The NCAA will reduce its payouts to Division I conferences by $375 million, to about $225 million, in wake of the mass cancellations brought on by the COVID-19 pandemic, USA Today reported Thursday.
The approximately 63% cut is largely a result of the cancellation of the Division I men’s basketball tournament, which brings in “most” of the NCAA’s $1.1 billion annual revenue, according to USA Today. The NCAA was previously planning to distribute $599,622,705 to conferences and schools between April 15 through June 10; now, the entire payout will likely come in early June, NCAA chief financial officer Kathleen McNeely told USA Today.
Of the $225 million now allotted, $53.6 million will be distributed (as originally planned) to the Equal Conference Fund, which is split equally among all Division I basketball-playing conferences eligible for the NCAA tournament. The rest will be distributed among the association’s nine other funds, which contain a varying amount of money and are allocated to each conference in varying ways.
$50 million of the $225 million given out will come from NCAA reserves, according to USA Today. Additionally, the NCAA $270 million event-cancellation insurance policy for the basketball tournament which will be used to pay off the rest.
The cuts won’t affect schools across the country uniformly. Indiana, for example, told The Athletic that it will defer any “non-essential building and maintenance projects and purchases,” and that the athletics department is “now under a university-wide hiring, promotion and bonus freeze.”
Additionally, in response to the cuts, Big 12 conference commissioner Bob Bowlsby said that it’s hard to plan ahead without knowing the fate of the 2020 football season.
I guess this means No Christmas Training Trips to Cancun of Hawaii paid for by the Athletic Department.
I’m curious how this will play out for swimming’s national championships next year (at all 3 divisions). Very high likelihood that schools will have to 100% foot the bill out of their own operating budgets in 2021.
This is definitely one of the nails in college swim’s coffin
Here’s a bit of related news: the US government (Department of Justice) weighs in on favoring limiting girls sports teams to biological girls in high school athletic competition.
https://www.justice.gov/opa/press-release/file/1262901/download
It is truly time to let athletes profit off their likenesses.
NCAA is a scam… “non profit” where does the money go then. Modern day slavery
…That you take advantage of. Your swimming brings in $0. Yet the NCAA provides the whole framework and championship experience your are privileged to partake in.
If you want to bite the hand that feeds, take a stand and don’t participate in the NCAA system. Let me know how you like paying those club dues, meet fees, and travel costs to Sectionals.
Bite the hand that feeds? Feeds with what? They don’t pay for your tuition, they don’t pay for your meals all that comes from the schools. “Go back to club” is childish. Your probably just some boomer who never experienced what it is like to get pimped out as a student athlete
Not a boomer. Just someone that realizes that even though the NCAA is flawed, it’s provided some excellent opportunities for millions of student-athletes over the years. While it’s not perfect and we can all work to help improve it, it’s the best model in the world. That’s why people flock here from around the world.
What do you feel you are owed by the NCAA? Given your name, I assume your are a D2 swimmer. If you went to NCAAs, that experience for you, your team, and everyone else, was paid for by the DI NCAA Basketball tournament.
So, in this equation, you are benefitting from the labor of others…not the other way around. Your swimming has $0 value… Read more »
Ok boomer
D2 American just lost the argument, as noted by the weak ok boomer reply.
There’s no crying on SwimSwam.
Sorry, a D2 swimmer trying to paint the same narrative as football players about “getting pimped out”?
I don’t know how to tell you this…but…nobody is making money off your swimming, friend.
Well I mean, they did pay for that championship event that allows you to put “All-American” on your resume
I don’t know if you know this, but modern day slavery actually exists in this world, and it doesn’t look anything like “3 meals a day plus snacks, advanced education, daily naps, $50 million natatoriums, someone to help you with your classes, and an entire staff dedicated to taking care of your physical and emotional needs.”
The NCAA definitely has problems. Football coaches making $12 million/year while athletes are just getting a scholarship is a problematic imbalance.
But, I think it would be wise to choose your metaphors more carefully if you want someone to take you seriously.
Also, saying “ok boomer” isn’t going to solve this problem, sorry friend. If you want a fix, you’re going to have to… Read more »
Here’s to full dorms, full classrooms and full football stadiums come fall!
This will accelerate the death of college sports programs which began with Power 5 autonomy. Almost all colleges count on that NCAA money to balance their budget each year. Power 5 schools get about $5M each year. Mid-majors, much smaller, but probably even more crucial. The bigger issue will be this Fall when overall college enrollments are down, especially if we don’t start up school in the Fall. It could also increase the number of incoming students who take gap years. Right now, schools are going to online teaching as a way to avoid refunding tuition costs. But they all have to refund Room for sure and Board if they can’t cancel contracts. Refunding that dorm rent is a huge… Read more »