Mar 27, 2020

NCAA slashes distribution by $375 million

Posted Mar 27, 2020 10:34 AM

INDIANAPOLIS (AP) — The NCAA will distribute $225 million to its Division I members in June. That is $375 million less than had been budgeted this year because the coronavirus outbreak forced the cancellation of the men's basketball tournament.

The NCAA says $50 million will come from its reserve fund. A $270 million event cancellation insurance policy will help pay the rest.

March Madness is among the biggest revenue producers for the NCAA and its schools. It was canceled March 19, a week before the first round was scheduled to begin.

The NCAA pulled in more than $1 billion in revenue last year, including $867.5 million from the television and marketing rights for the Division I men's basketball tournament.

The NCAA had been scheduled to distribute $600 million to more than 300 Division I schools from April to June.