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Thursday, January 30, 2025

NCAA introduces financial incentives for women's basketball success

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Santa J. Ono, Ph.D. President at University of Michigan - Ann Arbor | Official website

Santa J. Ono, Ph.D. President at University of Michigan - Ann Arbor | Official website

The NCAA has revealed plans to distribute payments to Division I conferences based on the performance of their teams in the NCAA women's basketball March Madness tournament. Richard Paulsen, an assistant professor of sport management at the U-M School of Kinesiology, explained that these funds will be directed towards colleges and universities within those conferences.

Starting this year, $15 million will be allocated to conferences depending on their teams' achievements in the tournament. This amount is set to increase over time, reaching $20 million for the 2026-27 fiscal year and climbing to $25 million by 2027-28. After achieving this fully funded status, the disbursements will grow at a rate consistent with other Division I funds.

Addressing misconceptions about fund distribution, it was clarified that "the way that many headlines are worded has led many to believe that the NCAA will be paying women’s teams directly for their success in tournament play." Instead, payments are made to conferences based on games played in the tournament over a three-year period. These funds are then evenly distributed among conference members' athletic departments.

In comparison to men's leagues, Paulsen noted that "these payments pale in comparison to disbursements for the men’s tournament," which amount to approximately $264 million. Despite higher viewership for last year's women's championship game compared to the men's, disparities remain due to differences in TV deals. The women's tournament was part of a broader TV deal valued at $65 million annually, whereas the men's event secures its own billion-dollar annual agreement.

The NCAA allocates disbursements from a portion of TV deals—26% for women initially—similar to what men received when such disbursements began. However, current agreements undervalue women's basketball relative to men's competitions. A recent TV rights deal covering women's tournaments extends through 2032.

Regarding usage of these funds by schools and potential player compensation: historically, disbursements have supported scholarships, staff salaries, and facility expenses. From the 2025-26 school year onward under new regulations, schools may directly compensate athletes using revenues from athlete NILs linked with ticket sales and media rights.

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