Friday, April 4, 2008

Mad Money

I am definitely one of those sports illiterates. So, I never attempt to write intelligently about March Madness. I do know, however, that much of the frenzy has little to do with basketball. Punxsutawney Phil can’t predict the coming of spring as accurately as the NCAA. And we all know how spring turns a young-old-man-woman-bird’s fancy. So while most sports outsiders think of all this as complete madness, I say BRING IT ON! Because not only does it mean the end of the winter, it is one of the best economic stimulus packages.

photo by KellyK

March Madness is good for business—some might say that office pools are a distraction, but anything that generates excitement, friendly competition and comradery is good for the company. And if you win the pool, well, it can be a nice cushion in your pocket—but you better buy a round for the losers.

March Madness boost sales—televisions, food and alcohol sales all increase during games. The local sports bars are happy too.

Advertising revenue rises—ad rates still run a close second to Superbowl prices, but March Madness gives advertisers more opportunities. Network advertising revenue starts rolling in during pre-season and continues after the tournament. Year 2000 saw $310 million in sales revenue for television with $497 million in 2006.

Big money for colleges—all this hype naturally turns into great advertising and increased applications for the featured schools. No matter if they win or lose just getting to the tournament boosts the college’s piggy bank. It helps with fundraising, event ticket sales and alumni contributions.

So who’s your pick for the final four? I’ve got a soft spot for Duke. They’re still in aren’t they? Told you I was sports illiterate.

No comments:

Post a Comment