Pandemic fallout: NCAA slashes distribution by $375 million

The seating area at Bankers Life Fieldhouse is empty as media and staff mill about, Thursday, March 12, 2020, in Indianapolis, after the Big Ten Confe...

The seating area at Bankers Life Fieldhouse is empty as media and staff mill about, Thursday, March 12, 2020, in Indianapolis, after the Big Ten Confe...

The NCAA will distribute $225 million to its Division I members in June, $375 million less than had been budgeted this year because the coronavirus pandemic forced the cancellation of the men's basketball tournament.

The NCAA said Thursday $50 million will come from its reserve fund. A $270 million event cancellation insurance policy will be used to pay off a line credit that will cover the remaining distribution.

The NCAA had been scheduled to distribute $600 million to more than 300 Division I schools from April to June.

The NCAA pulled in more than a $1 billion in revenue last year, $867.5 million from the television and marketing rights for the the Division I men's basketball tournament.

The tournament was canceled March 19, a week before the first round was schedule to begin.