NCAA distribution to member schools shrinks by $375 million

The NCAA announced Thursday distributions to its members schools would be significantly less than previously budgeted.

The expected distribution, around $600 million, has been reduced to $225 million, in large part because of the canceled NCAA men’s basketball tournament.

Indiana released its own statement Thursday afternoon, reiterating it would look for ways to compensate for the shortfall. In the 2019 fiscal year, IU reported $4,748,561 in revenues from NCAA distributions. That’s out a total of $127.8 million in revenues for the athletic department.

“As is the case with so many other organizations in our community, across the country and around the world, the Coronavirus pandemic is having and will continue to have a significant negative financial impact on our department and all of intercollegiate athletics,” IU athletic director Fred Glass said in a statement. “In addition to pursuing our number one priority of helping to protect the health and safety of our students, coaches, staff and fans, we have also been working to mitigate the financial impact of the anticipated reductions in the distributions we traditionally receive from the NCAA and the Big Ten.”

Among the ways IU will look to compensate for lost distribution money is by deferring “any non-essential building and maintenance projects and purchases,” the release said. There is also a university-wide hiring, promotion, and bonus freeze to deal with financial uncertainties.