March Madness may drain billions from US economy due to lost productivity

Each year, millions of basketball fans count down the days to March Madness, theNCAA tournament that turns casual viewers into die-hard analysts. But while fans strategize their brackets and stream buzzer-beaters from their desks, another competition is unfolding: the battle between workplace productivity and basketball obsession.

A new survey by The Action Network estimates that March Madness could lead to a staggering $20 billion in lost productivity across the U.S. economy. With so many employees taking extended breaks, calling in sick, or watching games on company time, employers might be feeling the madness too.

Streaming hoops or slacking off?

The timing of the tournament plays a huge role in its impact on the workplace. First-round games tip off during the workday on Thursday and Friday, making it easy for fans to sneak in some basketball between emails and meetings. According to the survey, 40% of respondents admitted to calling in sick just to catch a game.

Even those who make it to work aren’t exactly laser-focused on their tasks. The study found that the average fan spends 2.4 hours per day checking scores, updating brackets, or live-streaming games. And for 23% of employees, that number jumps to four or more hours per day-practically a part-time job in itself.

The availability of the March Madness app has made it even easier to keep up. Employees don’t need to huddle around a breakroom TV anymore-now they can discreetly stream multiple games at once from their phones or laptops.

The cost of basketball fandom

So how does this add up to a $20 billion hit? The Bureau of Labor Statistics estimates that each worker absorbed in March Madness costs the economy $1,801.30 in lost productivity. Multiply that by millions of basketball fans in the workforce, and the total becomes jaw-dropping.

This isn’t a new concern. In 2023, Challenger, Gray & Christmas, an outplacement firm, projected $17.3 billion in lost productivity due to the tournament. Other studies have estimated losses between $1.9 billion and $13.3 billion, depending on factors like remote work and employer flexibility.

The silver lining: Team spirit over spreadsheets

But is it all bad? Some experts argue that the tournament boosts morale, builds camaraderie, and actually enhances workplace culture.

“March Madness can be a great opportunity for team bonding,” says Andrew Challenger, Senior VP at Challenger, Gray & Christmas. “If companies embrace it-by setting up office pools, hosting watch parties, or allowing flexible schedules-it can make the workplace more engaging.”

Instead of trying to shut down the Madness, some businesses are leaning into it, creating designated watch areas or encouraging friendly competition through bracket challenges. The logic? Happy employees might just be more productive once the games are over.

With the 2025 tournament tipping off on March 18 and culminating in San Antonio on April 7, the question remains: Is March Madness a business nightmare, or just a different kind of workplace teamwork?