NCAA sets new revenue record at $1.28b for 2022/23 financial year

The National Collegiate Athletic Association (NCAA) has announced that it generated USD$1.28 billion in revenue for the 2022/23 fiscal year, according to its annual financial filing. This figure represents a significant increase of nearly $150 million compared to the previous fiscal year.

The bulk of the NCAA’s revenue, totalling $945 million, came from media rights and marketing income. Despite this substantial revenue, the association also incurred expenses amounting to $1.17 billion – with $669 million allocated to the 363 Division I member schools.

At the conclusion of the reporting period, the NCAA reported holding $565 million in net assets, with an additional $62 million in net investment gains.

When adjusted for inflation, it falls slightly below the figure recorded in 2019. The significant income for the past fiscal year was largely attributed to the men’s Division I basketball tournament rights deal with CBS and Warner Bros Discovery, which amounted to a staggering $873 million.

The NCAA’s TV revenue is expected to remain relatively stable for fiscal 2024. However, the following year will see a substantial increase with the commencement of the $1.1 billion broadcast extension for the men’s basketball tournament, coinciding with ESPN’s new agreement worth $115 million for rights to more than 40 college sports competitions, including the women’s edition of March Madness.

Despite these positive developments, the NCAA faces a significant challenge in the form of a major antitrust lawsuit challenging its name, image and likeness (NIL) rules. If the lawsuit is successful, the NCAA could be compelled to issue a multibillion-dollar payout to former and current college athletes, presenting a potential financial setback for the organisation.

Image credit: Keenan