Major-college athletics directors are planning on the NCAA not being able to cover all of the revenue it will lose because of the cancellation of the Division I men’s basketball tournament due to the coronavirus outbreak, six ADs and college sports administrators have told USA TODAY.
That is likely to result in a reduction of the association’s scheduled distribution of $600 million to Division I schools and conferences this spring, the ADs and administrators said. How much of a reduction is still to be determined, and that will depend on the association’s ability to tap its reserves and borrow money.
The ADs and administrators spoke on the condition of anonymity because the financial details are still being worked out.
“The economics of all this could definitely be extensive,” one AD said.
The NCAA has about $275 million in business-interruption insurance connected to the tournament coming. The men’s tournament rakes in almost $900 million for the organization, so you do the math.
The NCAA’s 2020 Revenue Distribution Plan calls for the association to make payouts to Division I schools from April 15 through June 10. Just over $220 million in payments are scheduled for April 15, but those may be delayed.
One AD said it will take a long time for the finances to be fully determined and sorted out legally.
You can bet athletic directors across the country are already doing just that.