The NCAA handed out sanctions to the Louisville basketball program Thursday morning. In their decision, the Division I Committee on Infractions Panel said the "former Louisville director of basketball operations acted unethically when he committed serious violations by arranging striptease dances and sex acts for prospects, student-athletes and others, and did not cooperate with the investigation […]"
Among the harshest of the penalties levied against the program was the revocation of funds they were due to receive from their appearance in the 2012, 2013, 2014, and 2015 NCAA tournaments. This total is equal to roughly $1.9 million. Interestingly, the direct quote is this:
"The university must also return to the NCAA the money received through conference revenue sharing for its appearances in the 2012, 2013, 2014 and 2015 NCAA Division I Men’s Basketball Championships. Future revenue distributions that are scheduled to be provided to the university from those tournaments also must be withheld by the conference and forfeited to the NCAA."
Very specifically it notes that Louisville must return the money it received through conference revenue sharing for ITS appearances in the tournament. It doesn't say the school must return money OTHER schools in its conference earned. [divider]
[divider]The NCAA Tournament Fund is explained here. Basically, for each game in which a school competes, the NCAA pays somewhere from $200k-300k to the school's conference each year for the next six years. Since Louisville played five NCAA Tournament games in 2012 (the first year to which sanctions are applied), they earned their conference five 'units' of roughly $240k per year for six years — a grand total of $1.2 million per year and $7.2 million over the course of six years.
The NCAA recommends the conference divide that money evenly among its member schools. They are not required to do so, but most do.
Since Louisville was a member of the 16-school Big East at the time, they should theoretically have received $450k for their effort. They also would receive money for the tournament games played by every other school in the Big East. The other Big East schools would have earned the same.
The Big East was due to receive their final installment of Louisville's 2012 winnings this year. They still will, but any money Louisville has already earned or would earn from that distribution must be paid back to the NCAA. The same is true of the $589k the Louisville basketball team earned for their National Championship run in 2013, the $405k they would have earned for 2014, and the $408k they would have earned for their 2015 tournament appearance.
Beyond that, the school also self-imposed a $5,000 penalty. This was a good-faith gesture by the school, before the NCAA handed down its ruling. Turns out it wasn't NEARLY enough.
On top of the monetary fines, the Louisville basketball program will also forfeit two scholarships this year, and a further two within the next four years of probation.
It's hard to measure the impact of anything beyond the nearly $2 million in direct dollars lost by the program. But you can bet it won't be good for business.