The Economic Impact of College Basketball Cancellations

Colleges around the country will also be feeling the financial strain that comes with the NCAA's decision to cancel sports.

As the American people are still reeling from decisions made during the COVID-19 crisis, college institutions could be facing hardships as well. According to Sports Illustrated's Brian Burnsed, the NCAA's annual March Madness basketball tournament is responsible for 80 percent of the annual revenue.

Smaller schools, commonly known as Cinderella teams, receive money for participating in the tournament and often see a significant uptick in enrollment and donations following exposure from deep runs in the tournament. 

No tourney, no TV money and a reserve that's been drained by lawsuits

One former NCAA writer assesses the financial impact of a coronavirus shutdown https://t.co/0wRUZdxUgr

— SI College Hoops (@si_ncaabb) March 13, 2020

Tuesday the SEC announced the cancellation of all sports for the remainder of the 2019-2020 season. 

South Carolina athletic director Ray Tanner said in a press conference last Friday that the university will face a significant financial blow, though how much has not yet been determined.

"Certainly there will be economic impact but that has not been our focus," Tanner said. "Our focus has been the health and well-being of everybody involved. People that are that are in this community, in the city, in this state and that's been our emphasis, in particular our student athletes...the financial impact will be there, but that's not our main focus right now."

Tanner did explain that the school would be able weather the financial storm that comes with not hosting the first two rounds of the women's NCAA tournament as the South Carolina Gamecocks were projected to be the top seed overall in the tournament.