For the first time in NCAA Tournament history, women’s basketball teams will receive an individual share of March Madness revenue.
These teams will be entitled to financial rewards, referred to as “units,” for their participation in the tournament. This development addresses one of the final elements of equity that has been lacking between the men’s and women’s tournaments. Previously, schools received no monetary compensation beyond having their tournament expenses covered by the NCAA.
The financial framework can be complex, but essentially, conferences will receive $113,000 for each game played by a women’s team in the NCAA Tournament. The distribution of these funds among schools is at the discretion of each conference.
The previous season’s women’s tournament set new records, including an audience of 18.7 million viewers during the championship match in which South Carolina triumphed over Iowa and Caitlin Clark. However, neither team benefited financially from the NCAA’s rewards last year.
That is about to change.
Understanding March Madness Units
In NCAA parlance, “units” represent the tally of wins, automatic bids, and at-large selections that determine the compensation for conferences.
A unit is a monetary award allocated to conferences when their teams compete in the NCAA Tournament.
The new financial incentive program for women’s March Madness closely mirrors the men’s basketball unit framework. South Carolina’s coach, Dawn Staley, has been a prominent advocate for equal financial benefits for women’s teams.
All 32 conferences that secure an automatic bid to the tournament now earn a unit, with additional units awarded for teams qualifying via at-large bids.
This year, teams will receive an extra unit for each game they compete in during the tournament up to the championship match.
Do Players Benefit from Unit Shares?
As it stands, the revenue generated from units is allocated solely to the institutions. However, this could evolve as NIL rights and revenue-sharing arrangements with student-athletes develop further.
Source of Unit Share Funding
The funds for unit shares are disbursed by the NCAA to conferences, derived mainly from revenue generated through television contracts.
The NCAA recently entered a new media rights agreement with ESPN, valuing the women’s basketball tournament at $65 million a year. In the initial year, $15 million will be distributed to teams, accounting for 26% of the women’s basketball media revenue deal. This amount is projected to increase to $25 million, or 41% of the total revenue, by 2028. The 26% allocation matches what the men’s teams received when the performance units program was first introduced.
Once the funding reaches the full amount of $25 million, it will increase in line with all other Division I funds, which sees an approximate annual growth of 2.9%. Women’s basketball benefits from a greater share of the media revenue deal, enhancing the value of each performance unit.
Do Schools Receive Full Unit Amounts?
Conferences collect the unit funds and distribute them among their member institutions.
Starting in 2026, the units earned from participating teams will be directed to the respective conference offices on a rolling three-year basis. With each unit this year valued at just over $113,000 and totaling $251,000 for a three-year period, the Big Ten, boasting a record 12 teams in the tournament, has already secured $3 million for its conference, even if none of them win a match.
If an individual team reaches the Final Four this season, it could yield over $1.25 million for its conference. The distribution of these funds to member schools is determined by each conference.
In contrast, a men’s unit for the 2024 tournament is projected to be worth $2 million for a six-year rolling span, supported by an $8.8 billion deal over eight years.
How to Earn March Madness Units
Units are derived from two primary funding sources. The Equal Conference Fund ensures that each of the 32 Division I conferences receiving an automatic bid earns one unit. Meanwhile, the Performance Fund grants units for teams qualifying via at-large selections.
A total of 68 women’s teams participate in the tournament, each earning one unit simply for entry.
Additionally, units are awarded from the Performance Fund for teams that make it beyond the initial round, with one unit awarded for each victory until reaching the Final Four. Note that wins in the semifinal or final rounds do not contribute to unit totals.
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