The Power Behind the NCAA Men's Basketball Tournament
Thursday, March 6, at 12 noon, U.S. Eastern time
Sooner than you'd think, the March Madness of the NCAA men's basketball tournament will be upon us. Frenzied fans will become more fanatical, brackets will be filled out, debates about teams on the bubble will break out, and the overall productivity of the American work force will decline as people spend more time talking about seedings than doing their jobs. The guiding force behind the tournament, which is the NCAA's chief revenue source, is Greg Shaheen, senior vice president for basketball and business strategies. He not only directs the tournament; he also oversees the association's $6.1-billion television contract with CBS, which is up for renewal in just a few years. He is also deeply involved in the NCAA's efforts to broaden its revenue stream, so it is not so dependent on the tournament. He will join us to answer questions about how the tournament operates, negotiations with CBS over a new contract, what other revenue he sees in the NCAA's future, and other burning issues in intercollegiate sports.
The Guest
Greg Shaheen joined the NCAA in 2000 after serving as director of operations for the local organizing committee when Indianapolis played host to the NCAA Final Four. He oversaw the development of the organization's headquarters in Indianapolis as well as the relocation of 300-plus employees from its former location, in Kansas. Mr. Shaheen, who has an undergraduate business degree from Indiana University at Bloomington, previously was chief administrative officer of Long Electric, an Indiana company. He also has served as president of the National Invitational Tournament and as a board member of the National Association of Collegiate Directors of Athletics and of the National Association of Basketball Coaches.
A transcript of the chat follows.
Brad Wolverton (Moderator):
The Chronicle would like to welcome Greg Shaheen, the NCAA's senior vice president for basketball and business strategies. Over the next few weeks, he will be one of the busiest people in college sports, as he directs the NCAA men's basketball tournament. Thanks for taking time with us today, Greg. And welcome to all participants. We will now take questions.
Question from Brad Wolverton: What plans are there to increase the NCAA men's basketball tournament's online presence and enhance the experience for fans?
Greg Shaheen: Given the continuing growth of the DI Men's Basketball Championship, we are constantly exploring ways to expand its reach so that our fans are able to stay connected, regardless of location.
Heading into the third year of the free March Madness on Demand with our broadcast partner CBS is certainly a key to this process, as we continue to grow the event. In its inception in 2006, MMOD set the record for online viewership in its first two days -- sporting or otherwise.
We are also working with AT&T to explore ways to provide statistics and other information to our fans. Highlights, key information, whether in the stands, on a plane or in the living room.
That represents the depth and breadth of the championship's following and our continuing interest in working to connect our current and prospective fans to the excitement.
Question from Andy, UW-Stevens Point: Given recent criticism of the Bowl Championship Series from some administrators, are we witnessing the beginning of a sea-change that may result in an NCAA-run football playoff in Division I? Or is it more likely the BCS will keep control of the post-season and modify it on their own?
Greg Shaheen: The Division I Board of Directors is establishing a task force of college presidents to examine this among many other issues related commercialism.
In its January discussion, the Board indicated its interest in a broad discussion of these issues, but there was no indication of putting such a sea-change in motion.
Question from : Do you think the basketball student-athletes who bring in such a large amount of money to the Association should be reimbursed or paid for their efforts?
Greg Shaheen: Student-athletes are students first and are not employees of their college or university. This is the bedrock principle of intercollegiate athletics and what differentiates the NCAA from professional leagues.
In the few sports that do generate revenue, those resources are central to facilitating other sports and championships.
Question from Brad Wolverton: In 2006 the NCAA and CBS decided to make March Madness on Demand free. How much are online viewership numbers likely to grow this year, especially with the expansion to include the regional finals and the Final Four?
Greg Shaheen: We're excited by the continuing evolution of March Madness on Demand which, as I described earlier, is reflective of our commitment (along with our broadcast partner CBS) to reach an even broader audience worldwide.
This year, the lifting of local blackouts is what we consider to be the next important piece to growing the audience.
At this moment, we're exactly two weeks from the start of the first-round games and the "up front" registrations are beyond encouraging. This technology appears to be an ideal fit for the Division I Men's Basketball Championship.
Question from Libby Sander, The Chronicle of Higher Education: Would the NCAA consider expanding the brackets from 64 to, say, 72 teams? To allow mid-major teams that did not win their conference titles but are still quite competitive and capable of upsets?
Greg Shaheen: The discussion regarding expansion is one part of a broader and continuous analysis of the NCAA Division I Men's Basketball Championship.
Since its last expansions (to 64 in 1985 and 65 in 2001), the topic has been studied and discussed by the Division I Men's Basketball Committee with constituents such as the National Association of Basketball Coaches, the Collegiate Commissioners Association, among other key stakeholders.
At this point, the basketball committee has determined to keep the field size at 65, but that doesn't preclude the topic from being revisited as part of that ongoing strategic look going forward.
A side note to your question, any expansion would also have to contemplate the "right size" of the field. 68? 72? 80? etc. There is no magic number (as there is no single answer), but examining the issue is predicated on the understanding that teams will always be "left out." Similarly, there is no single formula as to which teams would be added if expanded.
Question from Ann, ACC school: Beyond a possible football playoff, what other types of new revenue streams do you see in the NCAA's future?
Greg Shaheen: In assessing where the Association is and where it needs to go, we're actually focusing on diversifying our revenue streams through a number of programs.
At the same time, a key focus is on broadening the awareness and exposure of our championships, where the stories of our student-athletes and their commitment in the classroom as well as in competition are best showcased. We believe that these are remarkable, important and valuable stories to tell -- in part to inspire young people to understand the opportunity and benefit higher education can bring through participation in intercollegiate athletics.
Diversification obviously also takes into account our ongoing work in making our expansive video library available to the public (www.ncaaondemand.com), our legendary photo collection (www.ncaaphotos.com), as well as our ticket and hospitality programs to provide fans a sanctioned means to access our events.
On a daily basis, the broad subject of revenue diversification continues in every discussion. It is a key area of focus to provide long-term stability to the Association and its mission -- which directly benefits our membership and through them, student-athletes.
Question from Kate: What is the most difficult aspect of managing the tournament?
Greg Shaheen: Tough but good question. Recognizing that we've got 150 million people watching, nearly one million people attending the games and thousands of student-athletes and the general student body in the "Madness", we have to accept that there are a number of moving pieces.
Things happen. Bad weather affects travel, a sideline cooler isn't refreshed, a traffic accident can keep a team from arriving at the venue on time or, as in 2003, a war can break out as we're tipping the games off.
We're conditioned to accept and expect what we cannot foresee and to respond accordingly. Given that we've got a number of sites active at any one point in time and millions of fans relying on everything moving like clockwork, we focus on being ready to handle whatever comes, and to do so with the safety and enjoyment of our student-athletes and those who follow the games as our priority.
Question from Anonymous: How might the NCAA's continued membership growth affect the distribution of revenue, particularly for Divisions II and III (or a possible Division IV)?
Greg Shaheen: Membership growth is a topic of discussion throughout our Association and in every division. As you know, revenue generation and therefore distribution (of which the NCAA passes along 94% of its revenue to its membership) are designated to benefit our 380,000 student-athletes.
Our Division III members, for example, are examining possible changes in structure such as subdividing or as you mentioned creating a new division. As the division experiencing the most growth, Division III is examining issues of access to championships and revenue distribution as part of this conversation.
Division II, meanwhile, is also examining these issues and, in fact, has approved a pilot program that would allow Canadian institutions to join the NCAA. They have determined this could be beneficial for west coast institutions in terms of geographic competition.
Division I is similarly examining many of these same issues.
Collectively, the impact to distribution of revenue is a topic of important discussion, but will be clarified upon conclusion of these various studies and conversations.
Question from Brad Wolverton: Are Internet viewers worth as much commercially as TV viewers? And if not, how much concern is there that some of the Internet viewership eats into the TV audience?
Greg Shaheen: At this point in time, television viewership of live NCAA Championships is most valuable, and we believe this will remain the case going forward.
In activating March Madness on Demand, we've worked with CBS to closely monitor impact on viewership and have actually found it to complement -- not compete with -- our television broadcasts. The numbers are compelling and again, we believe this model suits the Division I Men's Basketball Championship quite well.
Question from Libby Sander, The Chronicle of Higher Education: Where are you in broadcast negotiations for the renewal of the CBS contract?
Greg Shaheen: Among the benefits of an 11-year partnership with CBS is that negotiations aren't a continuous use of our time. Therefore, we aren't in negotiations at this time.
Our working relationship with CBS as well as with ESPN affords us the opportunity to showcase more championship content (88 championships and more than 500 individual programs this year alone) and student-athlete stories with every passing year.
We're eager to further explore the right kind of growth for our media assets, and as described in some of the earlier response, are positioned to do just that going forward.
Question from Chery, Boston: what growth potential does the NCAA see for women's basketball and will that championship become a revenue generated in the future?
Greg Shaheen: Women's basketball is most certainly on the uptick as we plan for the future.
In the coming days and weeks, we will be awarding a series of substantial grants to our membership designed to focus toward continuing growth in the sport.
The Women's Final Four, which has been sold out annually for years is perhaps the best showcase of spirited, engaged fans that intercollegiate athletics can offer.
Our focus now is on growing the game, at the grass roots level, so that regular season and early-round championship play benefits from a following the grows over time, and stays with programs as they evolve.
The women's game is most certainly a pure form of the game, and the opportunity to showcase great role models for young people is something on which we intend to focus.
Sue Donohoe, our Vice-President of Division I Women's Basketball is a legend in the game -- former student-athlete, coach, administrator and now leader who we're convinced will further lead the sport to new heights. The progress under her time here in just a few short years proves that.
Question from Jonathan,: What evaluation results has the NCAA determined in reviewing the potential of establishing its own television network, similar to the Big 10 Network?
Greg Shaheen: The landscape of media outlets and distribution methods seems to grow by the day.
Whether it is the Mountain West's mtn. network, the Big Ten Network, the unique and expansive partnership the Big East has with ESPN -- there is no single model and therefore, no certain route to take.
A network approach is one of literally dozens of models we study on an ongoing basis and the opportunity to observe and learn along with our membership continues to be important.
Without question, the stories of intercollegiate athletics interest a wide portion of our population -- making sure to effectively reach each of them is our central goal -- which ultimately drive such a decision.
Brad Wolverton (Moderator):
We've had a flurry of questions here at the end, so stay with us as Greg wraps up with a few more responses.
Question from Christopher J. Shinkman: If a Coach has the right to leave an institution at any time and begin coaching elsewhere immediately why shouldn't a student-athlete have the right to leave and begin playing elsewhere immediately?
Greg Shaheen: Coaches are employees of a college or university, just like professors and administrators. From time to time, opportunities may arise which can lead to making the tough decision to leave one institution for another, again whether it is a faculty member or administrator or someone working in the athletics department.
Student-athletes, conversely, are not employees and when they commit to an institution, they are doing just that. Their commitment transcends playing for a coach -- it reflects a commitment to the institution -- both academically and athletically.
Of course, student-athletes can transfer, and some can play immediately depending upon the circumstances.
Question from Bill, Hobart: how do you see the potential growth in other sports, like hockey, soccer and lacrosse, affecting the NCAA in the future?
Greg Shaheen: Attendance and viewership of these sports continues to rise and the opportunities to showcase these championships will benefit the student-athletes into the future.
For a sport like lacrosse, the opportunity to grow its following nationally after building such a strong eastern base will be among the key opportunities we have going forward. Conducting championships across three divisions in one location and having them broadcast nationally over a holiday weekend demonstrates the growing popularity of these sports.
Question from Mary Z.: Do you see the NCAA tournament as a business model for any other sports, or is it unique?
Greg Shaheen: The NCAA tournament is unique simply because of its existing broad reach.
From it, we work to learn about concepts and business approaches that can be applied - in one form or another - to other sports. As such, the need to continue to focus on innovation and growth of the Division I Men's Basketball Championship is key to uncovering various methods and means to aid the growth of other sports in our portfolio.
Brad Wolverton (Moderator):
Greg is answering one or two more questions for us beyond the hour, so hang tight, folks.
Greg Shaheen:
Thank you for the opportunity to join in the discussion. We look forward to pure March Madness getting underway in a few short days. We'll see you on the roads to Tampa, San Antonio and all of the NCAA's winter championships in the weeks to come. Enjoy the rest of your day.
Brad Wolverton (Moderator):
Thanks to Greg, and everyone else for participating and tuning in!
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