National Collegiate Athletic Association |
The NCAA News - News and FeaturesSeptember 1, 1997 Budget supports new NCAA structure The first budget approved by the NCAA Executive Committee in the Association's new governance structure supports the NCAA's approach toward greater federation by division.
The budget features total operating expenses of $265.6 million, $181.1 million of which is devoted to Division I distributions and championships. The allocation is $11.1 million for Division II (4.37 percent of the operating revenue, as is now required legislatively) and $8.1 million for Division III (3.18 percent). (In both cases, the percentage is based on the $267.0 in net revenues, less $12.5 million, which is money that relates to the one-time only payment of $50 million that the NCAA received from CBS in January 1996. That revenue is not subject to the allocation percentages.) In Division I, both the Division I men's basketball fund and the "broad-based" funds (sports-sponsorship and grants-in-aid) will increase 10 percent in 1997-98 to a total of $55 million each. The same funds paid $31 million as recently as four years ago. In addition, the conference grant for each Division I conference was increased 6.3 percent to $170,000 -- a total expenditure of $5.1 million. The overall distribution to Division I members -- made mostly through the five funds of the revenue-distribution plan -- is $146.4 million, a 10.4 increase over 1996-97.
Other significant changes relating to Division I:
Significant changes in Association-wide programs and services include:
The cost of administrative services will be about $32.2 million. That is 12.1 percent of the overall budget, 0.1 percent more than 1996-97. One notable change at the national office will involve moving most of the staff from an Apple computer environment to one that is based on Microsoft Windows. Also, a new telephone system should result in improved service for the membership. At its August meeting, the Executive Committee determined that it would like to see future budgets presented more concisely. It also agreed with a set of recommendations from the old Executive Committee regarding the budget policy. The Executive Committee agreed:
In a matter not directly related to the budget, the Executive Committee noted that a review period of the NCAA Foundation is appropriate and warranted. The Executive Committee now will begin a formal assessment of the Foundation's future.
1997-98 general operating budget-- 1996-97 -- 1997-98 REVENUE -- Budget -- Budget NCAA operating revenue -- -- -- Television -- $191,125,000 -- $213,625,000 Royalties -- 13,945,000 -- 17,232,000 Division I men's basketball -- 15,640,000 -- 17,140,000 Other Division I championships -- 7,938,000 -- 7,790,000 Division II championships -- 766,000 -- 750,000 Division III championships -- 350,000 -- 320,000 Sales and services -- 1,946,000 -- 1,946,000 General revenue (investment, dues, fees) -- 7,690,000 -- 8,220,000 Total NCAA operating revenue -- $239,400,000 -- $267,023,000 Associated organizations -- -- -- National Youth Sports Fund -- 12,000,000 -- 11,520,000 NCAA Foundation -- 2,160,000 -- 2,555,000 Total Associated Organizations -- 14,160,000 -- 14,075,000 Total all revenue -- 253,560,000 -- 281,098,000 -- -- -- -- 1996-97 -- 1997-98 EXPENSE -- Budget -- Budget Distribution to Division I members Division I men's basketball fund -- 50,000,000 -- 55,000,000 Grants-in-aid fund -- 33,334,000 -- 36,667,000 Sports-sponsorship fund -- 16,666,000 -- 18,333,000 Academic-enhancement fund -- 15,250,000 -- 15,250,000 Special assistance fund -- 10,000,000 -- 10,000,000 Membership trust -- -- 3,500,000 Conference grants -- 4,800,000 -- 5,100,000 Supplemental investment income distribution -- 2,500,000 -- 2,500,000 Royalties -- -- -- -- -- Total distributions to Division I members -- $132,550,000 -- $146,350,000 -- -- -- Division I men's basketball -- 12,070,000 -- 12,900,000 Other Division I championships -- 19,016,000 -- 21,822,000 Division II allocation -- 8,341,000 -- 11,122,000 Division III allocation -- 5,346,000 -- 8,094,000 Catastrophic insurance -- 3,687,000 -- 3,687,000 Sports sciences -- 2,836,000 -- 2,898,000 Legal services -- 2,500,000 -- 3,000,000 Scholarships -- 1,690,000 -- 1,879,000 Initial eligibility -- 1,600,000 -- 2,000,000 Contingency -- 1,500,000 -- 1,500,000 Youth clinics and camps -- 1,221,000 -- 1,421,000 Basketball research and promotion -- 0 -- 1,325,000 Liability insurance -- 795,000 -- 875,000 Officiating improvement programs -- 582,000 -- 617,000 Convention -- 521,000 -- 478,000 Research -- 504,000 -- 469,000 Award ceremonies -- 369,000 -- 400,000 Membership seminars -- 334,000 -- 475,000 Athletics certification & education program -- 238,000 -- 285,000 Grants to affiliated organizations -- 178,000 -- 178,000 National Youth Sports Program -- 234,000 -- 234,000 Fellows Program -- 200,000 -- 100,000 Citizenship through Sports -- 0 -- 100,000 Governmental affairs -- 114,000 -- 119,000 Information technology -- 75,000 -- 330,000 Sports agents and gambling -- 64,000 -- 64,000 Professional development -- 60,000 -- 60,000 Gender-equity resource center -- 30,000 -- 20,000 National Student-Athlete Day -- 30,000 -- 30,000 Membership dues -- 25,000 -- 30,000 Marketing, licensing, and promotions -- 1,222,000 -- 2,270,000 Public affairs -- 4,399,000 -- 4,518,000 (Publications, television productions, The NCAA News, promotion, etc.) Committee expense -- 3,000,000 -- 3,750,000 Administrative services -- 28,820,000 -- 32,213,000 Total NCAA operating expense -- $234,151,000 -- $265,613,000 Contingency for extraordinary expenses -- 2,000,000 -- 2,000,000 Excess of revenues over expenses -- 3,749,000 -- 0 Associated organizations National Youth Sports Fund, Inc. -- 12,000,000 -- 11,520,000 NCAA Foundation -- 1,660,000 -- 1,965,000 Total associated organizations -- 13,660,000 -- 13,485,000 Total all expense -- $253,560,000 -- $281,098,000
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The 1997-98 budget, which was approved at the Executive Committee's August 13 meeting in Atlanta, is based on total operating revenue of $267.0 million, an increase of 11.5 percent over 1996-97. A portion of the increase comes from the escalating rights fee paid by CBS Sports ($210.9 for 1997-98, a $22.5 million increase over 1995-96). The NCAA is in the fourth year of the eight-year CBS contract.
The Division I budget also includes a contribution of $3.5 million to a membership trust. Between now and the time the next television contract is negotiated, the NCAA will contribute to the trust. When a new contract is signed, if the revenue is greater than in the previous agreement, the money (plus interest) will be returned to the Division I membership through the basketball and broad-based funds. If, however, the revenue were to decline, the Association would use the trust to continue programs and services through the transition.