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Division III to experience $7.6 million deficit in 2019-20

Revenue allocation to go from $33 million to $10.7 million due to winter and spring championship cancellations

Division III will experience a $7.6 million deficit for the 2019-20 fiscal year as a result of the cancellation of the remaining winter and spring championships.

Each division is expected to lose approximately 70% of its annual estimated revenue for the year, Kathleen McNeely, NCAA senior vice president of administration and chief financial officer, said during a meeting Tuesday of the Division III Strategic Planning and Finance Committee. The budget impact will reduce Division III’s revenue allocation this year to approximately $10.7 million, as opposed to $33 million.

The division already had paid for all fall championships, a portion of winter championships and most of its nonchampionships initiatives. As a result, it spent about $7.6 million more than the $10.7 million in revenue it will receive. Division III spends approximately 75% of its annual revenue on championships and 25% on other initiatives, such as conference strategic grants and diversity grants.

The committee voted to cancel all remaining staff-administered nonchampionships programs, such as Gameday the DIII Way Ambassador Program, DiSC programming, the CoSIDA Student Program and New Athletics Director Orientation, to save approximately $350,000. Staff already canceled the SWA Program, Institute for Administrative Advancement and the Next Steps Program.

“Health professionals across the nation, including those at the NCAA, have been clear that gatherings of any kind could contribute to the spread of COVID-19,” said Fayneese Miller, chair of the committee and president of Hamline. “We are being both responsive to and protective of the needs of our students and our colleagues by putting them first rather than an event.”

Additionally, the committee passed a blanket waiver that provides all conference offices relief for any unspent conference strategic grant funds within each tier, per the conference grant policies. The committee also passed a one-year blanket waiver extension for conferences that rolled over funds into 2019-20 (the new deadline is August 2021).

The Division III Administrative Committee approved the program cancellations and conference grant waiver recommendations during a conference call Thursday.

Division III, like Divisions I and II, is feeling the effects of winter and spring championship cancellations, which have resulted in a significant reduction in broadcast and ticket revenue. The division’s mandated reserve policy (50% of the annual revenue allocation), coupled with a surplus above the reserve, has positioned the division to address this year’s revenue shortfall.

“The financial loss for Division III will be significant, but money should never take precedence over life. We value people above all else,” Miller said. “The losses will impact money available for students and programming now and in the future, but Division III has done an incredible job in managing our resources and is uniquely prepared to weather the financial storm we face.”