It promotes their stated mission regarding amateur athletics to anyone that might care— particularly people watching a college basketball game. Their campaigns these days seem to focus on non-revenue sports, minority involvement, and highlighting academic achievement. They’re given that ad time as a part of the broadcast agreement so it doesn’t necessarily need to be a profitable venture the way a business would expect.
They want you to like them. The NCAA is facing a lot of pressure from fans, regulators, and politicians to change their practices and let student athletes be paid directly by their universities. There’s a current lawsuit that isn’t directly about that (it’s about transfer portal rules), but it reflects the NCAA’s vulnerability to bad public opinion. If more people thought the NCAA is a useful institution and that amateurism in college sports is a good idea, a lot of that pressure to change would be relieved.
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