The NCAA on Thursday announced it will distribute $225 million to Division I schools in June, a figure that was unanimously approved by the board of governors.
That figure is less than half of the budgeted $600 million the organization planned to send out, had the NCAA tournament been played.
“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 Ohio State president and NCAA board of governors chairman Michael V. Drake. “As an Association, we must acknowledge the uncertainties of our financial situation and continue to make thoughtful and prudent decisions on how we can assist conferences and campuses in supporting student-athletes now and into the future.”
Fifty million of that $225 figure will come from reserves, and the NCAA will use its $270 million event-cancellation insurance policy to pay off a line of credit that will cover the remainder of the money paid to schools.
While Division I schools are forced to deal with massive shortfalls, they get off easy compared to lower-level schools. From the NCAA:
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.
Based on those figures, Division II is looking at a budget shortfall just north of 70 percent, while Division III’s is in the range of 67 percent.
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