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The NCAA has no shortage of coming bills, but college sports’ governing body is prepared to commit major resources to a new effort.
Legislation was introduced to the Division I BOD yesterday that would provide units for the NCAA women’s basketball tournament beginning with the 2025 tournament. Should it pass during a final vote at January's NCAA Convention in Nashville, units would be paid out during the 2025-2026 fiscal year from a pool that starts at $15M and rises to $25M by 2027-2028 fiscal year.
The money in those pools would come from two places: the Equal Conference Fund (distributions for leagues that participate in the tournament) and a Basketball Performance Fund (distributions based on performance in the tournament), while the formula for distribution will be the same as is used on the men’s side.
“People are really excited about this,” NCAA President Charlie Baker said during a call today. “They think this is going to be a great thing for the game and a great thing for the tournament and for the schools. I'll be shocked if this thing has any issues at all [with passage].”
Distribution of units on the women’s basketball side has become an increasingly hot topic within college sports circles as prominent coaches like South Carolina’s Dawn Staley have voiced their support for such a system.
Central Arkansas President Houston Davis, who chairs the D-I BOD Finance Committee, noted the idea had percolated meaningfully for much of the last two years.
“I can certainly vouch that there were many conversations among presidents and athletic directors and individuals that were interested in growing and developing the women's game that wouldn't it be great if we could find a way to be able to do this,” Davis said. “It was an idea that was certainly circulating in the policy ecosystem that if there was an opportunity to be able to do this, let's make a move.”
The NCAA’s recent media rights deal with ESPN that covers women’s basketball, softball, volleyball and myriad other Olympic Sports provided the impetus and financial stability to move forward with further cash investment’s in the women’s basketball tournament, Baker said.
The ESPN deal that runs through 2032 -- the same year the men's deal with TNT Sports and CBS expires -- is worth an average of $115M annually, while production and marketing costs assumed by ESPN are expected to be around 25% more on top of that annual value. The new agreement is roughly three times the value of the previous contract that expired in 2024 and paid around $40M annually.
Despite discussion around spinning women’s basketball off into its own package, it was ultimately folded into the larger deal. Baker told SBJ at the time of the agreement's unveiling in January the NCAA valued the women’s basketball rights specifically at roughly $65M annually.
“I can tell you that from where I sat, ending up with an agreement with ESPN that will make it possible for us to create a separate value for the Women's Basketball Tournament was a major part of our strategy going into those negotiations, because we wanted to be in a position to put to put a structure like this in place,” Baker explained. “I know it was something that for many people around the organization -- both membership and folks in Indianapolis -- was an important element of that entire strategy in that whole negotiating process.”
That the NCAA is adding more costs to its bottom line comes amid questions about its long-term financial stability due to the pending settlement proposal in the House, Hubbard and Carter antitrust cases.
Back damages in the proposed settlement are the most prominent bills that could come due in the coming months as the NCAA and conferences would be on the hook for almost $2.8B regarding lost name, image and likeness wages over the next 10 years if the settlement passes.
The back pay portion of the agreement would include the NCAA shouldering around $1.1B in damages, while schools would be responsible for roughly $1.65B. The Power Five conferences are responsible for 40% ($664M) of the latter figure, while the 27 remaining D-I conferences would pay the other 60% ($990M) over 10 years through distribution reductions, among other measures.
That said, Baker made clear during the call that he sees the settlement and potential financial commitments that would be necessary because of it as independent of commitments to pay out units for the women's basketball tournament.
“I view it as a completely separate issue,” Baker said. “Every year we need to come up with the money we need to come up with out of the national office to pay the 42% we committed to as part of this settlement, if it eventually gets approved. The schools that were part of the community that put the rules in place for which the suits are based on [and] the formulas that have been developed and voted on by the membership are going to be required to finance their piece as well. But that should have no impact at all on the way this program works.”
