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Division II evaluates impact of decreased revenue

President Council to make budgetary decisions April 28-29

As a result of the cancellation of the remaining winter and spring NCAA championships and subsequent budgetary impacts across the Association, Division II is projected to receive $30 million less than anticipated in 2020 from its annual NCAA revenue allocation.

The NCAA Constitution guarantees that Division II each year receives 4.37% of the actual NCAA revenue, and this year’s share is projected to be $13.9 million. In 2018-19, Division II received more than $44 million from NCAA revenue.

The NCAA receives most of its revenue from TV and marketing rights for the Division I Men’s Basketball Championship, as well as championship ticket sales. The revenue is used to provide distributions to member conferences and schools, along with funding championships, national programs and other initiatives to support student-athletes.

The Division II Administrative Committee, the group tasked with handling important Division II business in between quarterly meetings of the Presidents Council, already has begun evaluating the impact of the decreased revenue. The committee will continue its discussions and make budgetary recommendations for the Division II Planning and Finance Committee and the Presidents Council to consider at their meetings April 28-29.

A set of Division II budget guidelines and principles directs the division in light of an unexpected event to determine the use of Division II insurance and reserve dollars. The division will prioritize expenses in the following order:

1.     Contractual obligations.

2.     Championships.

3.     Enhancement fund.

4.     Conference grant program.

5.     Strategic initiatives.

“Division II, like our member institutions, has been actively responding to a range of issues created by the COVID-19 pandemic,” said Sandra Jordan, chancellor of South Carolina Aiken and chair of the Division II Presidents Council. “The NCAA and each division will experience a significant loss of revenue. But DII will continue to respond to every challenge with the best interest of our student-athletes in mind and work to protect those distinguishing aspects of a DII experience that we all value.”

Across the Association, budgetary decisions will continue to be made over the coming weeks and months. On Thursday, the Board of Governors voted to distribute $225 million in June to Division I members, a revenue distribution that was originally budgeted at $600 million.

Division III will receive 3.18% of the actual revenue, a figure currently projected to be $10.7 million, a $22 million decrease from last year.