The National Collegiate Athletic Association (NCAA) has released its audited financial statement, revealing a US$59 million deficit for the 2022 fiscal year, despite generating US$1.14 billion in revenue.

This year marked the return to regular competition in the Division I men’s and women’s basketball tournaments, resulting in a major increase in revenue.

However, these gains were offset by net investment losses and a one-time charge tied to the creation of a self-insurance entity to cover potential tournament cancellations and litigation costs.

Despite the loss, the NCAA reported net assets of nearly US$458 million.

On the expense side, the NCAA reported US$1.195 billion in spending, a 16% increase from the previous year, with the majority going to Division I conferences and schools.

The NCAA also created a new business entity to serve as an insurance company, which cost the organisation US$84 million.

This move was taken to insure against future cancellations of basketball tournaments due to pandemic or war, but the money remains part of the NCAA’s consolidated financial structure and can be used for other purposes within certain state regulations.

Additionally, the NCAA increased its spending on travel and event operations, accounting for a $57 million rise, as a result of championship events.

The increase in travel spending pushed the NCAA past its 2019 spending.

According to NCAA managing director of financial operations, David Lafiosca, some of the increase was due to gender-equity initiatives, but more will show up in the 2023 fiscal year.