NCAA Reports More Than $1 BILLION in Revenues for 2017
Turns out running a business in which you employ thousands of people but don’t actually pay them is a pretty sweet racket.
According to an audited financial statement released on Wednesday, the NCAA brought in nearly $1.1 BILLION in revenues in 2017. It marks the first time the NCAA has ever surpassed the six-figure mark, with most of the growth coming from increasing TV and marketing fees, which totalled $821 million.
Of course, the NCAA had also had operating expenses in 2017 totalling a little more than $956 million, of which $560.3 million was distributed to Division I members. So the NCAA only keeps $105.5 million of the $1.1 billion they collected. And because they are technically a non-profit organization, that $105.5 million is really an “operating surplus” that gets added to the NCAA’s “total net assets,” which now sit at just under $399 million.
With that kind of “operating surplus,” it’s no wonder NCAA president Mark Emmert reportedly gets paid $2 million per year.
Basically, the only people not making money in the NCAA are the athletes. NCAA refuses to allow them to make any money off their own images or likeness, but the money these athletes bring in makes millionaires out of coaches.
Hat Tip – [USA Today]