The NCAA basketball season is underway and there are already several bumps in the road in this Covid era. Numerous head coaches have already tested positive and a slew of games had to be postponed or cancelled. Some schools have paused all men’s basketball activities due to Covid. Gonzaga and Baylor managed to stay 1 & 2 respectively in the rankings. Though, Baylor had to adjust their schedule when head coach Scott Drew tested positive and Gonzaga played even with a positive Covid test for a player and a staff member.
Like many other sports, NCAA basketball is proving they will knock together a season… however that season looks in the end. The goal is to make it to March Madness, which provides about 75% of the NCAA’s revenue stream — a revenue stream they did not have this year due to everything being cancelled in the spring.
Reports are that the NCAA lost $375 million with the canceling of March Madness. Some reports say that amount is much higher. The NCAA was supposed to distribute $600 million to 1200 schools across all divisions but ended up only being able to distribute $225 million. That’s a huge difference. Many schools can only operate athletic programs with that influx of money — particularly their lesser known programs, like tennis and swimming.
But what is even more shocking is that the NCAA reportedly had $500 million in reserves just a few years ago because they worried student athletes would decide not to play unless the NCAA allowed them to be compensated. Instead of continuing to save it, the NCAA spent the money because they felt having that cash pile was inviting lawsuits.
And funny enough, a large amount of the $500 million in reserves was used to settle a class action lawsuit.
With the football season having been a mess, who knows how much money it has actually made. I’m sure there has been significant revenue lost, which means less money already to distribute to schools. It’s easy to see why March Madness is so important. And why the NCAA powers that be are having a panic attack right about now.
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