College basketball teams that advance to the championship round of the NCAA Tournament could start to receive additional funds for their postseason success as early as 2026, according to a new proposal from the NCAA Division I Board of Directors.
Under the current revenue structure in men's and women's basketball, conferences receive "units" for each NCAA Tournament game their member schools participate in, up until the Final Four. For example, Gonzaga and Saint Mary's each brought the West Coast Conference two units for making it to the second round of the 2025 NCAA Tournament this past March.
However, a team that was eliminated from the postseason in the Elite Eight round — like Michigan State or Alabama — brought the Big Ten and SEC the same amount of units that Houston did to the Big 12, despite the fact that the Cougars advanced all the way to the national title game before losing to Florida.
In an effort to change how teams and conferences are rewarded for outstanding postseason play, the Division I Board of Directors proposed a distribution model that would grant each participating team in the national championship game an additional unit, with another unit reserved for the national champions.
"As Division I sports move into a new era of increased financial benefits for student-athletes, the NCAA continues to grow revenues and limit expenses, allowing the national office to invest in championships in a fiscally responsible manner," said Mario Morris, chief financial officer for the NCAA, in a statement. "While there are several more steps in the process, this is a significant positive development and, if ultimately approved, will further benefit Division I members."
The NCAA Board of Governors will need to approve the use of extra funds so the new distribution model can be put into place for the 2026 men's and women's basketball tournaments. NCAA rules require any changes to revenue distribution to be approved in a vote by all Division I members using a one-school, one-vote method.
If the additional funds are approved by the Board of Governors, Division I schools are expected to move forward with a vote during the NCAA Convention in January.
For each unit earned, a conference has about $2 million to share with its members over a six-year span in men's basketball and a three-year stretch in women's basketball. Women's basketball distribution funds were approved by the NCAA in January and will be implemented starting with the 2026 tournament.
"Rewarding teams and the conferences they represent for wins they earn on the biggest of stages has always seemed like a sensible thing to do," said Bubba Cunningham, chair of the NCAA Division I Men's Basketball Committee and director of athletics at North Carolina. "With each conference annually receiving north of $300,000 per unit over a six-year period, and with three additional units up for grabs for competing in and winning the national championship game, once fully implemented, roughly $6 million will be distributed on an annual basis to the leagues whose teams win games at the Men's Final Four. This is a positive step in further supporting conferences, institutions and student-athletes."
Heading into the 2025 NCAA Tournament, Gonzaga had earned more units than any program in the country had over the last seven seasons. The Zags made it to the Sweet 16 every postseason in that stretch, including a pair of national title game appearances in 2017 and 2021.
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