The NCAA is a nonprofit organization, which had revenues of $797 million for 2012-13.  Most of the NCAA’s revenue comes from a 14-year, $10.8 billion agreement with Turner Broadcasting and CBS Sports for rights to the Division I Men’s Basketball Championship — AKA “March Madness”.  The original agreement was extended in 2016 and now runs through 2032.

Please follow this link to the

NCAA Financial Website

and review the revenue, expense and distribution information and NCAA Financial Statements  .  Do you think the NCAA should be considered for profit based on your evaluation?  Please explain.

http://www.ncaa.org/about/resources/finances

National Collegiate
Athletic Association
and Subsidiaries
Consolidated Financial Statements as of and
for the Years Ended August 31, 2011 and 2010,
Supplementary Information as of and for the
Year Ended August 31, 2011, and
Independent Auditors’ Report

INDEPENDENT AUDITORS’ REPORT

To the Executive Committee of
National Collegiate Athletic Association
Indianapolis, Indiana

We have audited the accompanying consolidated statement of financial position of the National
Collegiate Athletic Association and subsidiaries (the “NCAA”) as of August 31, 2011, and the related
consolidated statements of activities and cash flows for the year then ended. These financial statements
are the responsibility of the NCAA’s management. Our responsibility is to express an opinion on these
financial statements based on our audit. The consolidated financial statements of the NCAA for the year
ended August 31, 2010, before the effects of the adjustments to retrospectively apply the change in
accounting discussed in Note 12 to the consolidated financial statements, were audited by other auditors
whose report, dated December 10, 2010, expressed an unqualified opinion on those statements.

We conducted our audit in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes consideration of
internal control over financial reporting as a basis for designing audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the NCAA’s
internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.

In our opinion, such 2011 consolidated financial statements present fairly, in all material respects, the
financial position of the NCAA at August 31, 2011, and the results of their operations and their cash
flows for the year then ended in conformity with accounting principles generally accepted in the United
States of America.

As discussed in Note 2 to the consolidated financial statements, the NCAA has changed its method of
accounting for goodwill and intangible assets in 2011 due to the adoption of ASU 2010-07, Not-for-Profit
Entities (Topic 958): Not-for-Profit Entities: Mergers and Acquisitions.

We have also audited the adjustments to the 2010 consolidated financial statements to retrospectively
apply the change in accounting for noncontrolling interests in 2011, as discussed in Note 12 to the
consolidated financial statements. Our procedures included verifying the appropriateness of the
presentation of noncontrolling interests in the consolidated financial statements. In our opinion, such
retrospective adjustments are appropriate and have been properly applied. However, we were not engaged
to audit, review, or apply any procedures to the 2010 consolidated financial statements of the Company
other than with respect to the retrospective adjustments and, accordingly, we do not express an opinion or
any other form of assurance on the 2010 consolidated financial statements taken as a whole.

– 2 –

Our audit was conducted for the purpose of forming an opinion on the basic consolidated financial
statements taken as a whole. The additional information included in the schedule of consolidating
statement of activities for the year ended August 31, 2011 is presented for the purpose of additional
analysis and is not a required part of the basic consolidated financial statements. This additional
information is the responsibility of the NCAA’s management. Such information has been subjected to the
auditing procedures applied in our audit of the basic consolidated financial statements and, in our opinion,
is fairly stated in all material respects when considered in relation to the basic consolidated financial
statements taken as a whole.

December 22, 2011

– 3 –

NATIONAL COLLEGIATE ATHLETIC ASSOCIATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF AUGUST 31, 2011 AND 2010

2011 2010

ASSETS

CASH AND CASH EQUIVALENTS 6,183,004$ 12,250,965$

INVESTMENTS 470,180,042 451,202,188

PREPAID EXPENSES 9,134,174 9,217,528

RECEIVABLES:
Accounts receivable — net 29,298,004 11,726,854
Contributions receivable — facilities — net 35,514,450 31,506,703

Total receivables — net 64,812,454 43,233,557

GOODWILL 8,630,568 23,784,589

INTANGIBLE ASSETS — net 2,844,499 4,078,835

INVESTMENT IN YOUTH BASKETBALL, LLC 1,316,975 871,945

PROPERTIES — net 42,798,313 24,937,310

OTHER ASSETS 1,318,003 1,376,583

TOTAL 607,218,032$ 570,953,500$

LIABILITIES AND NET ASSETS

LIABILITIES:
Accounts payable and accrued liabilities 29,850,630$ 24,626,771$
Distribution payable 7,816,598 11,357,632
Deferred revenue and deposits 24,855,290 22,444,460
Bonds payable — net 45,199,726 47,939,712
NIT payable — net – 19,262,432
Accrued lease expense 3,683,720 1,412,752

Total liabilities 111,405,964 127,043,759

NET ASSETS:
Unrestricted — attributed to NCAA 460,759,475 407,795,576
Temporarily restricted 34,607,305 32,667,250
Permanently restricted 148,034 148,034

Total NCAA net assets 495,514,814 440,610,860

Noncontrolling interests net assets — Unrestricted 297,254 3,298,881

Total net assets 495,812,068 443,909,741

TOTAL 607,218,032$ 570,953,500$

See notes to consolidated financial statements.

– 4 –

NATIONAL COLLEGIATE ATHLETIC ASSOCIATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED AUGUST 31,

2011

(With summarized comparative financial information for the year ended August 31, 2010)

2010
Temporarily Permanently Summarized

Unrestricted restricted restricted Total Total

REVENUES:
Television and marketing rights fees 690,314,434$ – $ – $ 690,314,434$ 645,691,980$
Championships and NIT tournaments 93,412,324 – – 93,412,324 71,922,650
Investment income — net 32,883,900 569,844 – 33,453,744 24,404,962
Sales and services 21,756,945 – – 21,756,945 18,031,455
Contributions – other – 190,382 – 190,382 239,276
Contributions — facilities — net – 6,823,352 – 6,823,352 (10,468,065)

Total revenues 838,367,603 7,583,578 – 845,951,181 749,822,258

RECLASSIFICATIONS:
Temporarily restricted resources used for occupancy
costs 4,885,482 (4,885,482) – – –
Temporarily restricted resources used for program
services 758,041 (758,041) – – –

Total reclassifications 5,643,523 (5,643,523) – – –

EXPENSES:
Distribution to Division I members 480,012,096 – – 480,012,096 434,648,083
Division I championships, programs, and NIT
tournaments 74,375,700 – – 74,375,700 67,662,850
Division II championships, distribution, and programs 31,696,364 – – 31,696,364 28,510,292
Division III championships and programs 22,019,890 – – 22,019,890 19,897,645
Association-wide programs 134,253,166 – – 134,253,166 124,135,246
Management and general 35,706,613 – – 35,706,613 32,370,217

Total expenses 778,063,829 – – 778,063,829 707,224,333

NET INCREASE IN NET ASSETS BEFORE
OTHER CHANGES IN NET ASSETS 65,947,297 1,940,055 – 67,887,352 42,597,925

OTHER CHANGES IN NET ASSETS — Change in
accounting principle (15,985,025) – – (15,985,025) –

TOTAL CHANGE IN NET ASSETS 49,962,272 1,940,055 – 51,902,327 42,597,925

CHANGE IN NET ASSETS ATTRIBUTED TO
NONCONTROLLING INTEREST 3,001,627 – – 3,001,627 588,597

CHANGE IN NCAA NET ASSETS 52,963,899 1,940,055 – 54,903,954 43,186,522

NCAA NET ASSETS — Beginning of year 407,795,576 32,667,250 148,034 440,610,860 397,424,338

NCAA NET ASSETS — End of year 460,759,475$ 34,607,305$ 148,034$ 495,514,814$ 440,610,860$

See notes to consolidated financial statements.

2011

– 5 –

NATIONAL COLLEGIATE ATHLETIC ASSOCIATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED AUGUST 31, 2011 AND 2010

2011 2010

CASH FLOWS FROM OPERATING ACTIVITIES:
Change in NCAA net assets 54,903,954$ 43,186,522$
Adjustments to reconcile change in net assets to net cash provided by operating activities:
Depreciation and amortization 3,513,194 10,757,129
Amortization of bond premium (179,986) –
Change in unrealized gain on investments (21,326,296) (17,276,248)
Impairment 15,985,025 –
Loss in equity of joint venture 428,152 1,181,648
Realized loss (gain) on investments (4,326,336) 739,480
Loss on disposal of properties 5,555 –
Changes in noncontrolling interest (3,001,627) (588,597)
Changes in certain assets and liabilities:
Receivables (21,578,897) 18,096,260
Prepaid expenses 83,354 1,260,218
Other assets 58,580 (157,846)
Accounts payable and accrued liabilities 3,464,667 (6,284,821)
Deferred revenue and deposits 2,410,830 13,734,131
NIT payable (7,842,309) (1,472,222)
Accrued lease expense 2,270,968 (4,507,823)

Net cash provided by operating activities 24,868,828 58,667,831

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (19,796,255) (9,359,590)
Increase in accounts payable and accrued liabilities related to capital expenditures 579,026 1,268,230
Purchases of investments (38,581,463) (133,329,367)
Proceeds from sales of investments 45,256,242 71,255,262
NIT payable (11,420,123) (3,777,778)
Investment in Youth Basketball, LLC (873,182) (1,839,584)

Net cash used in investing activities (24,835,755) (75,782,827)

CASH FLOWS FROM FINANCING ACTIVITY:
Distribution payable (3,541,034) 3,060,009
Proceeds from issuance of bonds payable – 20,141,773
Principal payments on bonds payable (2,560,000) (1,630,000)

Net cash provided by (used in) financing activities (6,101,034) 21,571,782

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (6,067,961) 4,456,786

CASH AND CASH EQUIVALENTS:
Beginning of year 12,250,965 7,794,179

End of year 6,183,004$ 12,250,965$

SUPPLEMENTAL CASH FLOW INFORMATION — Cash paid for interest 1,631,411$ 1,347,055$

NONCASH TRANSACTIONS — Purchases of property, plant, and equipment 1,847,256$ 1,268,230$

See notes to consolidated financial statements.

– 6 –

NATIONAL COLLEGIATE ATHLETIC ASSOCIATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF AND FOR THE YEARS ENDED AUGUST 31, 2011 AND 2010

1. THE ASSOCIATION

The National Collegiate Athletic Association (the NCAA or the Association) is an unincorporated
not-for-profit educational organization founded in 1906. The NCAA is the organization through which
the colleges and universities of the nation speak and act on athletic matters at the national level. It is a
voluntary association of more than 1,200 institutions, conferences, and organizations devoted to the
sound administration of intercollegiate athletics in all its phases. Through the NCAA, its members
consider any athletics issue that crosses regional or conference lines and is national in character. The
NCAA strives for integrity in intercollegiate athletics and serves as the colleges’ national athletics
accrediting agency. A basic purpose of the NCAA is to maintain intercollegiate athletics as an integral
part of the educational program and the athlete as an integral part of the student body.

The NCAA operates through a governance structure, which empowers each division to guide and
enhance their ongoing division-specific activities. In Division I, the legislative system is based on
conference representation and an eighteen member Board of Directors that approves legislation. The
Divisions II and III presidential boards are known as the Presidents Council; however, legislation in
Divisions II and III is considered through a one-school, one-vote process at the NCAA Annual
Convention. The governance structure also includes an Executive Committee composed of sixteen chief
executive officers (member institution chief executive officers) that oversee association-wide issues,
which is charged with ensuring that each division operates consistently with the basic purposes,
fundamental policies, and general principles of the NCAA. The Executive Committee has representation
from all three divisions and oversees the Association’s finances, legal affairs, and the hiring and
evaluation of the Association’s President.

The NCAA is also comprised of the following entities:

 Collegiate Sports, LLC was formed in May 2007 for the purpose of being the sole member of certain
limited liability companies organized by the NCAA including:

o NIT, LLC, the entity that administers the NIT Season Tip-Off and the Postseason NIT collegiate
basketball events.

o Eligibility Center, LLC, which performs academic and amateurism eligibility certification
decisions for prospective student-athletes desiring to compete for NCAA Divisions I and II
member institutions.

o College Football Officiating, LLC, which pursues the development and maintenance of a
national Division I college football officiating program.

o Indiana Host Committee, LLC, which serves as the local organizing committee for Men’s and
Women’s Division I Basketball Championships hosted in the state of Indiana and also supports
other championships conducted in Indiana.

– 7 –

o Men’s College Basketball Officiating, LLC and Women’s College Basketball Officiating, LLC,
which were formed to help improve the quality and consistency of officiating during NCAA
basketball games, primarily at the Division I level.

 The Arbiter, LLC was formed in September 2008 for purposes of acquiring The Arbiter from an
outside party. The Arbiter develops web-based applications for the officiating market. In fiscal 2009,
38.33% of The Arbiter was sold in two transactions and that portion is controlled by other outside
entities.

 eOfficials, LLC was also formed in September 2008. eOfficials provides web-based educational and
certification applications for athletic officials. In fiscal 2009, 7.5% of eOfficials was sold as part of a
transaction to purchase Excel Sports Officiating.

 Collegiate Properties, LLC was organized in January 2009 for the primary purpose of advancing
youth-based initiatives. Collegiate Properties, LLC, in cooperation with NBA Youth Basketball
Holding, LLC, a member of the National Basketball Association (NBA) formed the joint venture
Youth Basketball, LLC. Youth Basketball, LLC was organized for the purpose of focusing on
activities and initiatives relating to youth basketball. Collegiate Properties, LLC own a 50% interest
in Youth Basketball, LLC and accounts for its investment using the equity method of accounting.

 March Madness Athletic Association, LLC was formed in February 2000 to settle a dispute between
the NCAA and the Illinois High School Association (IHSA) over ownership of the March Madness
trademark and to enhance the enforcement efforts against illegal use of the trademark. See further
discussion in Note 8.

The financial results of the NCAA and the above entities are consolidated in the financial statements of
the NCAA. All significant intercompany balances and transactions have been eliminated in
consolidation.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Net Assets — The classification of the NCAA’s net assets and its revenues, expenses, gains, and losses
is based on the existence or absence of donor-imposed restrictions. Net assets are grouped into the
following three categories:

Unrestricted Net Assets — Net assets that are not subject to donor-imposed stipulations. Unrestricted net
assets may be designated for specific purposes by action of the Executive Committee.

Temporarily Restricted Net Assets — Net assets whose use by the NCAA is subject to donor-imposed
stipulations that can be fulfilled by actions of the NCAA pursuant to those stipulations or that expire by
the passage of time.

Permanently Restricted Net Assets — Net assets subject to donor-imposed stipulations that neither
expire by the passage of time nor can be fulfilled or otherwise removed by the NCAA.

Investments — Investments include debt and equity securities and U.S. government obligations having
a maturity of more than three months, or intended to be held more than three months, and shares in
mutual funds. Publicly traded investments are stated at fair value based on quoted market prices. Pooled
equity and debt investments that are not publicly traded are stated at net asset value, as a practical
expedient to fair value based on the NCAA’s ownership percentage of the pooled investments multiplied
by the fair value of the publicly traded underlying investments.

– 8 –

Investments include $2,437,046 and $19,937,836 as of August 31, 2011 and 2010, respectively, which
are restricted under the 2010 bond indenture for the payment of costs associated with the expansion of
NCAA’s headquarters.

Accounts Receivable — Accounts receivable are amounts due to the NCAA from championships and
various contractual rights fees, including a receivable of $13,594,891 from the Houston NCAA Final
Four Organizing Committee, Inc. in connection with activities related to the 2011 Men’s Division I Final
Four Championship which occurred in Houston, Texas. Accounts receivable are shown net of an
allowance for uncollectibles.

Contributions Receivable, Other — Legally enforceable grants and pledges, including unconditional
promises to give, are reported at their fair value at the date of the gift, less an allowance for uncollectible
amounts, using a discount rate to reflect present value. All contributions receivable are considered to be
available for unrestricted use unless specifically restricted by the donor.

Deferred Revenue and Deposits — Deferred revenue is generated by the sale of championship tickets
up to a year before the actual event. Once the event occurs, the related revenue will be recognized.
Deposits are funds to be returned to applicants who do not receive tickets for the event due to the
demand exceeding the supply. Membership dues for future periods billed and collected prior to year-end
are recorded as deferred revenue.

Revenue Recognition — Revenue related to the CBS and ESPN agreements is recognized when earned
pursuant to the corresponding agreement. Membership dues and all other revenue is recognized when
earned.

Distribution of Revenues — In August 1990, the NCAA Executive Committee approved a plan to
distribute revenues to member institutions for the year ended August 31, 1991, and each year thereafter.
For Division I members, the plan consists of a basketball fund distribution based on historical
performance in the Division I Men’s Basketball Championship, a broad-based distribution based on
Division I sports sponsored and athletics grants-in-aid, a conference grant program, and student
assistance funds for current Division I student-athletes to be used for academic and other needs. For
Division II members, the plan consists of a basketball fund distribution based on historical performance
in the Division II Men’s and Women’s Basketball Championship, sports sponsorship, and an equal
distribution among all active members.

The distribution payable of $7,816,598 and $11,357,632 as of August 31, 2011 and 2010, respectively,
primarily consists of payments that were made in late August that remained outstanding at the end of
each fiscal year.

Cable Television Royalties Payable — The NCAA has represented the interests of the membership
before the Copyright Royalty Tribunal (the Tribunal) regarding rights fees for cable television
broadcasts of collegiate sporting events since 1978. The NCAA acts as the collection agent for any cable
television broadcast fees that relate directly to NCAA members or the NCAA. As a result, a liability is
recorded for fees received from the Tribunal that will ultimately be disbursed to members. Although
claims are filed each year for the previous calendar year, royalties are distributed to claimants only when
any and all controversies are resolved with the claimants. No cable television broadcast fee obligations
were recorded as of August 31, 2011 or 2010.

– 9 –

Amounts are distributed after all legal claims have been resolved. Several years may pass before the
copyright office determines through administrative proceedings among the claimants that an allocation
should be distributed. For the fiscal year ended August 31, 2011, $2,049,897 was distributed for
royalties for the years 1999–2003, 2006 and 2008. For the fiscal year ended August 31, 2010,
$4,372,996 was distributed for royalties for the years 1999–2003 and 2006.

Goodwill and Intangible Assets — In accordance with Accounting Standards Update 2010-07, the
NCAA adopted Financial Accounting Standards Board (FASB) Accounting Standards Codification
(ASC) No. 350, Intangibles — Goodwill and Other (“ASC 350”), and Accounting Standards
Codification No. 360, Property, Plant, and Equipment (“ASC 360”), on September 1, 2010 which
dictates that goodwill is no longer amortized, but an impairment test must be performed at adoption and
at least annually. As a result of impairment testing, NCAA recorded total impairment charges at
adoption for intangible assets of $15,985,025.

Long-Lived Assets — The NCAA identifies and records impairment losses on long-lived assets
whenever events or changes in circumstances indicate the carrying amount of such assets may not be
recoverable. In accordance with the provisions of FASB ASC Subtopic 360-10, Property, Plant, and
Equipment — Overall, recoverability of those assets is determined by comparing the forecasted
undiscounted cash flows attributable to such assets over their remaining useful lives to their carrying
value. If the carrying value of the assets exceeds the forecasted undiscounted cash flows, then the assets
are written down to their fair value. Fair value is determined based on discounted cash flows or appraisal
values, depending upon the nature of the assets.

Properties — Properties are recorded at cost. Maintenance and repairs are expensed in the year
incurred. Expenditures that result in betterment or extensions of the useful lives of assets and exceed
$1,000 are capitalized and depreciated over the remaining lives of such assets. Depreciation expense is
computed using the straight-line method over the estimated useful lives of the assets. Leasehold
improvements are capitalized and amortized over the lesser of their estimated lives or the life of the
related lease.

Association-Wide Programs — Association-wide program expenses include costs for student-athlete
programs and services, membership educational and promotional programs and services, legal services,
and governance committee expenses. Expenses have been classified as program or management and
general based primarily on actual expenditures. Fundraising costs for the NCAA are insignificant due to
the nature of its operations.

In-Kind Exchanges — In-kind exchanges for goods and services are reflected as royalties and sales and
services revenue and a related expense in the accompanying consolidated financial statements at their
estimated values at date of receipt. In-kind exchanges for which no objective basis is available to
measure the value are not reflected in the consolidated financial statements.

Income Taxes — The NCAA is exempt from federal income taxes under the provisions of
Section 501(c)(3) of the Internal Revenue Code. Income tax expense is provided for unrelated business
income, if any.

ASC Topic 740, Income Taxes, prescribes a recognition threshold and measurement attribute for the
financial statement recognition and measurement of a tax position taken or expected to be taken in a tax
return, and provides guidance on derecognition, classification, interest and penalties, disclosure, and
transition. The NCAA adopted the disclosure provisions of ASC Topic 740 for its August 31, 2010
consolidated financial statements. Management asserts that no such uncertain tax positions exist for the
NCAA at August 31, 2011 or 2010.

– 10 –

Estimates — The preparation of consolidated financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities as of the
date of the consolidated financial statements, and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates.

3. CASH AND CASH EQUIVALENTS

Short-term investments with an original maturity of less than three months are reported as cash
equivalents. Cash and cash equivalents include designated cash of $1,767,602 and $2,497,891 as of
August 31, 2011 and 2010, respectively. Designated cash consists of compensating balances on deposit
with banks for certain NCAA employee benefit plans and the Exceptional Student-Athlete Disability
Insurance Program. Money market funds managed by outside investment managers are included in
investments.

4. FAIR VALUE MEASUREMENTS OF FINANCIAL ASSETS AND LIABILITIES

ASC 820, Fair Value Measurements, establishes a framework for measuring fair value, which provides
fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The
hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or
liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurements).
The three levels of the fair value hierarchy are described below:

Level 1 — Assets or liabilities that are valued based on unadjusted quoted prices in active markets that
are accessible at measurement date.

Level 2 — Assets or liabilities that are valued based on inputs other than quoted prices that are
observable, including quoted prices for similar assets or liabilities and other pricing models (which use
observable inputs).

Level 3 — Assets or liabilities that are valued based on unobservable inputs, including the reporting
entity’s own analysis of the underlying economic data that market participants would factor into the
pricing of the asset or liability.

The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the
lowest level of any input that is significant to the fair value measurement. Valuation techniques used
maximize the use of observable inputs and minimize the use of unobservable inputs.

– 11 –

The NCAA measured the fair value of the investments as of August 31, 2011 and 2010, as follows:

Level 1 Level 2 2011 2010

Money market funds 95,538,982$ – $ 95,538,982$ 99,191,566$
Domestic pooled equity
funds – 75,172,324 75,172,324 62,885,449
International pooled
equity funds – 48,052,809 48,052,809 40,666,213
Domestic mutual funds 32,270,813 – 32,270,813 27,283,901
International mutual
funds 47,112,684 – 47,112,684 41,585,964
Global investment
funds 21,377,603 – 21,377,603 17,485,404
U.S. government
securities 22,118,673 – 22,118,673 31,279,739
Government fixed
income funds – 1,374,718 1,374,718 1,856,912
Corporate fixed
income funds 84,565,927 615,593 85,181,520 88,449,949
Fixed income securities – 41,979,916 41,979,916 40,517,091

302,984,682$ 167,195,360$ 470,180,042$ 451,202,188$

The methods used to estimate fair value may produce a fair value calculation that may not be indicative
of net realizable value or reflective of future fair values. Furthermore, while the NCAA believes its
valuation methods are appropriate and consistent with other market participants, the use of different
methodologies or assumptions to determine the fair value of certain financial instruments could result in
a different fair value measurement at the reporting date.

Investment income as of August 31, 2011 and 2010, consists of the following:

2011 2010

Interest income 7,801,112$ 7,868,194$
Realized gain (loss) — net 4,326,336 (739,480)
Unrealized gain — net 21,326,296 17,276,248

33,453,744$ 24,404,962$

5. CONTRIBUTION RECEIVABLE AND FACILITIES LEASE

The NCAA relocated its headquarters from Overland Park, Kansas to White River State Park near
downtown Indianapolis, Indiana, in July 1999. The NCAA leases its headquarters and related facilities
from the Indiana White River State Park Development Commission. The NCAA’s original lease
agreement had a term of 30 years with three 10-year renewal options and required the NCAA to make
annual lease payments in the amount of one dollar. The State of Indiana, City of Indianapolis, and other
interested parties provided funds for the construction of the NCAA’s facilities. At the inception of the
lease, the NCAA recorded temporarily restricted contribution revenue and a corresponding contribution
receivable representing the fair value of the total contributed facility lease payments less the
corresponding net present value discount.

– 12 –

In March 2010, the NCAA amended its lease agreement with the White River State Park Development
Commission to provide for a lease term of 50 years with three 10-year renewal options. In addition, the
lease provided for an approximate 3-acre parcel of real property that sets adjacent to the current NCAA
headquarters to accommodate an expansion of the headquarters. The amendment does not alter the
financial terms of the lease, and the NCAA is still required to make annual lease payments of one dollar.
As a result of the new amendment, the NCAA reassessed the fair value of the existing structure and
established the fair value of the new land. The net contribution receivable including the impact of that
revaluation is $35,514,450 at August 31, 2011.

Annual occupancy expense consists of the fair value of the current year contributed lease payment
adjusted for the straight-line effect of lease expense and revenue recognized over the lease term. As of
August 31, 2011 and 2010, the related accrued lease expense was $2,270,968 and $2,051,857,
respectively. An amount equal to occupancy expense is also reclassified from temporarily restricted net
assets to unrestricted net assets to reflect the fulfillment of the donor-imposed restrictions associated
with the original contribution. The net present value discount amortization follows the original
contribution and is recorded as temporarily restricted contribution revenue using the effective interest
method.

Contributions receivable — facilities as of August 31, 2011 and 2010, consists of the following:

2011 2010

Fair value of remaining lease payments 242,824,120$ 243,910,155$
Unamortized discount (207,309,670) (212,403,452)

Contributions receivable — facilities — net 35,514,450$ 31,506,703$

Occupancy expense for the years ended August 31, 2011 and 2010, consists of the following:

2011 2010

Fair value of lease payment 2,614,514$ 2,167,584$
Accrued lease expense adjustment 2,270,968 2,051,857

Occupancy expense 4,885,482$ 4,219,441$

– 13 –

6. GOODWILL AND INTANGIBLES

NCAA’s intangible assets consist of the following:

As of August 31, 2011 Accumulated Net Book
Cost Impairment Amortization Value

NIT
Goodwill 19,703,283$ (7,777,462)$ (4,925,821)$ 7,000,000$
Trademark 2,600,000 – (780,000) 1,820,000
Other intangibles:
Noncompete agreement 2,200,000 – (2,200,000) –
Contracts & Domain name 1,192,000 – (692,000) 500,000

Total NIT 25,695,283$ (7,777,462)$ (8,597,821)$ 9,320,000$

Arbiter
Goodwill 9,675,885$ (6,755,199)$ (1,290,118)$ 1,630,568$
Other intangibles 2,000,000 (831,004) (644,497) 524,499

Total Arbiter 11,675,885$ (7,586,203)$ (1,934,615)$ 2,155,067$

eOfficials
Goodwill 983,253$ (621,360)$ (361,893)$ – $

Total eOfficials 983,253$ (621,360)$ (361,893)$ – $

As of August 31, 2010 Accumulated Net Book
Cost Impairment Amortization Value

NIT
Goodwill 19,703,283$ – $ (4,925,821)$ 14,777,462$
Trademark 2,600,000 – (650,000) 1,950,000
Other intangibles:
Noncompete agreement 2,200,000 – (2,200,000) –
Contracts & Domain name 1,192,000 – (597,499) 594,501

Total NIT 25,695,283$ – $ (8,373,320)$ 17,321,963$

Arbiter
Goodwill 9,675,885$ – $ (1,290,118)$ 8,385,767$
Other intangibles 2,000,000 – (465,666) 1,534,334

Total Arbiter 11,675,885$ – $ (1,755,784)$ 9,920,101$

eOfficials
Goodwill 983,253$ – $ (361,893)$ 621,360$

Total eOfficials 983,253$ – $ (361,893)$ 621,360$

– 14 –

For the years ended August 31, 2011 and 2010, amortization expense related to intangible assets was
$403,332 and $2,568,021, respectively. Trademarks have useful lives of fifteen to twenty years;
contracts have useful lives of six to twelve years, and non-compete agreements have useful lives of five
to six years. Future expected amortization expense is as follows:

2012 316,833$
2013 274,333
2014 274,333
2015 274,333
2016 274,333
Thereafter 1,430,334

Total 2,844,499$

7. PROPERTIES

Properties, with the exception of construction in progress, consist of an 89,000 square foot warehouse
and distribution facility, tenant finish improvements for the NCAA headquarters, conference facilities,
furnishings, technology infrastructure, and equipment to support the NCAA national office.

In April 2010, the NCAA broke ground on a 130,000 square foot addition to the NCAA headquarters.
The expansion will include additional office space as well as conference meeting space. Construction is
expected to be completed in early 2012. As of August 31, 2011, capital costs incurred were $24,707,382.
At August 31, 2011, the NCAA had construction commitments outstanding of $10,256,464.

Properties according to their specific category as of August 31, 2011 and 2010, are as follows:

Estimated
Useful
Lives 2011 2010

Land 350,000$ 350,000$
Buildings and improvements 30 years 4,595,605 4,490,839
Leasehold improvements 10–30 years 9,440,337 9,545,104
Furniture, equipment, and fixtures 3–10 years 28,362,898 27,876,350
Construction in progress 25,887,548 6,094,845

68,636,388 48,357,138

Less accumulated depreciation and
amortization (25,838,075) (23,419,828)

Properties — net 42,798,313$ 24,937,310$

Depreciation and amortization expense was $3,109,862 and $3,610,665 for the years ended August 31,
2011 and 2010, respectively.

– 15 –

8. COMMITMENTS AND CONTINGENCIES

The NCAA acts as the governing body for college athletics. In the course of carrying out its
responsibilities, the NCAA is the target of litigation from student-athletes, coaches, universities, and the
general public. In addition, decisions made by the NCAA to enforce legislation and rules, as well as
eligibility determination for student-athletes, are often challenged by the affected parties through
lawsuits. These lawsuits range from seeking to overturn NCAA committee and legislative decisions to
seeking monetary damages and reimbursement of legal fees.

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. The NCAA has incurred attorney’s fees in the process of
defending against such matters, which are recorded in the accompanying consolidated financial
statements.

March Madness Athletic Association, LLC

The NCAA had formed the March Madness Athletic Association, LLC in February 2000 to settle a
dispute between the NCAA and the Illinois High School Association (IHSA) over ownership of the
March Madness trademark and to enhance the enforcement efforts against illegal use of the trademark.
Before that time, the IHSA and the NCAA had joint ownership of the trademark and each separately
licensed the trademark and enforced against unauthorized uses. IHSA had granted a third party a license
that provided limited use of the March Madness trademark. The third party used the license during the
Division I Men’s Basketball Championship, which the NCAA believed to be detrimental to the
trademark. In October 2010, the NCAA paid $17,200,000 to the third party in exchange for an
assignment agreement, where the third party would cease use of the March Madness trademark and
terminate its perpetual license. The NCAA has full ownership of the March Madness Athletic
Association, and the March Madness Athletic Association has control over the licensed uses of the
March Madness trademark. The NCAA recorded the full settlement as an expense in the current year.

9. BONDS PAYABLE

On May 1, 2010, the NCAA issued tax-exempt bonds of $18,750,000 with fixed interest rates ranging
from 2.00% to 5.00% and with original maturities ranging from 2011 to 2020. The bonds were issued at
a premium of $1,391,773. Interest is payable on May 1 and November 1 of each year. Proceeds from the
bond issuance are being used to partially finance the expansion of the NCAA’s headquarters.

On November 1, 2005, the NCAA issued tax-exempt bonds of $31,750,000 with fixed interest rates
ranging from 3.00% to 5.00% with original maturities ranging from 2006 to 2025. The bonds were
issued at a premium of $775,288. Interest is payable on May 1 and November 1 of each year. Proceeds
from the bond issue were used to advance refund a portion of the Series 1999 revenue bonds and fund
certain costs associated with the acquisition and settlement of the NIT.

– 16 –

Principal payments as of August 31, 2011, due over the next five years are as follows:

Fiscal Year Ending
August 31

2012 3,525,000$
2013 3,630,000
2014 3,745,000
2015 3,900,000
2016 4,070,000
Thereafter 24,580,000

43,450,000

Unamortized premium — net 1,749,726

Total bonds payable — net 45,199,726$

10. FAIR VALUE OF FINANCIAL INSTRUMENTS

The NCAA believes the carrying amounts of its cash and financial instruments (excluding long-term
debt) approximate their fair values due to the relatively short maturity of these instruments. The fair
value of long-term debt approximates the carrying value based on an estimate using the NCAA’s current
borrowing rate for similar types of borrowing arrangements.

11. TELEVISION AND MARKETING RIGHTS FEES

On April 22, 2010, the NCAA entered into a Multimedia Agreement with CBS and Turner Broadcasting
System Inc. (Turner). The Men’s Championship Agreement conveys exclusive television and other
internet and multimedia broadcast rights to Turner and CBS for 14 years in connection with the
Division I Men’s Basketball Championship. In addition, the Men’s Championship Agreement grants
Turner and CBS marketing rights with respect to all NCAA championships. The contract, which began
in fiscal year 2011 and expires in 2024, provides for multimedia and marketing rights payments of
$10.8 billion over the contract term to the NCAA. The financial obligations of the media rights contract
are guaranteed by Time Warner, Inc. Pursuant to the agreement, for the year ended August 31, 2011, the
NCAA received approximately $653,000,000 ($617,000,000 for the year ended August 31, 2010, under
the prior agreement).

The NCAA will receive estimated future television broadcast payments and licensing rights as follows:

Fiscal Year Ending
August 31

2012 666,000,000$
2013 681,000,000
2014 700,000,000
2015 720,000,000
2016 740,000,000
Thereafter 6,640,000,000

10,147,000,000$

– 17 –

On June 29, 2001, the NCAA entered into an agreement with ESPN (the ESPN agreement) that provides
ESPN exclusive television broadcast rights for the Division I Women’s Basketball championship along
with broadcast rights to other NCAA championships, excluding those to which rights have been granted
to CBS. The contract is effective from fiscal year 2003 and continues through fiscal year 2013. The
ESPN agreement is for 11 years, with the NCAA having an option to renegotiate after eight years.

The rights fee for this package is on a fixed, nonrefundable basis for the sum of $163 million over the
11-year contract. Pursuant to the ESPN agreement, for the years ended August 31, 2011 and 2010, the
NCAA received $17,900,000 and $16,800,000, respectively.

The NCAA will receive future television broadcast payments as follows:

Fiscal Year Ending
August 31

2012 18,800,000$
2013 19,100,000

37,900,000$

12. NET ASSETS

As of August 31, the NCAA has permanently restricted net assets subject to donor-imposed stipulations
that neither expire by the passage of time nor can be fulfilled or otherwise removed by the NCAA as
follows:

2011 2010

NCAA Leadership Conference 98,034$ 98,034$
Usher Scholarships 50,000 50,000

Total NCAA permanently restricted net assets 148,034$ 148,034$

As of August 31, the NCAA has temporarily restricted net assets whose use by the NCAA is subject to
donor-imposed stipulations that can be fulfilled by actions of the NCAA pursuant to those stipulations or
that expire by the passage of time as follows:

2011 2010

Facility lease 31,830,730$ 30,093,951$
Student-athlete programs and services 2,776,575 2,573,299

Total NCAA temporarily restricted net assets 34,607,305$ 32,667,250$

The NCAA Executive Committee has designated certain unrestricted net assets to fund future strategic
and operational initiatives. While designated for specific purposes, these designations may be modified
at the discretion of the NCAA Executive Committee.

– 18 –

As of August 31, 2011 and 2010, unrestricted net assets include the following designations:

2011 2010

Association-wide operating reserve 84,000,000$ 82,000,000$
Quasi-endowment reserve 243,179,197 208,602,711
Division II reserve 19,922,554 17,552,868
Division III reserve 18,370,822 16,260,812
Contracted commitments 5,070,000 1,450,000
Furniture, technology, and properties 17,490,047 18,040,230
NCAA facilities improvement reserve 20,308,892 22,731,928
Good of the Game reserve 3,473,927 3,569,732
Championships anniversaries reserve 142,238 144,913
College Football Officiating, LLC reserve 451,085 300,287
Arbiter and ESO reserve 1,571,811 7,512,603
Indiana Host Committee – 1,115,000
Available for operations 46,778,902 28,514,492

Total NCAA unrestricted net assets 460,759,475$ 407,795,576$

In April 2009, the FASB issued guidance requiring not-for-profit entities to apply the provisions of ASC
810-10-65-1, Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB
No. 51 (“ASC paragraph 810-10-65-1”). ASC paragraph 810-10-65-1 clarifies the accounting for
noncontrolling interests and establishes accounting and reporting standards for the noncontrolling
interest in a subsidiary, including classification as a component of equity. The guidance was effective for
annual financial statements beginning on or after December 15, 2009. The NCAA adopted this guidance
at the beginning of fiscal 2011 and had no material impact on the consolidated financial statements and
required disclosures.

The following represents a rollforward of noncontrolling interests in the consolidated financial
statements for fiscal 2011 and 2010:

Balance — September 1, 2009 3,887,478$
Changes in net assets:
Excess of expenses over revenue from continuing operations (588,597)

Balance — August 31, 2010 3,298,881
Changes in net assets:
Excess of expenses over revenue from continuing operations
and change in accounting method (3,001,627)

Balance — August 31, 2011 297,254$

13. PENSION PLAN AND EMPLOYEE BENEFITS

The NCAA has defined contribution plans, which include the NCAA Retirement Plan (retirement plan),
the NCAA 403(b) Savings Plan (the 403(b) plan), and the NCAA Qualified Savings Plan (the qualified
savings plan). Employees become eligible for participation in the retirement plan and the qualified
savings plan beginning in the quarter after the employee completes six months of service. Employees
become eligible to contribute to the 403(b) plan on the first day of employment.

– 19 –

The NCAA provides, through the retirement plan, a biweekly contribution to each employee’s pension
account at a rate of 10% of their annual compensation. The qualified savings plan is based on matching
provisions from the employee’s 403(b) savings plan program. The NCAA will provide matching
contributions to the plan on the employee’s behalf in an amount equal to 100% of the first 3% of
compensation contributed to the 403(b) savings plan and 50% of the next 2% of contribution contributed
to the 403(b) savings plan. A participant becomes eligible for the matching contribution only if the
participant makes a deferral contribution in the 403(b) savings plan of at least 1% of their annual
compensation. For the year ended August 31, 2011, the NCAA contributed $1,190,044 to the qualified
savings plan and $3,454,225 to the retirement plan, for total contributions of $4,644,269 compared to
total contributions of $4,500,937 for the year ended August 31, 2010.

14. SUBSEQUENT EVENTS

The NCAA has reached agreement with ESPN as of December 15, 2011 to replace the current
agreement dated June 29, 2001. The rights fees for the new agreement are fixed and nonrefundable for
the sum of $500 million over the 14-year contract (including the current year payment of $17.9 million).

The NCAA has evaluated subsequent events from the consolidated statement of financial position date
through December 22, 2011, the date at which the financial statements were issued, and determined
there are no other items to disclose.

* * * * * *

– 20 –

SUPPLEMENTARY INFORMATION

– 21 –

NATIONAL COLLEGIATE ATHLETIC ASSOCIATION
AND SUBSIDIARIES

SCHEDULE OF CONSOLIDATING STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED AUGUST 31, 2011

Eligibility College Football Indiana Host Consolidating
NCAA NIT, LLC Center, LLC Officiating, LLC Committee, LLC The Arbiter, LLC eOfficials, LLC Entries Total

REVENUES:
Television and marketing rights fees 687,040,352$ 3,274,082$ – $ – $ – $ – $ – $ – $ 690,314,434$
Championships and NIT tournaments 90,987,582 2,424,742 – – – – – – 93,412,324
Investment income, net 33,542,385 – 4,290 – – 6 159 (93,096) 33,453,744
Sales and services 5,514,788 – 12,122,337 245,045 100,000 2,836,436 1,063,339 (125,000) 21,756,945
Contributions — facilities, net 190,382 – – – – – – – 190,382
Contributions — other 6,823,352 – – – – – – – 6,823,352

Total revenues 824,098,841 5,698,824 12,126,627 245,045 100,000 2,836,442 1,063,498 (218,096) 845,951,181

EXPENSES:
Distribution to Division I members 479,180,874 831,222 – – – – – – 480,012,096
Division I championships, programs,
and NIT tournaments 67,632,647 5,361,200 – 293,803 1,213,050 – – (125,000) 74,375,700
Division II championships,
distribution, and programs 31,696,364 – – – – – – – 31,696,364
Division III championships and
programs 22,019,890 – – – – – – – 22,019,890
Association-wide programs 124,292,870 – 6,825,704 – – 1,411,163 1,632,929 90,500 134,253,166
Management and general 32,829,433 241,959 1,283,411 – – 1,277,512 167,394 (93,096) 35,706,613

Total expenses 757,652,078 6,434,381 8,109,115 293,803 1,213,050 2,688,675 1,800,323 (127,596) 778,063,829

Net increase (decrease) in
net assets before other
changes in net assets 66,446,763 (735,557) 4,017,512 (48,758) (1,113,050) 147,767 (736,825) (90,500) 67,887,352

OTHER CHANGES IN NET ASSETS —
Change in Accounting Principle – (7,777,462) – – – (7,628,532) (579,031) – (15,985,025)

Total change in net assets 66,446,763 (8,513,019) 4,017,512 (48,758) (1,113,050) (7,480,765) (1,315,856) (90,500) 51,902,327

CHANGE IN NET ASSETS ATTRIBUTED
TO NON-CONTROLLING INTEREST – – – – – 2,867,377 98,689 35,561 3,001,627

CHANGE IN NCAA NET ASSETS 66,446,763 (8,513,019) 4,017,512 (48,758) (1,113,050) (4,613,388) (1,217,167) (54,939) 54,903,954

NET ASSETS — Beginning of year 444,214,650 (877,672) 2,353,099 (245,246) 114,629 (1,263,479) (3,208,070) (477,051) 440,610,860

NET ASSETS — End of year 510,661,413$ (9,390,691)$ 6,370,611$ (294,004)$ (998,421)$ (5,876,867)$ (4,425,237)$ (531,990)$ 495,514,814$

See accompanying notes to consolidated financial statements.