NCAA’s record $71 million surplus in 2012
by Steve Berkowitz, USA TODAY Sports
The NCAA recorded a nearly $71 million surplus for its 2012 fiscal year, according to an audited financial statement the association released Wednesday.
The surplus, an all-time best for the organization, increased its year-end net assets to more than $566 million, roughly double where they stood at the conclusion of the 2006 fiscal year.
Among the NCAA’s $530 million in unrestricted assets was an endowment fund that had grown to more than $282 million as of the end of its 2012 fiscal year, Aug. 31. That’s more than double what the fund was worth six years earlier.
The new financial statement — dated Nov. 29, 2012 – also includes a item that reiterates the NCAA’s oft-expressed confidence in its ability to prevail in an anti-trust lawsuit concerning the use of football and men’s basketball players’ names, images and likenesses. The case, pending before a U.S. District Court in California, is in the midst of legal wrangling about whether it should be certified as a class action. If it receives that designation, thousands of current and former college athletes likely would be brought into the matter and billions of dollars in damages potentially would be at stake.
The financial statement’s notes about the NCAA’s commitments and contingencies say, in part: “The NCAA and its legal counsel are defending against lawsuits and claims arising in the normal course of its day-to-day activities. The NCAA does not believe the ultimate resolution of these matters will result in material losses or have a material adverse effect on the consolidated financial position, change in net assets or cash flows of the NCAA.”
This would be relatively routine language, but for the attention on the anti-trust case, whose named plaintiffs include former UCLA basketball star Ed O’Bannon.
The NCAA had nearly $872 million in total revenue in fiscal 2012, according to the financial statement, and nearly $801 million in total expenses. In 2011, it had nearly $846 million in revenue and $778 million in expenses.