March Madness Stats & Facts
2:40 AMPosted by: John S Kiernan
Coming down with March Madness before the Big Dance may sound like an excuse to skip prom, but it actually describes our nationwide obsession with the NCAA Men’s Basketball Tournament. This 68-team basketball bonanza has been known to crown a Cinderella or two, produce at least one shining moment a year, and turn millions of Americans into illegal gamblers. It’s that good.
It’s also a big business both on and off the court, making millionaires out of coaches, conference commissioners and NCAA executives but very few players. Tournament time takes a toll on fans’ wallets, too, and not just in terms of the millions we lose in bracket pools each year. The average single-game ticket costs about $212, for one thing. Roughly 1.3 million extra barrels of beer are produced to keep up with increased demand. And there’s the potential for some workplace conflict, since distracted employees cost businesses about $6.3 billion per year.
In other words, there’s a lot more to this tournament than basketball. And since money plays at least as much of a role as love of the game, WalletHub analyzed March Madness from tip to title with a special emphasis on finance. You can check out all the interesting NCAA tournament stats and facts that we found in the infographic below. We also hosted a Q&A with a panel of sports business experts on topics ranging from college basketball’s economics to which team will cut down the nets in Phoenix. Enjoy the show!
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March Madness is one of the most entertaining guessing games on the calendar, but we wanted to add some more-educated insights to the prognostication mix. So we posed the following questions to a panel of leading sports business experts. You can check out their bios and responses below.
- Who are your Final Four picks?
- How do you characterize the NCAA tournament’s economic impact on its host cities?
- What’s the difference between early-round games and the Final Four?
- Where do you stand on the issue of paying college athletes?
- What are the biggest issues facing the NCAA today?
- Should daily fantasy sports be considered gambling?
Joshua A. Price Assistant Professor of Economics and Finance at Southern Utah University
E. F. Stephenson Henry Gund Professor of Economics and Chair of the Department of Accounting, Economics and Finance at Berry College
Donald L. Alexander Professor of Economics at Western Michigan University
Spencer Kimball Assistant Professor of Political and Sports Communication at Emerson College
Ronald Washburn Professor of Legal Studies in the Department of History and Social Sciences at Bryant University
Christopher A. Paul Associate Professor and Chair of the Communication Department at Seattle University
Nick Bowman Associate Professor of Communication Studies and Research Associate for the Interaction Lab at West Virginia University
Matt Fine Assistant Professor of Practice in the Department of Media Studies and Production at Temple University
Who are your final four picks?
I am risk-averse when it comes to making picks. I am aware that many number one seeds don’t make the final four, but every year, my final four are the top seeds. It’s very vanilla, but does make me competitive in the tournament challenge.
How do you characterize the NCAA tournament’s economic impact on its host cities?
I would characterize the economic impact as non-existent. Sure, there is money being spent on activities related to the tournament, but most of that is money that would have been spent elsewhere. It is not generating a measurable increase in economic activity. I am not familiar with studies that show consistent evidence that major sporting events, like the Final Four, increase economic activity in the host city.
I went to New Orleans for the Sweet 16 one year. I stayed one night in a hotel, three meals, and game tickets. I provided next to nothing to the New Orleans economy.
What’s the difference between early-round games and the Final Four?
Final Four games get a lot more attendance than early-round games. This last year, about 77,000 went to the national semifinal games (two games). Of those 77,000, many were locals from Houston. Not everyone comes from out of town. But even among those that do, the amount they spend in Houston is such a small drop in the bucket that is Houston’s economy.
In 2016, the First Four games in Dayton, Ohio drew an attendance of around 12,000. Other first-round games had attendance all below 20,000 fans. Many of these fans are from the local area, and as such, they are substituting spending that would have happened somewhere else in the city toward the game.
Where do you stand on the issue of paying college athletes?
If you make the argument that college athletes should not be paid because they are already getting a free education, then you have admitted that they are being paid. Their payment happens to be in a non-monetary form, tuition waiver. So, the argument should be focused on how should student athletes get paid. They are university employees by every definition of the word, and as such, should be able to receive a negotiated wage and benefits.
What are the biggest issues facing the NCAA today?
The biggest issue that I see with the NCAA is how they treat student athletes. The NCAA wants to monetize their athletic ability by exploiting the student athlete. Imagine if I have a student who is gifted and wanted to pursue a PhD in Economics (my field of study). My university does not prepare students for this career track, so this student wants to transfer to a better school. But I tell that student, if you transfer, you can’t do economics for a year, and here is a list of schools that I forbid you to attend. It sounds ludicrous, but that is the exact thing that happens to NCAA athletes. Coaches are not even held to that same standard.
E. F. Stephenson Henry Gund Professor of Economics and Chair of the Department of Accounting, Economics and Finance at Berry College
Who are your final four picks?
Virginia and Villanova look really strong. Duke certainly has the talent to be there, but has been inconsistent.
How do you characterize the NCAA tournament’s economic impact on its host cities?
Like many sports economists, I think the economic impact of sports events is oversold by both overstating benefits and ignoring costs associated with hosting Super Bowls, Final Fours, and the like.
My research focuses on hotel occupancy effects associated with various sports events. In a study of Indianapolis (which hosted the Final Four four times between 2000 and 2015), I found the average increase in hotel room nights over the four-day weekend (i.e., Friday night through Monday night) was about 31,000 additional rooms (around 7,750 per night). In a study of New Orleans (host city twice between 2000 and 2015), I found the average increase in hotel room nights to be about 21,000 over the four-day weekend (around 5,250 per night). The smaller net gain in New Orleans is primarily attributable to its being a prime weekend party destination, and therefore already having high hotel occupancy on Friday and Saturday nights even without the Final Four being in town.
What’s the difference between early-round games and the Final Four?
As for earlier-round action, Craig Depken (of UNC Charlotte) and I found that NCAA basketball tournament games played in the Charlotte metro area increase hotel room rentals by about 2,500 on game days. So, as one would expect, the effect is considerably smaller than that of the Final Four.
Where do you stand on the issue of paying college athletes?
I favor it. Star players generate lots of revenue for their institutions, and see little of it.
What are the biggest issues facing the NCAA today?
Paying athletes is a big issue. Another is the attendance decline over the past several years for NCAA football games.
Donald L. Alexander Professor of Economics at Western Michigan University
Who are your final four picks?
Michigan State, Purdue, Villanova, and Virginia.
How do you characterize the NCAA tournament’s economic impact on its host cities?
Like any other mega event, very little impact -- well-established results in sports economics.
What’s the difference between early-round games and the Final Four?
Teams earn more money from advancing.
Where do you stand on the issue of paying college athletes?
I firmly believe athletes should be paid. The universities and coaches are reaping the benefits that the athletes generate.
What are the biggest issues facing the NCAA today?
The current FBI investigation, the pending lawsuits, academic fraud (North Carolina), criminal activity, etc.
Spencer Kimball Assistant Professor of Political and Sports Communication at Emerson College
Who are your final four picks?
Villanova, Wichita State, Duke and Rhode Island. For the women, I expect UConn, and then the field.
How do you characterize the NCAA tournament’s economic impact on its host cities?
Positive. Hosting sites for the NCAA tournament bring out a younger demographic, and provide an economic boom to the local hospitality industry. Unlike the Olympics, or even the World Cup, which require infrastructure needs and costs, the NCAA tournament is generally self-contained within existing facilities.
What’s the difference between early-round games and the Final Four?
While most tournaments and sporting events are about the championship rounds, what is unique about the NCAA tourney is that the first four days are packed with buzzer beaters and upsets, and by watching from the beginning, fans can watch Cinderella stories unfold. I would argue that the excitement at the beginning, where every team and likewise their fans all think they can win, is an unofficial holiday in many offices. This excitement is palatable and might explain why the entire tournament receives so much media attention.
Where do you stand on the issue of paying college athletes?
I think scholarships are an equitable form of payment for college athletes, however, these athletes are not allowed in most cases to accept outside work to offset a lack of income. I do not think the universities should be paying the students, but rather if a college athlete is talented enough to have a clothing or shoe company want to hire him or her to endorse products that should be allowed, or if they want to work at a car dealership selling cars, that should be permissible. Instead of under the table payoffs and scandals, this would eliminate the dark side of the much-maligned recruitment process and make the money in college sports transparent.
What are the biggest issues facing the NCAA today?
As mentioned in the answer above, the inability for scholarship athletes to earn from their abilities is the biggest issue facing the NCAA. The top athletes are typically one-and-done even if they are not superstars, in the hope of being able to earn based on their ability.
Should daily fantasy sports be considered gambling?
Yes -- with that said, I think it can be a positive in the amount of fan engagement it creates, and the intensity people have for the teams and games. Anytime a player can influence a financial dealing, i.e., fantasy sports, there is the potential for foul play. However, if college athletes were able to earn money outside their scholarship, then it would make it less likely for a college athlete to be involved with bribery, fixing of games or point distribution across the team. The amount of money gambled on NCAA tournament polls is substantial, but I think it enhances the entire experience for the fans.
Ronald Washburn Professor of Legal Studies in the Department of History and Social Sciences at Bryant University
Who are your final four picks?
Michigan State, Duke, Kansas, and Arizona.
How do you characterize the NCAA tournament’s economic impact on its host cities?
Viewership, ticket sales and merchandising certainly are valuable for any of the host cities, along with the hype that goes along with the games. This hype most likely leads to enhanced interest in the college and NBA teams situated within the host cities, and a positive economic impact therefrom.
What’s the difference between early-round games and the Final Four?
From an economic standpoint, very little compares to the Final Four. As one of the most valuable sports commodities, the Final Four represents an economic powerhouse that rivals the Super Bowl. The early-round games are certainly economically viable, but rarely match the Final Four, unless we see an immense underdog -- that mega low seeded team that beats several high seeds and captures the national audience.
Where do you stand on the issue of paying college athletes?
I believe college athletes are paid through their education, per diem and the value of their participation. Due to laws such as Title IX, which require gender parity in school programming, I think it would be virtually impossible to implement any kind of payment system. Further, such a system, unless implemented uniformly, would give some schools a decided advantage in their recruitment efforts.
What are the biggest issues facing the NCAA today?
The NCAA sits well as it owns a monopoly on the economic value of collegiate sports. Fairness in recruiting is probably its largest concern. Its brand is strong, as we see the Tournament and bowl games doing very well. I do forecast a lawsuit on the horizon against the NCAA regarding concussions and the safety of players. If the NFL owes a duty to its players, should the NCAA not owe an even greater duty, since it deals with college athletes at much younger ages?
Should daily fantasy sports be considered gambling?
I do not see how fantasy sports are different than games such as poker. The player calculates odds and makes decisions based upon information gathered. I also enjoy both very much, and believe in their deregulation, particularly online.
Christopher A. Paul Associate Professor and Chair of the Communication Department at Seattle University
Who are your final four picks?
I’ve got two kids now, so my NCAA watching time has plummeted. I grew up in Wichita though, and work at a Jesuit institution, so let’s roll with Villanova, WSU, Gonzaga, and KU, depending on seeding and brackets.
What’s the difference between early-round games and the Final Four?
More teams early, more people later.
Where do you stand on the issue of paying college athletes?
I absolutely think they should get a cut of the money institutions are making off of their labor. The idea of the student athlete was formed in a different media landscape, with vastly different revenue streams. It’s a multi-billion-dollar industry that doesn’t pay its most important labor. That’s sad.
What are the biggest issues facing the NCAA today?
Balancing the alleged focus on academics with the massive influx of revenue. The systems are broken and likely need to be fundamentally rebuilt.
Should daily fantasy sports be considered gambling?
Probably, but they’re rigged games. Gambling laws should also likely be liberalized and sports betting may be quite soon.
Nick Bowman Associate Professor of Communication Studies and Research Associate for the Interaction Lab at West Virginia University
Who are your final four picks?
I have to go with my alma mater, Michigan State University. I also have to go with my current employer, West Virginia University. MSU has pulled together through some incredible (and deserved) scrutiny, and WVU has been sharp overall -- past hiccups seem to be behind them, and folks in Morgantown are still smarting from last year’s flat exit. I guess I have to toss another Big 12 Team into the Final Four in Kansas (although as a Missouri boy, that’s hard for me to say out loud). Let’s leave the fourth slot for a Cinderella this year, and if it’s Michigan, then I’ll have somebody to cheer against.
How do you characterize the NCAA tournament’s economic impact on its host cities?
I lived in St. Louis when they hosted the Final Four in 2005, and I’ve been around host cities before -- this year, Pittsburgh has an early regional. From an observational standpoint, the entertainment industry booms, and in a very social fashion -- it’s not enough to simply wear T-shirts and change Facebook status pages and banners, but you have to dress up, head to the team hotel, find a local sports bar to take over, and stay out all night to show fandom publicly. Sports fandom becomes a person’s core social identity, and they’re motivated to travel to those host cities to put it on full display: personal finances become an afterthought for the honor and duty to be “part of the team” for the entire weekend.
Host cities benefit in an obvious way with respect to sales and occupancy taxes, as well as some short-term gains in entertainment venues (bars, restaurants, etc.) filling to capacity. In the longer term, folks take back some memories of those host cities, and start to consider other ways to revisit. From a cost perspective, beyond perhaps added security and police patrols, and perhaps some modest marketing, there’s very little that a host city has to do, other than keep the lights on and the doors open.
What’s the difference between early-round games and the Final Four?
Intensity and focus. Early-round games are fun, but they’re expected and they’re a grind -- even die-hard fans are better at their house or their hometown sports bar, so that they can follow all of the action, because their energies (and their cash) have to be spread across several events at once. Entertainment venues that can tap this, such as the local sports bars are maybe even superior to attending the games themselves. For later games, focus becomes more narrow, as the number of eyes watching a single event grows, which multiplies the intensity of those events -- which all crescendos into an explosive weekend.
Where do you stand on the issue of paying college athletes?
Many students receive stipends for their scholarships, especially at the graduate level, for their services to the University. I worry very much that the dynamics of college athletics would change if athletes shifted from being student athletes to employees of the University -- we already have issues in which students place more priority on their jobs than they do on their studies, and it causes them to suffer in the classroom (which is supposed to be their primary focus while in school, whether we want to believe this or not). So, I do worry that paying athletes outright would distance many of them from the classroom even more, which is very dangerous for those 99 percent of athletes who will never play again after college (not to mention, it’s generally good that a professional athlete also be an educated person).
At the same time, I recognize that the money made off of these athletes is almost ludicrous, and rarely makes it back into the broader system -- even my own salary is among the lowest in the Big 12 for my profession. I think that the decision is more complicated than simply writing checks to athletes, but I would have no objections to offering stipends to athletes; again, many students on campus receive stipends (including many research and teaching assistants). Functionally, it’s probably the same as paying them; semantically, it’s recognizing that their contributions to the University are valuable and that they deserve some sort of security for that.
What are the biggest issues facing the NCAA today?
A loss of focus. It’s not clear to most people what the NCAA should be responsible for. I get the impression that the NCAA is a collection of rules that are broken, but that’s about it. The NCAA is supposed to exist to ensure the integrity of collegiate athletics, but I’m not actually sure that we (collectively) have an understanding of what “integrity” means -- we’ve got from student athlete benefits and eligibility cases to pedophilia, Title IX, and curriculum evaluation. I somewhat wonder if the NCAA has a bit of a clouded vision as to what its core mission is. The statement of “Prioritizing academics, well-being and fairness so college athletes can succeed on the field, in the classroom and for life” seems to be out of alignment with many of the actions that the NCAA seems to be involved in, at least as discussed in the headlines. At the very least, the NCAA is a very misunderstood organization, and I believe it’s due to a lack of focus.
Should daily fantasy sports be considered gambling?
That depends on how we’re defining gambling and why the designation would matter. Players are wagering cash against others for their DFS games, and there should probably be some protection in place to ensure that the games are on the “up and up” -- a few years ago, you might remember when employees of fantasy sports companies were using their own data to play (and win); essentially a form of insider trading. Gaming/gambling regulations would prevent these sorts of things from happening. Requiring DFS companies to register with local gaming/gambling boards is probably not a bad idea, and might even bring a lot of legitimacy to the contests.
Matt Fine Assistant Professor of Practice in the Department of Media Studies and Production at Temple University
Who are your final four picks?
I wish I had a crystal ball. Picking teams in the first round is hard enough -- let alone picking the final four. I am always wrong. But that's never stopped me. Let's roll with Wichita State, Virginia, Kansas and Michigan State.
How do you characterize the NCAA tournament’s economic impact on its host cities?
The economic boom for host cities is incredible. All sorts of studies have been done documenting the millions of dollars these cities get. As a "neutral site" sporting event, this tournament runs through so many parts of the country. And it's not one day and done. Each city gets two rounds -- that's four days of action for each site. And it's not just two teams coming to town. First and second round sites have eight teams coming to play. With eight teams, that opens up the entire city for business -- not just the area around the basketball arena. It's a real scramble for most of these teams and the fans who follow to get to these cities. The field is announced just days before the tournament starts. And because of all of the upsets, it's hard to predict which teams might be coming to town in weekends two and three.
Where do you stand on the issue of paying college athletes?
The NCAA is a huge money-making machine, and it does it on the backs of the athletes who are the entertainment arm of this machine. Where else can you find such a relationship? These athletes should be compensated in such a relationship -- beyond the paid tuition, room and board. Pay the athletes and they can better support their families, and it might limit the corruption from agents who take advantage of these young athletes and their families. But if you pay the athletes, what will be the pay scale? Who will get the money and how much? What will these 18- and 19-year-olds do with this money? And what incentive is there to go to class? There isn't much of an incentive in its current state for top players in the top sports to attend class to begin with, thanks to many factors, most notably -- the one and done.
In its current state, the NCAA is a mess. You have major schools like Arizona, UNC, Duke, Kentucky and Louisville being investigated for recruiting violations. Many studies have concluded that Division 1 players in sports like baseball, basketball and football currently spend more time on their sport than they do in class. Both sides of this argument haven't been able to present a strong case. I believe these athletes should be paid. But I am not sure how to make it work.
What are the biggest issues facing the NCAA today?
See the answer to the question above. The NCAA is a big business. It's only getting bigger. Money changes everything -- and it's impossible to police it.
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