For the NCAA, the madness in March isn’t just about buzzer-beaters and bracket busters; it’s about securing over 80% of its entire annual revenue in just three weeks. It’s the most profitable time of the year for college basketball as March Madness tips off.

So, how much money do these tournaments make for the NCAA?

How Much Revenue Does the NCAA Generate From March Madness?

The NCAA generates over $1 billion annually from March Madness, with the men’s basketball tournament alone bringing in more than $900 million in fiscal year 2024. This makes March Madness the NCAA’s primary revenue source, far surpassing other sports or events.

March Madness, as the name itself suggests, brings a total frenzy in college basketball, and as you can imagine, it’s because of the number of eyes it gets on the sport. And more eyes bring more business and profitability, and the earning goes up to unimaginable heights.

As per their latest earnings, March Madness contributed over $900 million from the men’s tournament alone. March Madness dominates the revenue stream with its licensing, ticket sales, and corporate sponsorships. You also get corporate sponsorships with major brands like Coca-Cola, AT&T, and Capital One, which invest heavily in March Madness advertising.

The media rights make the bulk of the earnings as the NCAA’s broadcast deal with CBS and Turner Sports is worth $8.8 billion over 8 years (2011–2020) and extended to $10.8 billion through 2032, making TV rights the largest revenue driver.

Where Does the NCAA’s March Madness Revenue Come From?

The NCAA’s March Madness revenue comes primarily from TV and media rights, which account for the majority of its annual income (over $900 million from the men’s tournament alone in FY 2024). Sponsorships, ticket sales, merchandising, and licensing deals make up the rest, but television contracts remain the single largest driver.

Now let’s talk about all these different sources of revenue streams that come into play.

• TV & Media Rights

The upcoming men’s basketball tournament will mark a notable financial milestone for the NCAA: It is the first that will pay the governing body $1 billion in broadcasting rights.

That’s thanks to built-in escalators in the NCAA’s longstanding media deal with Turner and CBS, which currently runs through 2032. The two partners paid a combined $995 million for last year’s tournament, according to the NCAA’s audited financial statements, and will pay $1.02 billion for this year’s version.

This is a huge leap from the $900+ million from media rights that they were getting in 2024. Even last year, the governing body reported $1.57 billion in total revenue, with $1.12 billion from media deals and $279 million from ticket sales and sponsorships across all of its championship events, which shows media deals are booming.

• Sponsorships & Advertising

Advertising revenue during the tournament is among the highest in U.S. sports, rivaling the Super Bowl in per-game ad rates. Sponsorships contribute hundreds of millions annually, reinforcing March Madness as a marketing powerhouse.

• Ticket Sales & Merchandising

It’s the host cities that make the most profits, benefitting from sold-out arenas with ticket sales adding tens of millions to NCAA coffers. On top of that, you have individual college merchandise (jerseys, hats, collectibles) tied to March Madness, which generates significant additional revenue. The single-elimination format creates a national hype that puts fans on the edge of their seats and drives spending on everything from tickets to merchandise.

Licensing Deals

NCAA licenses the “March Madness” brand for use in video games, apparel, and promotional campaigns. The licensing revenue is smaller compared to TV rights, but still a steady contributor to the billion-dollar ecosystem. Combined with sponsorships, licensing helps extend the brand beyond the tournament itself.

How Much Is the NCAA’s TV Deal for March Madness Worth?

The NCAA’s current TV deal for March Madness with CBS Sports and Turner Sports (now Warner Bros. Discovery’s TNT Sports) is worth $10.8 billion over 14 years (2011–2032), averaging about $770 million annually. This long-term agreement is the single largest source of NCAA revenue, making March Madness the financial backbone of the organization.

One of the main reasons why this huge influx of funds has been made possible is because of the breakthrough of women’s basketball stars like Caitlin Clark, Paige Bueckers, and Angel Reese, who have burst onto the scene. These players have managed to generate a $920 million TV deal with ESPN that covers more than a dozen championships.

The new deal, which began last year, represents a massive financial leap, averaging $115 million annually—more than triple the previous $35.7 million per year agreement. This growth is stark when looking at the fiscal year payments: the old deal paid the NCAA $47 million in 2024, which jumped to $99.9 million in 2025 and is projected to hit $103.8 million this year, highlighting the rapidly changing landscape of women’s basketball.

How Does the NCAA Distribute March Madness Revenue?

The NCAA does not keep all of its March Madness revenue. Instead, it distributes a large portion to conferences and schools through a system called “NCAA Tournament units.” Each game a team plays in the men’s tournament earns its conference a unit, which is then paid out annually over six years.

For the record, each game played in the men’s NCAA Tournament (including the First Four, all rounds, and now the Final Four + championship game) earns a unit for the team’s conference. From 2026, there was a shift in the rules as the NCAA expanded unit eligibility to include the Final Four and national championship, increasing the total number of units awarded to 135 per tournament.

Speaking of the units now, each one of these units is worth about $2 million over six years (roughly $330,000–$340,000 per year). For example, if a conference earns 10 units in a single tournament, it will receive about $20 million spread across six years.

The units are awarded to conferences, and they do not go directly to the schools in general. The NCAA urges conferences to divide the money equally among their member schools, and many conferences do just that, making it an easier means of distribution.

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. So it varies according to the size of the conference.

How Do Schools and Conferences Make Money From March Madness?

Schools and conferences make money from March Madness through the NCAA’s “unit system.” Conferences earn units for each game their teams play in the men’s tournament, and those units are paid out over six years. Conferences then distribute the money to member schools, which use it for scholarships, facilities, recruiting, and athletic operations.

The conferences earn money through the tournament games. Each game played in the NCAA men’s tournament earns a unit for the team’s conference, where each unit is worth about $2 million over six years (roughly $330,000 annually).

This is followed by the conferences distributing the money to the schools, where each conference has its own set of rules. While some split evenly among all members, others more often than not reward schools that advanced further in the tournament. The NCAA distributes about $270 million annually from March Madness units.

This same money is used for different means:-

Scholarships – This helps fund athletic scholarships for student-athletes, which is very important for families that come from a lower-income household.

Facilities – Supports upgrades to arenas, training centers, and equipment.

Recruiting – Provides resources for scouting and attracting talent. Like we all know, the better the NIL budget, the better the talent it attracts.

Operations –  Covers travel, staff salaries, and program development.

This kind of financial system has a tremendous impact on smaller schools, where a single upset win can earn a smaller conference millions over six years. There are also opportunities for increased visibility once a team makes a deep run in the tournament.

For example, for the first time in 32 years, three HBCU men’s basketball programs landed in the same NCAA Tournament field. Prairie View A&M (SWAC), Howard (MEAC), and Tennessee State (OVC) all earned bids to the 2026 NCAA Division I Men’s Basketball Championship, and they would see them earning substantially from earning bids and units.

Does the NCAA Keep Any Profit From March Madness?

As a non-profit organization, the NCAA does not keep profits from March Madness in the traditional corporate sense. Instead, it uses the revenue to generate a large annual surplus.

Unlike a for-profit corporation that distributes profits to shareholders, the NCAA operates as a non-profit, reinvesting its ‘surplus’ (excess revenue after expenses) back into its championships, programs, and member schools.

Championships – Funds more than 90 NCAA championships across men’s and women’s sports.

Operations – Covers NCAA staff, governance, compliance, and infrastructure, which are very important to maintain a smooth flow.

Revenue Distribution – The unit system allows the conferences to earn payouts based on their individual tournament performances, which are then shared with schools.

Athlete Programs – Supports scholarships, health and safety initiatives, and student-athlete development, which are very much critical for the smooth running of the college programs.

Ultimately, March Madness isn’t just a tournament; it’s the financial engine that powers a significant portion of college athletics. Without it, the entire ecosystem, from scholarships at small schools to championship events in non-revenue sports, would face an existential crisis.