The Afternoon Story

March Madness Isn't so 'Nonprofit'

The NCAA’s athletic departments, long classified as 501(c)(3) tax‑exempt nonprofits, are facing renewed scrutiny as college sports generate billions in revenue. CBS and Turner now pay roughly $1.1 billion annually for March Madness rights, while high‑profile NIL deals—such as a reported $7‑$9 million offer to Michigan forward Yaxel Lendeborg—show athletes can command professional‑level money. Recent Supreme Court rulings, settlements, and policy shifts have opened pathways for athletes to share a slice of that revenue, challenging the traditional amateur model. Lawmakers and scholars are urging Congress to reconsider the nonprofit designation, warning that its loss could reshape funding, donor behavior, and tax obligations for universities.