Peter J. Schwartz, Forbes.com
Submitted by: Bob Rafelson
The Net Worth of College Basketball Teams
[Forbes] The NCAA tournament is big business that rewards teams for appearances. Successful teams benefit from multimillion dollar "gifts" that raises an athletic department's profile, making it easier to recruit players, build new venues and sell more tickets and sponsorships in subsequent seasons.
[Excerpt] Athletic conferences receive annual payments from the NCAA's central basketball fund of more than $140 million based on the number of games their teams participate in during the NCAA tournament over a six-year rolling period. These payments, which are composed primarily by TV revenue, directly reward success on the court.
[Excerpt] Captured among revenues are ticket and concession sales, basketball broadcasting and sponsorship agreements, scheduling guarantees and money generated from hosting pre-season tournaments. Also included are donations that are required by some athletic departments in order to purchase season tickets. These "gifts" are significant--in some cases they add up to more than $7 million a year--and are often hidden within departmental accounting.