Since the knock-out tournament of basketball NCAA, better known under the name of March Madness, has had to be cancelled because of the outbreak of coronavirus, the league will lose $ 375 million. This amount was to be distributed to universities on the circuit.
There is not that the basketball is touched, since the league has had to cancel all the championships in the remaining of the winter and spring in several sports.
The NCAA revealed Thursday in a press release that a total amount of $ 600 million was to be shared between the universities in June. This will eventually be $ 225 million that will be distributed, including $ 50 million from the currency reserves of the circuit. An amount of $ 53.6 million will be distributed between the teams of the first division.
“As an Association, we need to acknowledge the uncertainty of our financial situation, and continue to make prudent decisions and reflected on how we are helping student-athletes, now and in the future,” said the president of the Board of Governors and president of Ohio State, Michael V. Drake.
A large part of the losses of the NCAA is due to the gigantic tv contract of $ 8.8 billion $ that the league has with channels such as CBS and Turner. It is estimated that about 827 million $ $ $ $ the annual earnings of this agreement.
According to Drake, the NCAA has a cancellation insurance event of $ 270 million, which would offset some of the losses.