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Report: College ADs preparing for NCAA being unable to cover lost revenue over tournament cancellation
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Canceling the NCAA Tournament comes at a price for the organization, the conferences and individual schools this year. According to a report from USA Today, college athletic directors are planning on the NCAA to not be able to recover at least a portion of the financial losses.
The NCAA was scheduled to distribute $600 million to Division I schools and conference this spring. Many schools are preparing to see a reduction in those distributions, though the size of the cut is not yet known.
Per the report, the NCAA does have “business-interruption” insurance in connection with the NCAA Tournament. That covers approximately $250 million to $275 million. It’s also unclear how quickly the association would have access to that money.
The NCAA Tournament and several conference tournaments were canceled last week as a result of the COVID-19 pandemic. All sports across the country have been postponed until further notice.
USA Today also reports that the NCAA depends on the annual March Madness tournament for a good portion of its $1.1 billion in normal annual revenue.
Dustin grew up in the heart of Big Ten country and has been in sports media since 2010. He has been covering Big Ten football since 2014. You can follow him on Twitter: @SchutteCFB