How much did canceling the 2020 NCAA Tournament cost the organization and its members? A whole, whole lot. Today, the NCAA Board of Governors voted unanimously to distribute $225 million to Division I schools, a number that was previously budgeted at $600 million. Because of the coronavirus pandemic, all of that revenue from ticket sales and TV and marketing rights is dust in the wind.
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. The Board of Governors is urging its members to use the money they receive to help out their student-athletes during these uncertain times.
“Our priority is to ensure that we are able to support student-athletes and continue to provide opportunity as broadly as possible,” said Division I board chair and University of Kentucky president Eli Capilouto.
This year, $53.6 million will be distributed to each Division I basketball-playing conference. The remainder will be proportionally distributed through the remainder of all other funds.