In response to the cancellation of all remaining winter and spring NCAA championships, the Board of Governors has voted unanimously to distribute $225 million in June to Division I members; nearly 400 million less than originally budgeted.
Division I revenue distribution for 2020 previously was budgeted at approximately $600 million, with the first distribution scheduled for April.
The NCAA receives most of its revenue from the Division I Men’s Basketball Championship television and marketing rights, as well as championship ticket sales. The revenue is used to provide distributions to member conferences and schools along with funding championships, national programs and other initiatives to support student-athletes.
In its decision, the Board of Governors stressed the importance of using the distributions to aid college athletes during the uncertainty of the current environment, along with the importance of planning carefully with less revenue. The decision also allows membership to engage in planning while the NCAA continues to work with its contractual partners.
“We are living in unprecedented times not only for higher education, but for the entire nation and around the globe as we face the COVID-19 public health crisis,” said Michael V. Drake, chair of the board and president of The Ohio State University.
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.
To further assist with the reduction in revenue this year, Drake emphasized the NCAA is undertaking a variety of cost-cutting budget measures that will be determined in the upcoming weeks.
The Division I Board of Directors determined how the distribution will be shared among members.
For this year’s Division I distribution, $53.6 million will be distributed through the Equal Conference Fund, which is split equally among Division I basketball playing conferences that meet athletic and academic standards to play in the men’s basketball tournament. The remainder will be proportionally distributed through the remainder of all other funds. The funds will be unrestricted to provide latitude to conferences.
The Mid-Eastern Athletic Conference is scheduled to receive $5,721,636 which includes $503,026 for Hampton University and $461,063 for North Carolina A&T State. The SWAC will get $4,732,765 led by Alabama State University ($538,077).
Tennessee State University is scheduled to receive $393,758 as a member of the Ohio Valley Conference.
The distribution formula was based on Division I membership during the 2013-14 athletics season.
Division II will receive 4.37% of actual revenues, currently projected to be $13.9 million for the division, which is a $30 million decrease from last year. Division III will receive 3.18% of actual revenues, currently projected to be $10.7 million for the division, which is a $22 million decrease from last year. These amounts will be used to fund national programs.