LAS VEGAS — The organizers of the Players Era Festival are taking a significant risk, betting on the potential success of an ambitious college basketball tournament. This event, launching Tuesday, guarantees at least $1 million in name, image, and likeness (NIL) earnings for each of the eight participating teams. The hope is that this lucrative initial boost will set a precedent for future competitions in the collegiate sports landscape.

EverWonder Studios CEO Ian Orefice, who co-founded the Players Era Festival alongside former AND1 CEO Seth Berger, draws parallels between this tournament and last year’s NBA In-Season Tournament, which revitalized interest in the sport at the start of the season. Orefice expressed excitement about transforming college basketball economics, emphasizing their focus on sustainable growth rather than short-term goals. “How do we harness the momentum from this year’s festival to be a long-lasting change for college basketball?” he questioned.

The organizers have not disclosed specific financial figures but mentioned the event is on track to break even, with projected revenue expected to reach eight figures. Key partnerships with MGM, TNT Sports, and Publicis Sport & Entertainment, along with upcoming sponsorship deals, are anticipated to drive the majority of income.

Both Orefice and Berger are optimistic about the tournament’s future, indicating that the profits generated will be reinvested back into the company. “We’re committed for the long term and not focusing solely on this year,” Orefice stated.

Despite the enthusiasm, Rick Giles, president of the Gazelle Group, expressed caution regarding the financial feasibility of the tournament. He highlighted that over $8 million of guaranteed payments to players, along with operational costs, may not be adequately offset by expected revenues from ticket sales and sponsorships. Moreover, the upper section of the MGM Grand Garden Arena will remain closed during the tournament to mitigate costs.