Report: NCAA posts $9 million deficit in 2015 fiscal year

https://es.sports.yahoo.com/blogs/ncaaf-dr-saturday/ncaa-posts--9-million-deficit-in-2015-fiscal-year-211024778.html

The NCAA had an operating deficit in 2015. According to USA Today, the sanctioning body posted a $9 million annual deficit. A spokesperson for the NCAA told USA Todaythat the deficit was because of a poorly-performing stock market. USA Today reported it was the first time the NCAA had posted an annual deficit in the 11 years the media outlet had been tracking the NCAA's finances. A comparison of the association's past two financial statements shows that the annual loss for 2015 is driven by a dramatic change in the performance of the association's investments. In fiscal 2014, the NCAA reported more than $82 million in investment income. In 2015, it reported nearly $21 million in investment losses. NCAA spokeswoman Stacey Osburn said the association attributes most of those losses to the large stock-market decline that occurred in August 2015. That month, the Standard & Poor's 500 index endured its worst monthly performance since May 2012, according to S&P Dow Jones Indices. The Dow Jones industrial average and the Nasdaq composite index both fell by more than 6% in August 2015. And while the NCAA's investments didn't perform as well as expected, the sanctioning body also increased payouts by $20 million to over $920 million in expenses. Combine that with a $76 million loss of revenue (to $912 million) and the deficit happened. If the NCAA has a better year in the stock market in 2016 (it's not looking good so far) it could top $1 billion in revenue. It isn't in immediate financial danger with the deficit, either. USA Today reported it had over $650 million in "unrestricted net assets." According to the NCAA's 2015-2016 Division I distribution plan, the NCAA will distribute $544,580,000 in revenue to member institutions at its highest level. The largest chunk, $205 million, comes from the basketball fund. - - - - - - - Nick Bromberg is the assistant editor of Dr. Saturday on Yahoo Sports. Have a tip? Email him at nickbromberg@yahoo.com or follow him on Twitter! Follow @NickBromberg