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Coronavirus issues cause NCAA to slash payouts to member schools

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.

The NCAA is working on ways to handle the loss of revenues from having the men's basketball tournament cancelled.

More:Giving NCAA athletes another year of eligibility for coronavirus cancellations is costly

More:As challenges loom for college athletics because of coronavirus, question becomes: Is the party over?

In a news release, the board said it wanted to stress “the importance of using the distributions to aid college athletes,” and said this move will allow schools to make plans while the NCAA works with its “contractual partners.”

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