Division II Finances
Most NCAA revenue returns to the membership in the form of direct distributions and services for the membership. Division II annually receives 4.37 percent of all NCAA revenue, as guaranteed by the NCAA constitution.
In April 2010, the NCAA announced a new long-term media contract with CBS Sports and Turner Broadcasting System, Inc., worth more than $10.8 billion to present the Division I Men’s Basketball Championship. The new agreement began in 2011 and will continue through 2024.
Along with the increase in NCAA revenue, the CBS/Turner agreement means Division II now can project its operating revenue through the 2023-24 academic year. In 2011, the Division II Presidents Council approved a long-range budget that will ensure the continuation of valued programs, provide superior access to championships for the Division II membership and continue financial support for Division II conferences for the foreseeable future.
About 60 percent of the Division II budget is devoted to support the division’s 25 national championships that provide postseason competition experiences to more than 16,000 student-athletes each year.
Other allocations go directly to member schools and conferences through the Division II Enhancement Fund and the Conference Grant Program.
The NCAA Board of Governors created the enhancement fund in the late 1980s as a financial incentive for schools to maintain Division II membership affiliation. The allocation formula for the enhancement fund is as follows:
- 75 percent to member conferences based on the number of sports offered
- 25 percent divided equally among Division II member institutions
The Conference Grant Program helps support national and conference strategic-planning efforts. Conferences annually are required to complete a grant application noting how the conference will spend dollars consistent with the goals in the Division II strategic plan. Each conference is allotted $90,000 for its first five members. A $12,000 premium is paid for a sixth member, with an additional $4,000 premium paid for members up to 18.