K-State business professor says NCAA tournament office pools are more than just productivity busters

Media Relations and Marketing
9 Anderson Hall
Manhattan, KS 66506-0117
Phone: 785-532-6415
Fax: 785-532-6418

Information provided by K-State Media Relations, K-State's news service, may be reproduced without permission. The marks and names of Kansas State University are protected trademarks and may not be used in any commercial or private endeavor without the approval of the university.

Source: Diane Swanson, 785-532-4352; e-mail: swanson@k-state.edu.
http://www.mediarelations.k-state.edu/WEB/News/MediaGuide/dswansonbio.html
News release prepared by: Keener A. Tippin II, 785-532-6415

Tuesday, March 1, 2005

K-STATE BUSINESS PROFESSOR SAYS NCAA TOURNAMENT OFFICE POOLS ARE MORE THAN JUST PRODUCTIVITY BUSTERS; ALL-AMERICAN ILLEGAL FUN

MANHATTAN -- The Kansas State University women's basketball team is almost a shoe-in to get an invitation to the Big Dance. So is the University of Kansas men's team.

It's March Madness time, better known as the men's and women's NCAA Tournament. And just as sure as an over-excited Dick Vitale will be on the television screaming "It's awesome, baaaaa-by!" millions of employees across the country will be filling out bracket sheets to predict who will be crowned the national champion. Will Connecticut repeat as champs on both the men's and women's tournaments or will a Cinderella be crowned king -- or queen -- of college hoops?

During March Madness, many people become caught up in the excitement of college basketball. Unfortunately for most businesses, a lot of the games take place during the workday. As such, this annual hoops hysteria kicks off workplace betting, which some say saps worker productivity. Workers will spend countless hours filling out tournament brackets, monitoring scores on the Web and talking trash across cubicles.

Overall estimates vary, but studies speculate U.S. businesses will lose anywhere from $400 million to $1.5 billion in productivity diverted to gambling pools during the 15-day NCAA Tournament.

Although these pools are technically illegal, try finding an office without one. But in spite of the productivity that is lost, a Kansas State University associate professor of management who has spearheaded a campaign to emphasize the importance of ethics in business education, sees nothing inherently wrong with participation in these pools by employees at work -- if done in moderation.

Legal issues aside, Diane Swanson said participation in such office pools can in fact act as a counterweight to the cost and productivity issue, which some place at about $101 million lost by businesses for every 10 minutes its employees spend obsessing about the tournament. These pools can instead increase employee morale and output.

"Such activities at work do create a bond among employees and increase their interest in being at work and foster a climate of solidarity," Swanson said. "Instead of people sitting solemnly around and not connecting, these kinds of things can help to connect people and create bonds around a focal point of interest. This is desirable in a climate where employees by the thousands have lost jobs due to outsourcing and whopping misconduct at the top of organizations."

According to Swanson, if the office pools are done with the knowledge of the employer and are run with fairness and no corruption, she doesn't see it as a problem -- as long as conflicts of interest such as coaches and players betting on the games are prohibited.

"I think one key to balance out the concern, is whether the employer is comfortable with this practice," Swanson said. "If the employer has knowledge of it and doesn't view it as disruptive, I do not see them as unethical per se, although ultimately I have to respect the letter of the law in this area."

A word of caution is issued when participating in such pools: Check with your employer first to see if any rules exist against participating in such pools. Employees who organize office pools where money changes hands could face punishment, dismissal or even legal trouble for engaging in an illegal act. This sort of wagering is against the law in every state except Nevada.

Rick Neuheisel, the former University of Washington football coach, was fired after he wagered on an NCAA tournament outcome. Neuheisel, who bet $6,400 and won $18,523 in auction-style pools on NCAA basketball tournaments in 2002-03, is currently suing to collect lost wages from the university.

"If the employer has a policy against the practice, then I cannot say it's ethical to have it," Swanson said. Swanson holds the von Waaden business administration professorship at K-State.