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NCAA News Release

FOR THE RECORD: NCAA Responds to Atlanta Journal Constitution Article Titled "Megabucks, No Taxes Make Colleges Cheer"

For Immediate Release

Saturday, March 31, 2007
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Mike Knobler's March 31 story, "Megabucks, no taxes make colleges cheer" misrepresents some facts, omits others and makes it impossible for the reader to get a clear understanding of the NCAA's mission, what the Association does with its revenue and why the association is tax exempt. Knobler incorrectly states that the NCAA has operating revenues of "almost $8 billion…" In fact, the NCAA's annual revenue is approximately $550 million and the association redistributes 95 percent of those funds back to member schools to assist with academic and athletic programs. Those funds provide resources to operate new and existing academic support programs, assist student athletes in an emergency, drug testing and education programs, student athlete insurance programs, and funds 88 championships, among other things.

Knobler is also off the mark when he infers the NCAA is no different than big business…and should pay taxes. Not for profit status is linked to the purpose for which revenues are spent, not the amount of revenue generated . The NCAA meets its educational mission by providing the resources and programs necessary for student athletes to be successful both in the classroom and on the field of competition.

Bob Williams
Managing Director of Public and Media Relations


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