Following the cancellation of last season's NCAA men's basketball tournament amid the COVID-19 pandemic, the NCAA experienced a $600 million annual decline in its total revenue for the 2020 fiscal year, according to USA Today.
USA Today obtained a copy of the league's new audited financial statement, which reportedly showed a revenue decrease of more than 50% compared to 2019.
The report also revealed "a $700 million decline in television and marketing rights revenue, nearly all of which came from the NCAA's multimedia and marketing rights contract with CBS and Turner. In the association's 2019 fiscal year, it reported nearly $868 million in such revenue."
While the NCAA was scheduled to receive $827 million from CBS and Turner for the 2020 tournament, it only collected $113.1 million.
The NCAA additionally lost over $800 million in revenue between losses from ticket sales and its TV/marketing rights agreements at March Madness. However, the league reportedly received $270 million from event cancelation insurance.
Due to the revenue losses, the NCAA distributed only $246 million to Division I schools and conferences in 2020, compared to $611 million in 2019.
Last season, the NCAA men's tournament was canceled in March as the coronavirus quickly spread across the U.S.
While the pandemic continues to grip the nation, the league announced earlier this month that it will hold March Madness in its entirety in the state of Indiana, with the majority of the tournament's 67 games taking place in Indianapolis. The decision was made "to enhance the safety and well-being of the event."
The 2021 tournament's relocation came after the NCAA pushed back the start of this college basketball season from Nov. 10 to Nov. 25. However, college hoops continue to see numerous games canceled or postponed due to the pandemic.
According to USA Today, the NCAA also has event cancelation insurance in place for the 2021 tournament.