March Madness: As Your Favorite Team Falls, Profits Rise
It’s that time of the year again when brackets are busted and the focus around offices, sports bars and campuses has turned to college basketball. Though your tournament bracket may not have done so hot, there are winners in places one may not expect aside from the final team that gets to cut down the net and their supporters through this march madness.
The National Collegiate Athletic Association (NCAA) Men’s basketball tournament is an annual event that brings in billions of dollars of revenue for the companies that have a part in the three week long showdown that displays the best teams in the country. Correlation to game times and work productivity decreasing have been heavily noted as people are constantly checking in on the games’ scores and there are so many new ways to keep up with the action. Whether sneaking a peak of the games from a desk on a mobile phone, or calling in sick to go to a viewing party, millions of people stop what they are doing to get the score and watch the highlights.
Watching these games however, wouldn’t be possible without the major television companies that show all sixty-seven. CBS and Time Warner have spent billions of dollars on broadcasting rights to the March Madness tournament and it has proven to be a great investment for them. As one of the largest viewing events of the year, companies spend billions of dollars on advertisements as well, making the tournament very profitable for these broadcasting companies, and therefore worth the price they pay as well.
Other business winners include major uniform sponsors of the teams playing in the tournament such as Nike, Under Armour, and Adidas. All benefit from the increased amount of airtime their brands get from the March Madness broadcasting. Nike alone sponsors forty-three different schools but all three companies use the tournament as an opportunity to showcase their latest products and innovation. Buffalo Wild Wings also takes part in the advertising frenzy. As the official sponsor of the event, they use the tournament to unveil their latest advertisements and campaigns, as well any new menu items and deals. Though March Madness alone is enough to bring in extra revenue, Buffalo Wild Wings typically sees a spike in profits earlier in the quarter as well due to their Super Bowl showings and campaigns two months prior.
It’s every college basketball players dream to play in the March Madness tournament, but this stage wouldn't be nearly as big if it wasn't for the millions of fans across the country tuning out their own lives and into these college games. Though your bracket may have been ruined in the first round and your favorite team has fallen, the major companies that have a role in this tournament can sit back easy knowing their investments won’t be “busted” anytime soon, the tournament helping activate their brand throughout the weeks.
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