March Madness may cost employers more than $12 billion in lost productivity, according to new report
FILE - The NCAA March Madness logo on a basketball rack prior to the game between the UCLA Bruins and the Cal Poly Mustangs at UCLA Pauley Pavilion on Dec. 16, 2024 in Los Angeles, California. (Photo by Katelyn Mulcahy/Getty Images)
March Madness could cost employers more than $12 billion in lost productivity, according to new data from employment firm Challenger, Gray and Christmas.
March Madness allows employees to find camaraderie in the workplace via office pools, watch parties, and department bracket challenges, according to Andrew Challenger, workplace and labor expert and chief revenue officer at Challenger, Gray and Christmas.
What they're saying:
"As employers attempt to navigate increased uncertainty, and especially if layoffs or other deep cost-cutting measures have occurred, March Madness is a wonderful vehicle to lighten the mood and reengage potentially burnt-out workers," Challenger added
The stats
An estimated 40.3 million working Americans are predicted to be caught up in March Madness this year.
By the numbers:
About 26% of workers will call off work to watch the games or spend an estimated 6.4 hours spending time on March Madness-related activities.
The other side:
Challenger, Gray and Christmas noted that it is difficult to gauge exactly how much productivity is lost due to March Madness, but like any big sporting event, millions of Americans plan to at least keep up with the games.
"Workers love March Madness, and though it may cost employers in productivity, they should embrace this opportunity for real human connection," said Challenger.
More fans tune into March Madness
The NCAA Tournament drew in more fans than in the year before.
Data from Nielsen found that the tournament averaged 9.8 million watchers for the first three days of the tournament, which is a 5% increase from 2025.
The primetime games — which included VCU’s 82-78 win over North Carolina — averaged 12.5 million, making it the most-watched first-round window in NCAA Tournament history.
The Source: Information for this article was taken from a Challenger, Gray and Christmas survey comparing 2026 preliminary data from the Bureau of Labor Statistics, as well as data from February 2025. 2023 survey data from the American Gaming Association was also included. Previous reporting by The Associated Press contributed to this report. This story was reported from San Jose.