NCAA Women’s Basketball Tournament Pay Structure: Analyzing Compensation Models and Equity
Overview
The NCAA women’s basketball tournament has seen significant changes and growth. This year, the NCAA announced the creation of a $15 million fund, equivalent to 26 percent of the women’s basketball media revenue deal. By 2028, this fund will increase to $25 million, representing 41 percent of the revenue.
This figure aligns with the percentage that men’s basketball teams received when the performance units program was first established.
One notable aspect of the women’s tournament is the introduction of a units system, which mirrors the men’s basketball unit program. In this system, 32 conferences with automatic bids to the tournament each receive a unit. Additional units are awarded to teams that gain at-large bids.
As a school’s tournament journey progresses, its conference earns more units. These units then translate to financial performance rewards for the conferences, which determine how to distribute these funds to their member schools.
For context, each unit in the men’s tournament was valued at around $2 million in 2023.
Men’s basketball teams now receive 24 percent of the NCAA media rights deal, which totals $8.8 billion over the next eight years. In contrast, women’s basketball, under the new deal with ESPN, commands $65 million per tournament, a tenfold increase from the previous contract. To enhance the value of performance units, women’s basketball has secured a higher percentage of media revenue.
Revenue sharing from March Madness has been a standard practice for the men’s tournaments. For instance, the 2018 men’s tournament brought in $844.3 million through television and marketing rights, mainly from a contract with CBS and Turner Sports.
The funds are channeled through the NCAA to the conferences and then back to the member schools. Over 300 Division I basketball teams benefit from these revenues, which are predominantly reinvested in athletics — from scholarships to coaching salaries, to training facilities, stadiums, and arenas.
The women’s tournament experienced its most successful year to date, with a record audience of 18.7 million tuning in for the title game between South Carolina and Iowa. This event marked the highest viewership for a basketball broadcast in five years, surpassing the men’s championship game between UConn and Purdue by nearly 3 million viewers. Additionally, the women’s tournament recorded impressive attendance figures.
The growth and changes in the women’s basketball tournament reflect a broader movement towards gender equity within NCAA sports.
Striving for parity, the new women’s March Madness proposal aims to provide the same financial incentives and recognition that have long been a staple in men’s basketball. These changes have been a step towards leveling the playing field for women athletes, enhancing their visibility, and acknowledging their contributions to the sport.
Tables, like the one below, often assist in understanding the financial distribution:
| Year | Women’s Fund Amount | Percentage of Media Deal |
|---|---|---|
| 2024 | $15 million | 26% |
| 2028 | $25 million | 41% |
The women’s basketball teams are on a path to achieving greater financial support and recognition, thanks to these strategic and incremental changes.