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Where Does the NCAA Earn its Money, and Where Does that Money Go?

The D1 Men's Basketball National Championship Tournament takes place every March (commonly referred to as March Madness). A large portion of the population turns their attention to creating and betting on brackets. This tournament is probably the NCAA's biggest example of contradiction as across advertising platforms they tout their restriction on any type of sports gambling (all employees of an athletics department are restricted from gambling on any sport the NCAA sponsors at any level), while on the NCAA website there is a bracket competition. And the NCAA makes nearly 80% of their revenue by encouraging people to bet on their game.

It's obvious there's a lot of money being moved around in NCAA Athletics. To decide whether these revenue and expense streams should be adjusted to pay student-athletes, it's important to understand the current state of NCAA finances. These numbers come directly from the NCAA Website. A major consideration in these numbers is that the FBS College Football Playoffs and all of the bowl games are not actually operated by the NCAA. As a result, the NCAA spends nothing on these games and receives none of the profit. The College Football Playoffs is actually a separate operation bringing in more money than the Men's Basketball Championship and distributing directly to the conferences involved in the playoff committee. Click on each dollar amount to learn more.

1,061M

Revenue

Year ended 8/31/17

-

956M

Expenses

Year ended 8/31/17

=

105M

Profit

Year ended 8/31/17

844M

D1 men's basketball championship television and marketing rights

133M

championship ticket sales

The NCAA sponsors 90 NCAA championships and claims only 5 of these make a profit. The 5 profitable championships are all D1, men's sports including: Men's Basketball, Men's Ice Hockey, Men's Lacrosse, Wrestling, and Baseball.

The D1 College Football Playoffs and all of the bowl games are run independently of the NCAA, so the NCAA does not fund nor receive revenue from these games.

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other revenues from a variety of sources

217M

sport sponsorship and scholarship funds

Distributed to Division I schools to help fund NCAA sports and provide scholarships for college athletes.

165M

D1 basketball performance fund

Distributed to Division I conferences and independent schools based on their performance in the men’s basketball tournament over a six-year rolling period. The money is used to fund NCAA sports and provide scholarships for college athletes.

103M

D1 championships

Provides college athletes the opportunity to compete for a championship and includes support for team travel, food and lodging.

88M

other association-wide expenses

Includes support for Association-wide legal services, communications and business insurance.

85M

student assistance fund

Distributed to Division I student-athletes for essential needs that arise during their time in college.

74M

student-athlete services and championships support

Includes funding for catastrophic injury insurance, drug testing, student-athlete leadership programs, postgraduate scholarships and additional Association-wide championships support.

52M

D1 equal conference fund

Distributed equally among Division I basketball-playing conferences that meet athletic and academic standards to play in the men's basketball tournament. The money is used to fund NCAA sports and provide scholarships for college athletes.

48M

academic enhancement fund

Distributed to Division I schools to assist with academic programs and services.

43M

general and administrative expenses

Funds the day-to-day operations of the NCAA national office, including administrative and financial services, information technology and facilities management.

42M

D2 allocation

Funds championships, grants and other initiatives for Division II college athletes.

41M

membership support systems

Covers costs related to NCAA governance committees and the annual NCAA Convention.

32M

D3 allocation

Funds championships, grants and other initiatives for Division III college athletes.

10M

D1 conference grants for programming to enhance sports

Distributed to Division I conferences for programs that enhance officiating, compliance, minority opportunities and more.

3M

educational programs

Supports varous educational services for members to help prepare student-athletes for life, including the Women Coaches Academy, the Emerging Leaders Seminars and the Pathway Program.