How Much Money does the SEC make from Basketball?

[Reb Talking18]

Among conversations of rising roster spots, I got curious and decided to do some research into how much the SEC stands to profit from investing in basketball.

Men's NCAA Tournament payouts in 2023​

Projected payouts by conference based on units (games played)
Table showing the Men's NCAA Tournament payouts in 2023 with the number of games played. The SEC had the most, with eight bids, 17 games won, and a possible $34 million payout. thirteen other tournaments are listed, with payouts ranging from $32 million to $4 million. Eighteen other conferences are grouped together, with only $2 million in total payouts and one game won.
MISSING: summary MISSING: current-rows.

	Bids	Units won	Payout
SEC	8	17	$34m $34m
Big 12	7	16	$32m $32m
Big East	5	15	$30m $30m
Big Ten	8	14	$28m $28m
ACC	5	12	$24m $24m
Mountain West	4	8	$16m $16m
Pac-12	4	7	$14m $14m
WCC	2	6	$12m $12m
C-USA	1	5	$10m $10m
American	2	4	$8m $8m
Ivy	1	3	$6m $6m
Northeast	1	3	$6m $6m
Southland	1	2	$4m $4m
Southern	1	2	$4m $4m
18 conferences	1	1	$2m $2m

How much of March Madness money goes to universities?​

In 2010, the NCAA signed a 14-year, $10.8 billion contract with CBS Sports and Turner Broadcasting, which annually broadcasts the tournament. It was extended in 2016 until 2032 for another $8.8 billion. About 90% of the earnings immediately go to the universities.

How is the March Madness money divided?​

Of the 68 teams that play in the tournament from the start, the respective conferences will have a “Basketball Performance Fund,”which was around $170 million last year. For each game played, each team’s conference will get a payout based on its performance over a six-year rolling period with “units” distributed for its participation. A unit’s value will rise by 3% every year. If a team makes it to the final, they can create as many as five units. According to Sportico, a unit was worth $337,141 in 2021. In 2022, $169.4 million was paid out from the performance fund.

 

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[Reb Talking18]

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