The National Collegiate Athletic Association: Non-Profit Analysis

The National Collegiate Athletic Association, more commonly known as the NCAA is a non-profit organization that organizes and executes college sports, including football, basketball, as well as 21 other sports, with 3 different divisions throughout the United States. Because this organization is label as a “non-profit” it is unusual for it to make nearly billions of dollars in revenue each year. However, according to USA Today, “the NCAA generated $989 million dollars in revenue in 2014”. The NCAA players should get acknowledged for the companies’s wealth because of their outstanding effort and hard work they bring their teams and the top. As the team becomes more popular and known bigger audience watch the sports. Fans like to watch winning

College students attend the games to support their team and viewers get tuned in from their couches. However, the main benefit comes from these tournaments is the revenue. Tournaments involve advertisements that brings money. In addition, it also gives companies opportunities to buy sponsorship, a kind of investment for the companies so that they get more customers, which earn more money for the NCAA. Sponsorship come in two different packages, which vary in terms of how much they cost and the amount of viewing each of them receive. For example, during the March Madness, “Corporate” and “Champion” sponsorship sell for large amounts. (March Madness: Follow the money, 2015). People are usually surprised by the amount of money earn just through advertisements while the tournaments are going on. In 2013 the NCAA men’s basketball tournament the NCAA made $1.15 billion in ad revenue (The Blue Line: College Athletes Should be Paid, 2015). All this revenue and all this only came from advertisements. This is excluding the revenue from merchandise and food sold along with other means of

The NCAA organizes games, however, in order to get them live they need to be aired. Some may say, the NCAA has to pay for their games to be aired, but this is not true, companies want the NCAA to use them to air the games. The NCAA made revenue of $871.6 million dollars in the 2011-12 year, mostly of which came from the rights agreement with CBS (Revenue, 2015). Video games are growing in popularity in America by the day. Kids are begging for the latest games that come out, which we all know are not cheap. A new game for any “T.V based” video game costs about $60 each. The NCAA creates multiple types of games from basketball to football, and a variety of other sports. Each of these games cost approximately $60 each and the NCAA creates games with no age restrictions, making it possible for everybody of all ages to buy their games this guarantees that the NCAA will surely sell a lot of their products. The NCAA receives a large amount of money from video games they produce. (Athletes’ Case May Rewrite Money Rules For NCAA. (2010, March