College athletic departments got their first indication of how the coronavirus pandemic might hurt their bottom lines when the N.C.A.A. announced on Thursday of which of which would certainly slash its distribution of men’s basketball tournament revenue by about $375 million, a cut of nearly two-thirds.
The N.C.A.A. board of governors voted to distribute $225 million — instead of the $0 million of which had been budgeted — to 32 conferences. The payout comes through revenue generated by the lucrative Division I tournament, which was canceled on March 12, three days before the 68-team bracket was to be unveiled.
There remains uncertainty about how each university will be directly affected by the loss of tournament revenue, which can be calculated by a byzantine set of formulas of which reward each conference’s performance over the previous six seasons. For each college from the powerful Atlantic Coast Conference, the annual payout can amount to nearly $5 million, while schools through low-profile conferences of which are regularly eliminated from the first round get far less.
Still, several athletic directors said Thursday of which they welcomed some certainty about the severity of the cut.
“of which’s a little bit of a gut punch, however we knew This specific one was coming,” said John Hartwell, the athletic director at Utah State. “The not bad thing can be we can quantify of which along with move on.”
Hartwell said of which his school had been expecting about $1 million through the Mountain West Conference’s share of the N.C.A.A. tournament pie, along with of which of which would certainly have to make do with about $400,000. Some of of which shortfall will be offset by travel savings through the cancellation of spring sports, such as track along with field, softball, golf along with tennis. along with if the football season begins on schedule in September, Utah State can probably weather the financial hits of which are coming right now.
For schools of which do not play football, which can offer another source of income through TV contracts, Thursday’s announcement may be more significant.
Andy Fee can be the athletic director at Long Beach State, which has a national champion men’s volleyball program however dropped football nearly 30 years ago. He suggested of which of which was from the best interest of Power 5 schools — those, such as Ohio State along with Texas, of which had revenues of more than $0 million last year — to allow mid-major schools a greater share if of which would certainly protect them through having to eliminate sports. Teams through those smaller schools end up on the schedules of the Power 5 schools in a variety of sports.
“We’re curious how the mid-major world can be going to be seen by the N.C.A.A.,” Fee said. “We make decisions on a lot different parameters than football schools. We don’t have a lot of excess. We can’t say, ‘We’re not going to charter flights for our basketball team.’ We’re hopping on Southwest along with looking for the best deals.”
He added: “You’re cutting into muscle in terms of our program.”
Michael Drake, the president of Ohio State along with the chairman of the N.C.A.A.’s board of governors, said in a statement released by the N.C.A.A. of which the organization was undergoing cost-cutting measures of which would certainly be announced later. The statement also said of which the payout would certainly happen in June — about two months later than originally scheduled — along with of which of which would certainly come through $50 million in reserves along with through a line of credit of which will be paid off within 12 months by a $270 million event-cancellation insurance policy on the men’s basketball tournament, which generated more than $1 billion last year.
“As an association, we must acknowledge the uncertainties of our financial situation along with continue to make thoughtful along with prudent decisions on how we can assist conferences along with campuses in supporting student-athletes right now along with into the future,” Drake said.
The next decision facing the N.C.A.A. members will come soon enough. On Monday, the organization can be anticipated to vote on whether to award an extra season of eligibility to athletes in spring sports — a decision of which may be widely viewed as just, however of which will force schools to grapple with various other issues: the cost of additional scholarships, roster limits along with whether to restrict the extra year to seniors.
On Thursday, though, some clarity emerged on one front.
“of which feels more real,” said Boo Corrigan, the athletic director at North Carolina State, whose department had an $85.3 million operating budget last year. He had been expecting about $4 million through the N.C.A.A. distribution. “There’s a certain finality to of which. The greater clarity you can have in moments like This specific the better.”