March Madness Players To Profit from the Tournament
- A law passed on July 1, 2021, allowing college athletes to receive financial compensation due to their name, image, and likeness (NIL), meaning the 2021-2022 season was the first time they could profit from their hard work.
- With March Madness generating an estimated revenue of $1B+ for the NCAA, college basketball players participating in the 2022 tournament will finally be able to receive money for their NIL.
- As college athletes can now obtain large sums of money, building strong and beneficial money habits is key to long-term wealth.
There are millions of kids around the world who dream of playing in the NBA one day. For many, it starts with the desire to play NCAA basketball, become a national champion, and improve their chances of getting drafted. Unfortunately, a couple of players, such as Jalen Green and LaMelo Ball, forfeited the college route as rules prohibited players from earning money from their name, image, and likeness (NIL). However, a bill passed in July 2021, which finally allowed college athletes to get paid for their services, and now, the NBA-bound prospects can as well.
2022 March Madness Schedule
The two most anticipated rounds after the Sweet 16 round are the Final Four showdown and the national title game. This weekend, the Final Four teams will battle each other to determine who will be playing in the national championship game two days later.
March Madness 2022 Final Four will include a game that involves one of the most heated and famous rivalries in NCAA men's college basketball history. That game will be the North Carolina Tar Heels, coached by Hubert Davis, versus the Duke Blue Devils, coached by the legendary Mike Krzyzewski. The rivalry between these two prestigious colleges will result in a surge of viewers and significantly impact the NCAA's annual revenue.
Annual Revenue Generated from the NCAA Tournament
The most recent financial statement regarding NCAA's revenue revealed they earned around $1.12 billion in 2019. Out of the $1.12 billion, around 82% came from March Madness, showcasing its vast popularity. Furthermore, as the bitter rivalry between the Tar Heels and Blue Devis will occur during the national semifinals, it is expected that more viewers than usual will tune in to watch the game.
The surge in viewers and demand for tickets will increase the amount of money the NCAA will receive from this tournament.
Controversy Surrounding the NCAA
The NCAA was notorious for not allowing its college athletes to receive financial compensation through endorsements, sponsorships, or paid promotions, causing them to enter national headlines multiple times. In addition, the prohibition of athletes receiving compensation caused many up-and-coming athletes to refrain from pursuing the college route because they wanted to make money from their NIL. This long-standing controversy between the NCAA and not allowing athletes to get paid accordingly led to new rules passed to benefit college athletes.
New Rules Pertaining to College Athletes
On July 1, 2021, a bill was passed that finally allowed college athletes to get paid for the national attention they bring to their respective sports. The new bill, passed by the Supreme Court, states that athletes can receive compensation from the NIL without getting penalized by the NCAA.
As millions watch athletes in the men's and women's NCAA sports throughout the country, it is only fair that they receive compensation. However, one key issue with this decision is that as these athletes are in their late teens and early twenties, they may struggle with their spending habits as many have not received a large sum of money before.
Why Financial Literacy is Key
Many pro athletes have amassed millions of dollars throughout their careers but have ended up broke due to poor financial habits. Many of those athletes lived a lavish lifestyle but did not focus on using their money to set themselves up for long-term wealth. Instead, they declared bankruptcy and struggled financially.
Understanding financial literacy is vital. Below are two common financial techniques that anyone, but especially college athletes who can now profit from endorsements and other deals, can practice to increase their chances for economic stability regardless of if they make it to the pros or not after college.
One of the most important things to do while working is to invest any income that is not needed. By investing, a company can pay you dividends being a shareholder, and over time, these dividends will provide a source of passive income. Furthermore, once you retire, the money put into the stocks will have accumulated over the years due to compound interest, allowing you to have a fun retirement.
Recommended Read: A Complete Step-by-Step Guide | Investing for Beginners
Have an Emergency Fund
Sometimes in life, a situation that is out of our control could have severe financial implications. Thus, one way to prepare for the unexpected is by putting money aside in an emergency fund. This account would possess three to six months’ worth of living expenses to ensure that you have a couple of months to get yourself back on track if something happens.
The Money Wrap-Up
It is great to see college athletes now have the ability to financially enjoy the fruits of their labor. Still, as they are destined for greatness, they should also think about the future and make the necessary financial decisions that will benefit them in the long term.
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What are your thoughts on college athletes being able to profit off of their NIL? Do you believe this bill will have long-term benefits or consequences? Let us know in the comments below.