Article Journal of Sports Economics 1-25 ª The Author(s) 2020 The “Cinderella Effect”: Article reuse guidelines: sagepub.com/journals-permissions The Value of Unexpected DOI: 10.1177/1527002520944437 journals.sagepub.com/home/jse March Madness Runs as Advertising for the Schools Trevor Collier1, Nancy Haskell1, Kurt W. Rotthoff2 , and Alaina Baker1 Abstract This study looks at the impact of a university making a surprise (“Cinderella”) run in the men’s NCAA basketball tournament. Our results suggest that surprise success in the tournament has little to no impact on the quantity of applications in subse- quent years. However, we find that freshmen enrollments increase for private schools two academic years after a Cinderella run (with mixed results on the quality of freshmen—although not worse). Given an average private school, with 1,253 freshmen and paid tuition of $24,428 (each year) plus room and board, a Cinderella run is worth approximately $7.3 million in 2012-dollars. Keywords university advertising, NCAA basketball, Cinderella runs, academic outcomes Introduction Media pundits, university administrators, and fans of collegiate athletics often debate whether collegiate athletics support the academic missions of colleges and 1 University of Dayton, OH, USA 2 Seton Hall University, South Orange, NJ, USA Corresponding Author: Kurt W. Rotthoff, Seton Hall University, 400 South Orange Ave, JH 674, South Orange, NJ, USA. Emails:
[email protected];
[email protected] 2 Journal of Sports Economics XX(X) universities. There are numerous academic studies linking athletics, both positively and negatively, with a school’s academic mission. This study expands the research by looking at the impact of a surprise “Cinderella” run in the NCAA Men’s Division 1 Basketball Tournament.