General > General Division III issues

NCAA: D3 funding to be cut by more than two-thirds


Ron Boerger:

--- Quote ---Division III will receive 3.18% of actual revenues, currently projected to be $10.7 million for the division, which is a $22 million decrease from last year. These amounts will be used to fund national programs.
--- End quote ---

Get ready for smaller tournaments, longer bus rides, stays at camping grounds, or all of the above.

Dave 'd-mac' McHugh:
Let's not jump to too many conclusions as of yet ...

A rainy day fund had been established since the last budget snags and they had a lot of money in there. How much? I don't remember. Will it cover everything? No clue and probably not.

Furthermore, they may be able to grab money not spent this year. We were halfway through basketball championship and none of the spring championships had spent large chunks of money. They may be able to hold on to that money as well.

Smaller tournaments would require an emergency vote, I suspect, of the entire division to approve. I am not sure if that is possible.

But I have started to ask questions and we shall see what the answers are. I think this is worth watching at this point ... versus speculating. We really just don't know what will or won't happen. We have nothing to reference.

Ron Boerger:
The NCAA story talks about using "$50 million in reserves" to cover the initial $225 million D1 distribution, and "a $270 million event cancellation insurance policy, and the proceeds when received will be used to pay off a line of credit that will cover the remaining [D1] distribution within 12 months."  Not clear if that refers to another distribution or the $175 million from this one; my guess is the latter.

The D2/D3 payments, on the other hand, are a simple "x.xx% of revenue".

We all look forward to whatever additional context your contacts can provide. 

Dave 'd-mac' McHugh:
I'm learning this money has to do with THIS academic year. Not the next academic year. So the money paid out currently goes towards what has already been spent (and what was to be spent).

Apparently we will learn more tomorrow from the DIII perspective, but it appears about $18.2m was already spent and this goes towards that. There will be a deficit for this academic year of about $7.6m and the reserves (rainy day fund) will handle that (to some degree; again I can't remember how much was in the reserves).

We shall learn more tomorrow probably ... but NEXT academic year is not affected by this allotment of money as I understand it.

EDIT: I am now told there is a push to get that release and information about the impact on DIII sent out as soon as possible (before tomorrow) because questions are coming in pretty heavily (no surprise).

Dave 'd-mac' McHugh:

It has been a few years since Division III found itself at a place where so many important decisions needed to be made along with other events needing time and attention. However, never in NCAA history have we found ourselves with winter championships cut short, no spring sports at all, and more questions than answers for what might happen with fall sports and beyond.

COVID-19 has certainly made it's mark.

However, the coronavirus isn't the only important item in front of Division III that requires attention and decisions. Expanding and realigning regions in all sports is nearing the end of a multi-year process. The NCAA's effort to revamp it's student-athlete rules with "Names, Images, Likeness" (NIL) is at critical juncture, especially in DIII. And with the shutdown of 'March Madness' brought with it a sudden budget deficit.

That's just what Division III is dealing with overall. Individual schools are fighting just to keep the doors open. That could result in cutting sports, teams, or other challenges. That could cause conferences to tackle sudden changes in membership or sports sponsorships.

And of course, student-athletes and their well-being is even more important.

Plenty to be thinking about in Division III even athletes and teams are not competing right now.

On this special Hoopsville Podcast, NCAA Vice President for Division III Dan Dutcher joins Dave McHugh for an extensive, in-depth, and detailed conversation on the "State of DIII." Dutcher talks about how the decisions to shut down winter and spring championships came to be. Plus, how COVID-19 continues to impact the division, NCAA, schools, and conferences around the country. Dutcher explains how this year's DIII budget was impacted and if there will be any impact down the road. And Dutcher discusses how NIL is taking form in DIII along with the latest on Regional Realignment and Expansion.
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