The NCAA operated at a nearly $59 million deficit for its 2022 fiscal year after generating revenue of $1.14 billion, the association’s new audited financial statement shows.

Steve Berkowitz of USA Today reported that the NCAA had a revenue of $1.14 billion according to a new audited financial statement. Its net assets still stood at nearly $458 million as of Aug. 31, 2022. The association also increased the amount of money it distributed to Division I conferences and schools.

One significant spending increase was an $84 million charge taken as the NCAA on March 1, 2022, established a new business entity that is essentially an insurance company owned by the association itself. According to the National Association of Insurance Commissioners website, such entities are “typically established to meet the unique risk-management needs of the owners or members.”

The need primarily was to insure against a future cancellation of the basketball tournaments because of a pandemic or a war. Because of the COVID-19 pandemic, the NCAA could no longer get such coverage in the commercial event-cancellation insurance market, Berkowitz reported.

The other greatest areas of spending increase were in travel and event operations. Together, they accounted for a nearly $57 million rise, and director of accounting Keith Zapp said this came from spending connected to championships. The increase in travel spending pushed the NCAA just past the amount it spent in fiscal 2019 – the last year before the pandemic.