The cancellation of last season’s NCAA Tournament resulted in a $600M "annual decline in the association’s total revenue" for its FY '20, a decrease of more than 50% from '19, according to a document cited by Steve Berkowitz of USA TODAY. The audited financial statement showed a $700M "decline in television and marketing rights revenue, nearly all of which came from the NCAA’s multimedia and marketing rights contract with CBS and Turner." In the NCAA's FY '19, it reported nearly $868M in such revenue. The NCAA received $270M from event cancelation insurance, but that "covered only a small portion." The association "adjusted its distribution" to D-I schools and conferences, so only $246M went out in '20, compared to $611M in '19 (USA TODAY, 1/25).
BIG LOSSES AT DUKE: Duke Deputy AD/Resource Development & Management and CFO Mitch Moser projects a revenue loss of "at least $36 million" due to the pandemic and has "put financial measures in place to help make up for the loss." Moser last Thursday said that the department has "evaluated the best-case financial impact of the pandemic at three points." Matthew Griffin, a sportswriter for Duke's student-run newspaper, noted the university in June projected a loss of "at least $16.5 million in revenue" due to the "cancellation of last year's men's basketball tournament, reduced capacity for football and basketball games and a hit to philanthropic donations." In September, they projected "another $4.5 million in losses." Moser said that the department currently projects about "another $16 million in losses due to a lack of fans at basketball games and special events." Further interruptions to the basketball season "could cause another hit to revenue." Moser said that the department has "taken measures over the past year to account for the lost revenue ... including reducing financial aid expenses, cutting non-compensation operating budgets and salaries for employees making more than $50,000 a year, and starting a new fundraising initiative that has brought in more than $1 million." Moser said that after accounting for strategies to mitigate losses, the department projects a "budgetary gap of around $5 million to $7 million" (DUKE CHRONICLE, 1/23).
BUCKEYE MADNESS: Ohio State AD Gene Smith said the department is "going to be south of $70 million (short)." Smith: "I'm hopeful it'll be south of $60 million as far as our deficit is concerned." On when a ballpark figure for TV payouts might be known, Smith said, "We probably won't know until basketball is over because all of that is together. You have to take and consider whatever postponements occur in basketball. Fortunately most of our teams in the league have played a majority of their games. I know Nebraska is sitting right now, but there haven't been many cancellations yet. Knock on wood" (COLUMBUS DISPATCH, 1/24).
