The allure of March Madness guarantees the NCAA will receive at least $3.8 billion from its CBS deal over the next five years. But the organization isn't about to leave any spare change on the men's basketball tournament court.
While maintaining a firm stance against unregulated scalping, the NCAA has struck deals with online ticket resellers in a bid to share in the wealth being created as Final Four tickets change hands in the secondary market.
Fans now can connect with resellers on an NCAA-approved website and book upscale NCAA travel packages that include Final Four tickets, hotel rooms and admission to exclusive parties. The more adventurous can even participate in a Wall Street-style market that deals in options for hard-to-get tickets.
The NCAA, which closed its last fiscal year with $327 million in net assets, has not disclosed the value of these deals. But its increasingly sophisticated ticketing machinery has sparked concern among some observers that the leading nonprofit governing body of college sports has, in effect, turned pro.
"When you go to these [online ticketing] websites, you see the professional sports listed right next to college sports," said Ellen Staurowsky, a professor who teaches sports management classes at Ithaca College in New York. "The NCAA says it adheres strongly to its amateur ideal, but it seems to be operating precisely, exactly the same way that the major professional sports enterprises are."
NCAA officials say the push into the ticket resale market makes financial sense for student athletes and fans.
"It's the nature of the association, in that we are, in essence, a pass-through to our membership," said Greg Shaheen, the NCAA's senior vice president for basketball and business strategies. About 94% of the NCAA's overall revenue flows through to member institutions and their 380,000 student athletes, Shaheen added.
The NCAA also hopes to give fans who otherwise would risk being taken by shady operators "the confidence of knowing that the tickets are legitimate and any revenue derived from the programs will directly benefit NCAA member institutions," Shaheen said.
One sign that the NCAA is serious about controlling unauthorized ticket resales is its decision to cut the annual allotment to the National Assn. of Basketball Coaches. The group has told members it received 100 fewer Final Four ticket strips than it did a few years ago because of NCAA sanctions against coaches whose tickets ended up in scalpers' hands. (Each strip consists of a ticket to both semifinals and the championship game.)
