March Madness gets a makeover as NCAA introduces performance bonuses for women's tournament in the upcoming season

NCAA women’s basketball is set to experience a major boost in the right direction. The National Collegiate Athletic Association plans to reward women’s teams for their performance during March Madness, similar to the compensations received by men’s teams.

The blueprint comes after the NCAA’s new media rights deal with ESPN, an 8-year, $920 million transaction from 2024-2032 which is nearly triple the amount of its previous agreement. From the numerous women’s sports that are part of the media deal, basketball is estimated to be around $65 million per tournament, making it 10x more than the previous valuation.

“That made it possible for us to do the most important piece of this,” NCAA President Charlie Baker told the Associated Press in a recent interview. “Being able to define what a units program would look like based on the revenue generated by the tournament,” he added.

The Division I panel of Directors cast unanimous votes to introduce the performance benefits proposal which will reportedly be approved later this week by the National Collegiate Athletic Association's Board of Governors. Upon the fulfillment of the formality, the new structure will be in motion from the 2025 tournament.

How does the NCAA's payout for men's March Madness tournament work?

Nearly 300 programs are subjected to receive a unit (revenue) by entering the March Madness tournament each year. The longer a university endures the competition, the more units it receives.

Almost 90% of the Division I earnings are directed towards the 68 universities in the Basketball Performance Fund. Each unit was valued at $2 million in 2023 and the fund saw nearly $170 million last year. A team can make as many as five units upon reaching the finals. Moreover, the earnings come in the form of systematic payouts across six years.

For the upcoming change in women’s basketball, the fund will be capped at $15 million for the first year. There onwards, it will reportedly see a similar 2.9% growth to every NCAA fund each year, becoming a $25 million pool at the beginning of the 2027-28 fiscal year.