After a year-long hiatus, the NCAA has been able to pull off a successful NCAA March Madness tournament with minimal COVID infections and exciting games throughout.
The NCAA receives about $870 million annually from television broadcast and marketing rights for the NCAA March Madness tournament and another $180 million from championship ticket sales.
Last year, the league was forced to initiate a contingency plan just days before the scheduled start of March Madness due to the COVID-19 outbreak.
Between losses from ticket sales and its multimedia agreement with CBS Sports (VIACA) - Get Report and Turner (T) - Get Report, the NCAA was projected to lose more than half of the $1.2 billion in revenue it reported in the previous year due to the cancellation of the tournament.
However, despite the huge loss of revenue, the NCAA reported only a loss of $56 million for the fiscal 2019-2020 year.
That was due to the league’s financial contingency plan which led to a 45% reduction in expenses and included $270 million in event cancellation insurance proceeds.
The NCAA’s event cancellation insurance helped offset the more than $800 million of lost revenue.