“This is the best thing in sports, to me. You can argue a lot of different ways between sports and coaches, but there’s nothing that brings the country together better than March Madness.” said former Iowa State and Murray State head coach Steve Prohm. Millions of fans tune in every year to watch the top teams fight for the championship. It’s also the time when people try their luck with the bracket challenge — though no one has ever gotten it perfect. But big events like this don’t just bring excitement — they also have a big effect on the country’s economy.

A recent report from the Action Network, a leading sports betting and media brand with nearly 400,000 social media followers, surveyed 3,000 full-time college basketball fans between February 20 and February 26, 2025. The study revealed that March Madness could lead to a $20 billion loss in “lost productivity” for the U.S. economy. But why is that?

The first round of the men’s tournament takes place in the afternoon on Thursdays and Fridays, distracting fans who want to watch the games. The survey revealed that 40% of participants admitted to calling in sick just to catch a March Madness game. On top of that fans spend 2.4 hours a day on miscellaneous activities related to March Madness, like checking scores, filling out brackets, and live-streaming games. Additionally, 23% of working fans spend 4 or more hours a day following the men’s hoops action.

This has a significant impact on the country’s economy, which Jim Rogers describes as being in “the worst recession of his lifetime.” With recession fears looming in 2025, exacerbated by rising inflation rates and a shaky job market, the $20 billion productivity loss from March Madness could hit harder than in previous years. According to Bureau of Labor data from Action Network, the average worker watching March Madness costs the U.S. economy about $1,801.30. With millions of workers and college basketball fans, this adds up to an estimated $20 billion in lost productivity.

While the nation stands to lose a lot of money during March Madness, the NCAA still rakes in significant revenue this month. Beyond lost productivity, March Madness fuels a massive sports betting surge that further complicates its economic footprint. The American Gaming Association estimated that Americans wagered $15.5 billion on the 2023 tournament, and with legal sports betting now available in over 38 states by 2025, that figure is likely to climb past $18 billion this year.

While this generates tax revenue—projected to exceed $1.5 billion for states hosting legal betting—it also siphons money from household budgets during a time of economic uncertainty. For every dollar bet, the Action Network survey suggests that 15% of fans dip into savings or discretionary income, potentially deepening personal financial strain amid recession fears. Here are the numbers to show why March Madness is a key driver for the nation’s economy.

How much does the NCAA make out of March Madness?

March Madness is the NCAA’s cash cow. According to Investopedia, the NCAA pulls in around $1 billion each year from media rights, merchandise licensing, ticket sales, and corporate sponsorships tied to the three-week tournament. Surprisingly, none of it went to the players–until 2021, when NIL (Name, Image, and Likeness) rights were introduced, allowing players to earn money through various sponsorship deals.

The NCAA’s March Madness revenue continues to climb, with broadcast rights alone projected to exceed $1.1 billion annually by 2025 under its $8.8 billion deal with CBS and Turner, extending through 2032. This escalation reflects growing viewership—last year’s men’s final drew 14.8 million viewers, while the women’s final topped 18.7 million—and heightened advertiser demand. Meanwhile, NIL deals have shifted the financial landscape for players. By 2025, top athletes like Duke’s Cooper Flagg or UConn’s Paige Bueckers are estimated to earn upwards of $1 million each in sponsorships during the tournament, per industry analysts. While this redistributes some wealth to players, the NCAA and its conferences still pocket the lion’s share, fueling debates over equity as the nation’s workforce bears the productivity cost.

The NCAA shares its March Madness revenues with participating athletic conferences based on the performance of their member schools. What is it’s major source of income? The broadcast rights! It brought over $945 million in 2023.

To understand the economic impact March Madness has on a state, look no further than Arizona, which hosted last year’s Final Four. According to Kamryn Brunner, the state of Arizona generated an estimate of $250-$300 million from the Final Four events alone.The state’s Sports and Tourism sector is projected to contribute $20 billion to Arizona’s GDP in 2024, accounting for 10% of the workforce. This sector is also expected to grow at an average rate of 3.5% annually over the next decade.

March Madness remains a double-edged sword in 2025. For fans, it’s a unifying spectacle; for the NCAA and host cities like San Antonio, it’s a financial jackpot. Yet, as recession fears cast a shadow, the $20 billion productivity hit—coupled with betting losses and distracted workers—threatens to bleed Americans dry at a vulnerable time. Whether this annual rite drains the nation or merely reshuffles its wealth, one thing is clear: the madness comes with a hefty price tag.