NEW YORK (CNN/Money) -
The price tag to U.S. businesses for the National Collegiate Athletics Association basketball tournament is an estimated $1.4 billion, according to a study by a leading job placement service.
Challenger, Gray & Christmas, the Chicago-based outplacement firm, estimates that is the cost in lost productivity from employees at the nation's work places. Challenger estimates that if college-educated employees spend 10 minutes a day during the 15 work days around the tournament, that comes to about $94 million a day, or $1.4 billion in lost wages for the run of the tournament.
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| Following the NCAA tournament down to the final game costs employers about $1.4 billion in lost productivity. |
"There are zillions of conversations during work time that take place during these three weeks," said John Challenger, the firm's CEO. "The length of time of the tournament is one of the things that makes this unique among major American sporting events. But the tournament has become like the Super Bowl, something that everyone watches or talks about, even the non-sports fans. The $1.4 billion estimate may be conservative."
Challenger's estimate is significantly higher than the $504 million in lost productivity forecasted last year by Websense Inc. (WBSN: Research, Estimates), a company that helps major companies manage how employees use the Internet at work.
But Challenger said despite the steep total price tag, the cost may be well worth it for employers.
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"Especially with all the worries about the war, terrorism and the economy, companies need to find ways to build morale right now," Challenger said. "The NCAA, and the betting pools in many offices, are a way to bring employees together, to build rapport. These are the kinds of things that allow people to work well together. It's a good expenditure for companies."
Despite the nickname "March Madness" associated with the tournament, this year's contests runs from March 18 through April 7. They will be broadcast on Viacom (VIA: Research, Estimates) unit CBS, which is paying the NCAA about $360 million this year and $6 billion over the next 11 years, primarily for the rights to broadcast the tournament.
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