more jobs and more consumer spending, boosting the economy in all aspects.
In conclusion, we can all stop and take a step back and look at how large of an impact March Madness has on the economy. Just like all national sporting events, they bring opportunities for business, and increase consumer spending all across the country. Whether its spending money on food and beverages for parties, or betting on which team is going to make it to the Final Four, one thing's for sure, that this event not only entertains Americans, but it boosts the economy in so many ways.
Ogus, Simon. “The Economic Impact Of March Madness From First Four To Final Four.”Forbes, Forbes Magazine, 24 Mar. 2016, www.forbes.com/sites/simonogus/2016/03/17/the-economic-impact-of-the-ncaa-basketball-tournament-from-first-four-to-final-four/.
Athlon Sports. “Economic and Social Impact of March Madness (Infographic).”AthlonSports.com, athlonsports.com/college-basketball/march-madness-numbers-economic-social-impact.