Although the NCAA Division I men’s basketball championship budget for the 2018-19 season was $ 28 million – almost double the women’s budget – information provided by the NCAA on Friday also shows that the men’s tournament generated a total net revenue of $ 864.6 million that season. The women’s event lost $ 2.8 million – the biggest loss of any NCAA championship.
In light of the recent disparities between the men’s and women’s tournaments that were made public this month, ESPN and The New York Times have requested NCAA tournament quotes for this season, but NCAA officials said the most recent and available data is of the last fully completed set of championships, which is 2018-19 because of the pandemic. The 2020-21 budgets are expected to be similar to the data provided on Friday.
The NCAA announced on Thursday that it had hired a law firm to conduct an independent review of the gender equity of its championships in all three divisions and for all sports. Kathleen McNeely, NCAA’s chief financial officer, told ESPN on Friday that the external review will help determine whether budgets are part of the problem, but that there are reasons for the discrepancies.
“They have different budgets, but the difference in budgets is because of the scale of the two tournaments,” said McNeely, “… and the nuances in delivery, which tend to be committee decisions about how they are going to deliver these championships. No I’m saying that there may be no minor problems, but, in my opinion, there is a lot of parity between male and female basketball tournaments, as we see from an individual student-athlete experience, which tends to be our focus. “
According to the NCAA, championship budgets are determined and approved each year. The current budgets for the tournament were determined last June, but have been completely changed because of the pandemic. The NCAA will not know the full count until it ends, as it is estimated to cost $ 14 million to create the male “bubble” experience, including the COVID-19 test, and $ 16 million for the female bubble. McNeely said the NCAA is paying roughly the same amount, about $ 2 million each, just for testing at the tournament venues.
The NCAA board of governors has final approval on championship budgets, which are recommended by the board’s audit and finance committee.
The male tournament budget for the 2018-19 season was $ 28 million, while the female tournament was $ 14.5 million, but the NCAA points to “important differences in tournament structures” that resulted in lower costs for the women’s championship. This year’s women’s tournament, which is taking place in San Antonio, is unique because, normally, women’s games in the first and second rounds are played on campus and hosted by the team with the most seeds. This format was agreed in 2014 to help increase fan interest and participation. In the men’s tournament, all 32 games in the first and second rounds are played at neutral locations and result in additional expenses. The men’s tournament also has four more teams and an additional round (the First Four).
The NCAA points to the savings made by reduced expenses for these games as the biggest component that explains a large part of the budget discrepancy, but in the information provided to ESPN, the organization specifically details a difference of only $ 7.1 million:
• $ 2.7 million in travel: only seven men’s teams went to the games, while 16 women’s teams did not travel for the first and second rounds and another 16 drove.
• $ 1.7 million in daily rates: The NCAA said that daily rates, even in high-cost cities, are equal for men and women. With 16 women’s teams hosting games in the first two rounds, however, the NCAA said there had been savings in food costs and hotel expenses.
• $ 1.1 million for an additional round: The men’s tournament pays for the First Four, which the women’s tournament does not include.
• $ 1.6 million for facilities: The Men’s Final Four includes additional seats (and storage costs) to convert a football stadium into a basketball arena. Costs for building women’s basketball are generally less than $ 20,000.
“For me, it’s important for fans to understand that the policies around men’s and women’s tournaments are the same,” said McNeely. “They have the same rules about how much schools reimburse for daily fees, they have exactly the same travel policy … the aim of all of this is that the experience for the student-athlete is a great experience, it is like experience and that we are offering the same opportunities for student-athletes, regardless of the tournament in which they are playing. “
The information provided by the NCAA also shows a sharp contrast in total revenue. Men generated $ 917.8 million, including media and ticket revenue, while women generated $ 15.1 million, also including media and ticket revenue. Full participation explains part of the disparity, as the men’s basketball tournament had 690,000 fans, while the women’s tournament had 275,000 fans.
The women’s tournament is not the only sport that loses money. The NCAA hosts 90 championships in its three divisions, and only five of them generate any revenue. The money is lost simply because the expenses necessary to carry out the championship exceed the revenue generated, including the money from the TV.
According to the NCAA, the men’s basketball tournament pays for almost all other NCAA championships in all but four divisions: baseball, men’s ice hockey, men’s lacrosse and men’s wrestling, all in Division I. These championships also generate more revenue than expenses and helps to cover the costs of other championships. Since the NCAA is a private organization, it is not subject to Title IX rules or requests under the Freedom of Information Act. NCAA President Mark Emmert was not available for comment on Friday, but is expected to address the media next week.