INDIANAPOLIS, INDIANA – MARCH 13: Jackson Shelstad #3 of the Oregon Ducks attempts a shot over Luke … [+] Goode #10 of the Indiana Hoosiers during the first half of a second round game of the Big Ten Men’s Basketball Tournament at Gainbridge Fieldhouse on March 13, 2025 in Indianapolis, Indiana. (Photo by Aaron J. Thornton/Getty Images)
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As the Indiana vs. Oregon game plays out right now in the second round of the Big Ten Tournament, its potentially millions of viewers should know this matchup represents far more than just an exciting basketball contest.
This high-stakes game is another illustration of why March Madness continues to be one of the most significant financial engines driving collegiate athletics in America.
The economic implications extend beyond the court, affecting athletic departments, conferences, universities, and local economies.
March Madness: Money Making Money Machine
According to the Associated Press, the NCAA generated $1.28 billion in revenue, approximately $1 billion from March Madness.
This revenue stream primarily derives from broadcast rights, with CBS and Turner Sports paying for airing games like Indiana vs. Oregon.
Per Sport Finance (5th edition) by Gil B. Fried, Timothy D. DeSchriver, and Michael Mondell, the current broadcast agreement, which runs through 2032, is valued at approximately $8.8 billion after the 2016 extension.
Dollar amounts are in millions. Educational programs: $10.4 million. Data from National Collegiate … [+] Athletic Association (2016, May 13), Where does the money go?
Brian J. Roberts
The financial impact of March Madness extends far beyond the NCAA’s coffers. According to NCAA financial information, roughly 60% of all money collected flows directly back to member institutions.
This redistribution occurs through specialized funds rather than direct cash payments, creating a complex financial ecosystem that rewards tournament participation and success.
One significant mechanism for this distribution is the basketball performance fund, which was valued at nearly $170 million in recent years.
This fund explicitly targets the 68 teams fortunate enough to receive invitations to the tournament, creating powerful financial incentives for programs to qualify.
However, the financial model behind March Madness has faced persistent criticism for decades. According to a September 2003 study from the College of The Holy Cross that examined the tournament’s economic impact. The authors note how cities ‘invest’ significant public resources to host the NCAA tournament.
But the Holy Cross analysis found that the economic impact for host cities is, on average, small and may even be negative sometimes over long timespans, contradicting the financial windfall rhetoric.
It can also be a double-edged sword.
According to Baumer and Zimbalist’s 2019 study on The Impact of College Athletic Success on Donations, poor team performance in tournaments can diminish contributions or even lead to the withdrawal of recurring funds.
The High Stakes of Tournament Qualification
Today’s Indiana vs Oregon matchup carries enormous financial implications for Indiana and Oregon beyond just advancing in the Big Ten Tournament.
Indiana’s tournament hopes remain precarious, with bracketology experts suggesting they need a strong showing to secure an NCAA Tournament bid.
The Hoosiers, having lost to the Ducks 73-64 in their previous meeting on March 5, have an opportunity for redemption with significant financial consequences attached to the outcome.
The mechanism through which tournament participation generates revenue involves a unit-based system that rewards conferences based on their members’ tournament appearances and victories.
Each game a team plays in the NCAA Tournament (excluding the championship game) earns their conference one “unit,” with each unit worth approximately $2 million in 2024.
These units are paid out over six years, creating a long-term revenue stream based on tournament success.
According to a January 2025 story by Dalton James of Indiana Daily Student, Indiana’s athletic department reported a $3.1 million deficit in the 2024 fiscal year despite generating $173.5 million in total revenue. Thus, NCAA Tournament participation could be valuable.
The deficit came despite a $28.8 million increase in revenue from the previous year, highlighting the challenging financial environment even central athletic departments face in today’s collegiate landscape.
Realignment Of Indiana Vs. Oregon and Big Ten
This matchup between Indiana and Oregon exemplifies the financial forces reshaping college athletics through conference realignment.
Oregon only recently joined the Big Ten Conference, having previously been a member of the Pac-12. This transition represents part of the seismic shifts in collegiate athletics, primarily driven by financial considerations related to media rights and revenue distribution.
The collapse of the Pac-12 left only Washington State and Oregon State as members of what some now jokingly call the “Pac-2.” Sports columnist John Canzano said these schools earned approximately $18 million in NCAA Tournament units this year despite this diminished status.
This peculiar situation highlights how tournament success can generate substantial revenue even for conferences in transition or decline.
Meanwhile, the Big Ten has emerged as one of the financial powerhouses in collegiate athletics. The conference earned $46 million from the College Football Playoff alone, with each of its 18 member schools receiving nearly $2.6 million.
The Big Ten’s lucrative media rights deals further enhance the financial benefits of membership, making it an attractive destination for schools like Oregon seeking stability and maximum revenue potential.
The Evolving Financial Model of College Athletics
The Indiana-Oregon matchup occurs against significant transitions in how collegiate athletics generates and distributes revenue.
Sports Business Journal reported in January of this year that Indiana’s athletic department recently eliminated 25 positions, with 12 positions left unfilled and 13 employees laid off, as it prepares for a new revenue-sharing model that will allow direct payments to athletes.
This restructuring reflects athletic departments’ broader challenges as they adapt to changing economic and regulatory environments.
Local Economic Impact of March Madness
Beyond the direct financial benefits to schools and conferences, March Madness generates substantial economic activity for host cities.
Cities hosting tournament games can expect revenues ranging from $10-18 million from visiting fan spend. Speaking to local WBTV in March 2024, Charlotte City Council Mayor Pro Tem Dante Anderson estimated the tournament generated an economic impact “of at least $10 million.”
The influx of basketball enthusiasts creates a mini-economic boom that extends well beyond the arena, benefiting local businesses and generating tax revenue.
For Indianapolis, which is hosting the Big Ten Tournament, this represents a valuable economic opportunity.
The city has a long history of successfully hosting major basketball events, including the unique “bubble” format of the 2021 NCAA Tournament during the COVID-19 pandemic.
The tournament provides national media exposure and showcases the city to a broad audience, potentially attracting future visitors and events.
Sports Betting, Fantasy, and the Broader Economic Ecosystem
The financial ecosystem surrounding March Madness extends well beyond official NCAA revenue streams, including the massive gambling industry developed around the tournament.
The American Gaming Association released estimates today saying that “Americans will legally wager $3.1 billion on the men’s and women’s college basketball tournaments this year, up from $2.7 billion in 2024.”
The legalization of sports betting in many states has expanded this aspect of tournament economics, creating new revenue streams for gaming companies and state governments through taxation.
This gambling element adds another dimension to the tournament’s financial impact, though it remains separate from the official NCAA revenue model.
Today’s high-stakes matchup between Indiana and Oregon perfectly encapsulates why March Madness remains such a powerful financial force in collegiate athletics.
The game represents far more than just a basketball contest; it’s a crucial step in the pathway to the NCAA Tournament, with all the financial benefits that qualification entails.
The game carries particular significance for Indiana, which is fighting for tournament inclusion, potentially worth millions in future revenue.
As the college sports landscape continues to evolve through conference realignment, revenue-sharing models, and changing media rights agreements, games like today’s showcase both the current financial realities and the future direction of collegiate athletics.
In this high-stakes environment, where athletics departments face increasing financial pressures, the massive revenue generated by March Madness remains essential to the economic sustainability of collegiate sports programs across the country, and Indiana Vs. Oregon are but two of the 68 D1 teams that are proof of its power.
