The NCAA on Wednesday announced the national office surpassed financial goals for the fiscal year, and $55 million of the resulting budget surplus will be used to offset the expected payments for damages in the preliminarily approved House settlement.
Assuming court approval of the settlement, the move reduces back damages for each conference this upcoming fiscal year by 33%. The decision to direct the surplus to reduce the cost burden was made in consultation with South Dakota Attorney General Marty Jackley, who raised financial concerns of some schools that are not in autonomy conferences.
"Thanks to financial reforms at the NCAA, the national office will be able to cover a larger share of the back damages, resulting in significant savings for our schools in this first year," NCAA President Charlie Baker said. "After discussing the cost implications with many schools in DI, and after productive discussions on the matter with Attorney General Jackley, we are pleased to invest these surplus funds back into DI athletic departments."
The NCAA is reducing costs and generating new revenue, all while continuing to increase investments in student-athlete experiences. The surplus was achieved even as the NCAA increased its financial investments in additional services for student-athletes, including launching a post-eligibility insurance program in 2024. The new program is fully operational and supports student-athletes beyond their playing days to cover costs associated with injuries they incurred while playing or practicing their sport.
The financial reforms at the NCAA come on the heels of the Association's successful launch of a fan data sharing effort. The data sharing effort enables the NCAA to drive up attendance at championship events and help schools and conferences do the same for their competitions.
The proposed House settlement, which was preliminarily approved and now awaits final approval by a federal judge, would allocate $2.8 billion in payments of back damages to thousands of student-athletes. Moving forward, the settlement will enable schools to direct nearly 50% of an average autonomy conference school's athletics budget to student-athletes in the forms of scholarships and new financial benefits.
Should the settlement be approved, the autonomy conferences will be responsible for several elements of the proposal, including the annual approximately $20.5 million cap for financial benefits a school may direct to student-athletes. The autonomy conferences are also responsible for a series of rules regarding third-party name, image and likeness contracts.
