https://www.usatoday.com/story/sports/nc...916805001/

The cut is necessary due to the cancellation of the NCAA Tournament.

Quote:The NCAA will reduce its direct distribution to Division I conferences and schools for 2020 by about $375 million to $225 million, the association announced Thursday.

According to its 2020 Division I Revenue Distribution Plan document, the NCAA had been scheduled to distribute just under $600 million directly to conferences and schools from April 15 through June 10.

That would have represented a 1.7% increase over the amount budgeted for 2019, but the actual distribution for 2019 ended up being $611 million, according to the association’s recently released audited financial statement. (When the association runs an annual operating surplus, it often makes a supplementary distribution to Division I conferences and schools.)

The association said of the $225 million distribution, $50 million will come from NCAA reserves. The NCAA also has a $270 million event cancellation insurance policy, and the proceeds when received will be used to pay off a line of credit that will cover the remaining distribution within 12 months.

So, is the is the same as the credits for the NCAA basketball tournament?

(03-26-2020 03:27 PM)leofrog Wrote:  So, is the is the same as the credits for the NCAA basketball tournament?

No. That fund is one of several distributions made by the NCAA, although the TV contract for the NCAA Tournament is by far the largest source of its funding. The Basketball Fund was budgeted to be around $220 million. Other major distributions are based on the number of scholarships offered, the number of sports sponsored, and academic performance.

(03-26-2020 03:46 PM)orangefan Wrote:  

(03-26-2020 03:27 PM)leofrog Wrote:  So, is the is the same as the credits for the NCAA basketball tournament?

No. That fund is one of several distributions made by the NCAA, although the TV contract for the NCAA Tournament is by far the largest source of its funding. The Basketball Fund was budgeted to be around $220 million. Other major distributions are based on the number of scholarships offered, the number of sports sponsored, and academic performance.

Thanks

The NCAA has a policy that pays them $270 million for the cancellation of an event that cost them $1 billion in revenue, so they get back about a quarter of what they lost?

Sounds like the fire insurance policies that insurance companies sell to homeowners.

(03-26-2020 03:22 PM)orangefan Wrote:  https://www.usatoday.com/story/sports/nc...916805001/

The cut is necessary due to the cancellation of the NCAA Tournament.

Quote:The NCAA will reduce its direct distribution to Division I conferences and schools for 2020 by about $375 million to $225 million, the association announced Thursday.

According to its 2020 Division I Revenue Distribution Plan document, the NCAA had been scheduled to distribute just under $600 million directly to conferences and schools from April 15 through June 10.

That would have represented a 1.7% increase over the amount budgeted for 2019, but the actual distribution for 2019 ended up being $611 million, according to the association’s recently released audited financial statement. (When the association runs an annual operating surplus, it often makes a supplementary distribution to Division I conferences and schools.)

The association said of the $225 million distribution, $50 million will come from NCAA reserves. The NCAA also has a $270 million event cancellation insurance policy, and the proceeds when received will be used to pay off a line of credit that will cover the remaining distribution within 12 months.

Awww! Da poor wittle NCAA with it's over 1 Billion in ratholed endowment funds from past NCAA tournaments, can't afford to pay da wittle schools they skim da full amount! Poor, poor, NCAA.

They lose 1 year of earnest on over a billion when they only pay the schools 1/6th of what they earn spread out to guarantee full interest on 5 year notes and we get this crap from them! It's time to put the kabosh on the NCAA and let the basketball conferences set their own tournament up and divide the proceeds after the tournament costs annually. Why should any quasi-governmental organization hold revenue for 5 years and rake in the interest for money they didn't earn.

That's like doing your chores and Mom withholding 5/6ths of you allowance and paying you 1/6th of it a year until you are out of the house and you get your last payment when you're 23.

Only academics would have ever fallen for this shyster deal.

(03-26-2020 03:54 PM)Wedge Wrote:  The NCAA has a policy that pays them $270 million for the cancellation of an event that cost them $1 billion in revenue, so they get back about a quarter of what they lost?

Sounds like the fire insurance policies that insurance companies sell to homeowners.

I don't believe the $1.1 billion per year goes into effect until 2024. I believe the NCAA is still under the prior 14 year, $10.8 billion deal.

(03-26-2020 04:32 PM)orangefan Wrote:  

(03-26-2020 03:54 PM)Wedge Wrote:  The NCAA has a policy that pays them $270 million for the cancellation of an event that cost them $1 billion in revenue, so they get back about a quarter of what they lost?

Sounds like the fire insurance policies that insurance companies sell to homeowners.

I don't believe the $1.1 billion per year goes into effect until 2024. I believe the NCAA is still under the prior 14 year, $10.8 billion deal.

Including ticket revenue, the NCAA's gross from March Madness is over $1 billion.

Many don't realize how it impacts non revenue sports and smaller colleges being impacted. Just think the impact on ESPN+ subscribers. You have to think some people are dropping it with no sports. Not sure how conferences with networks are impacted. Seems like they still get paid unless cable is dropped.

What about D2 & D3? From what I read, they are guaranteed 4.37% and 3.18% of all NCAA revenue, which if March Madness supplies the majority of and is about $1B, then that's $43.7M and $31.8M respectively.

From my understanding only a minuscule part of that ends up in the school's hands, but is used to run the divisions, conferences and tournaments.

I was listening to Ross Dellinger of SI on the way home from the grocery and he said that he talked with some G5 and P5 athletic directors about the hit.

From what he gathered, for the typical G5 this will mean about a 3% cut in the athletic budget, for the typical P5 about a 1% cut. He said the "big boys" won't notice it but it could result in significant reductions at G5 and lower schools, including cutting staff and possibly cutting sports.

(03-26-2020 04:49 PM)Wedge Wrote:  

(03-26-2020 04:32 PM)orangefan Wrote:  

(03-26-2020 03:54 PM)Wedge Wrote:  The NCAA has a policy that pays them $270 million for the cancellation of an event that cost them $1 billion in revenue, so they get back about a quarter of what they lost?

Sounds like the fire insurance policies that insurance companies sell to homeowners.

I don't believe the $1.1 billion per year goes into effect until 2024. I believe the NCAA is still under the prior 14 year, $10.8 billion deal.

Including ticket revenue, the NCAA's gross from March Madness is over $1 billion.

I believe they have a $40 million per year from ESPN for all other NCAA championships, including the CWS, the NCAA Women's Tournament, the NIT (which is now owned by the NCAA), the FCS playoffs, etc. So yes, there is more money than just the NCAAT TV deal.

(03-26-2020 06:10 PM)quo vadis Wrote:  I was listening to Ross Dellinger of SI on the way home from the grocery and he said that he talked with some G5 and P5 athletic directors about the hit.

From what he gathered, for the typical G5 this will mean about a 3% cut in the athletic budget, for the typical P5 about a 1% cut. He said the "big boys" won't notice it but it could result in significant reductions at G5 and lower schools, including cutting staff and possibly cutting sports.

That sounds very plausible to me.

For an athletic department that basically exists at the financial margins — I’m thinking of programs like UL-Monroe or Southern Miss, but I’m sure there are others — this is going leave some deep bite-marks.