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NCAA significantly cuts payouts to Division I schools following tournament cancelation

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The cancelation of the NCAA tournament was a big hit financially.

NCAA Basketball: NCAA Tournament-Columbus Practice Rick Osentoski-USA TODAY Sports

The cancelation of the NCAA Tournament hit hard for the NCAA, but it may have hit Division I schools even harder.

With a previous budget of around $600 million to distribute between division one schools prior to the cancelation of the NCAA tournament, that budget was significantly cut down to $225 million, the NCAA announced on Thursday.

With no tournament, obviously money from ticket sales, different marketing schemes, TV commercials, etc. could not be used to bring in any revenue. The NCAA tournament is where the NCAA makes the bulk of their money for the fiscal year, so this was a big blow to them and the schools and conferences.

The NCAA has a $270 million insurance cancelation policy, which will be used to pay off a line of credit that will cover remaining distribution over 12 months.

With the cancelation of the tournament, $53.6 million will be distributed to each division one playing conference and the remainder of the money will be distributed proportionally after that.