April 2003 Executive Committee minutes

MINUTES OF THE

NATIONAL COLLEGIATE ATHLETIC ASSOCIATION

EXECUTIVE COMMITTEE

NCAA National Office April 25, 2003

Indianapolis, Indiana

Participants:

Susan Bassett, William Smith College

Donald Beggs, Wichita State University

Anthony Capon, University of Pittsburgh, Johnstown

Carol A. Cartwright, Kent State University

G. Wayne Clough, Georgia Institute of Technology

Ronald Eaglin, Morehead State University

Carol Harter, University of Nevada, Las Vegas

Robert Hemenway, University of Kansas
R. Kevin LaGree, Simpson College

Mark Nordenberg, University of Pittsburgh

John McCardell Jr., Middlebury College

Christine Plonsky, University of Texas

Linwood Rose, James Madison University

Kay Schallenkamp, Emporia State University

Randall Webb, Northwestern State University

John A. White, University of Arkansas

Bridget Belgiovine, NCAA, recording secretary

Myles Brand, NCAA

James L. Isch, NCAA

Also in attendance were: Daniel Boggan, NCAA senior vice-president; Gary Brown, associate director of The NCAA News; Elsa Cole, NCAA general counsel; Danita Edwards, NCAA vice-president for public affairs; Jeff Howard, NCAA managing director of media and public affairs; Kevin Lennon, NCAA vice-president for membership services; Keith Martin, NCAA managing director of finance and business operations; Wallace Renfro, senior advisor to the NCAA president for communications; Judith Sweet, NCAA vice-president for championships/senior woman administrator; David Berst, Daniel Dutcher and Mike Racy, NCAA chiefs of staff; and Jan Brown and Beth DeBauche, NCAA assistant chiefs of staff.

Frank Brown, Columbus State University; Mary Sue Coleman, University of Michigan; and Joseph A. Steger, University of Cincinnati, were not able to attend.

[Note: These minutes contain only actions taken (formal votes or stated "sense of the meeting") in accordance with NCAA policy regarding minutes of all Association entities. While certain items on the Committee’s agenda were acted on at various times throughout the meeting, all final actions within a given topic are combined in these minutes for convenience of reference.]

The meeting was called to order at 7:34 a.m. by the chair, President Cartwright. All members were present as noted above.

1. Welcome and Announcements. President Cartwright welcomed the following new committee members: Wayne Clough, Kevin LaGree, Mark Nordenberg, Christine Plonsky and John White. President Cartwright noted that, due to the length of the agenda, the strategic planning session and members’ schedules, the agenda had been reordered.

2. Approval of January 14 and March 18, 2003, Minutes.

It was VOTED

“That the Executive Committee minutes of the January 14, 2003, meeting and March 18, 2003, teleconference be approved as distributed.”

3. NCAA Division I Board of Directors and Divisions II and III Presidents Councils. The Committee received reports from the Division I Board of Directors and the Divisions II and III Presidents Councils, which included the following items:

a. Division I Board of Directors.

(1) Approved the establishment of a student-athlete opportunity fund to provide an additional $17 million (the first year) to Division I student-athlete programming.

(2) Approved an out-of-season conditioning model for football, effective immediately.

(3) Approved legislation to increase the core-course requirements for incoming students from 14 to 16, effective 2006.

(4) Approved legislation to require Division I institutions to certify minimum grade-point-average requirements of student-athletes on a term-by-term basis.

(5) Adopted a new 12-month Division I legislative cycle.

(6) Reported divisional recommendations on Association-wide issues for Executive Committee action related to the NCAA Ad Hoc Report.

b. Division II Presidents Council.

(1) John Keating, University of Wisconsin, Parkside, was elected vice-chair of the Division II Presidents Council, effective September 1, 2003.

(2) Rose Tseng, chancellor of the University of Hawaii, Hilo, was appointed to the Division II Presidents Council, effective immediately.

(3) Agreed to sponsor legislation for the 2004 NCAA Convention to amend the Division II Philosophy Statement. Changes include adding statements that Division II is committed to promoting the academic success of its student-athletes; that participation in intercollegiate athletics benefits student-athletes and the entire campus community; and that Division II believes in preparing student-athletes to be good citizens, leaders and contributors in their communities.

(4) Discussed a concern about the increasing number of Division I transfer student-athletes who are now playing at the Division II level, especially in Division II’s high profile sports. This was highlighted during the Men’s Elite Eight, as four of the five players on the all-tournament team were Division I transfer student-athletes. The Council is concerned that the public perception is that, to be successful in Division II, a program must recruit Division I student-athletes who are not happy at their Division I institutions, or that, if a student-athlete is in trouble academically at the Division I level, he can play at the Division II level. The Council agreed to have the Academic Requirements Committee study this issue and, if necessary, recommend legislation to amend the division’s transfer legislation.

(5) Reviewed and adopted the various Association-wide and divisional recommendations in the NCAA Ad Hoc Report as directed by the Executive Committee.

c. Division III Presidents Council.

(1) Approved a more condensed 2004 Division III Convention schedule that will encourage opportunities for enhanced chief executive officer (CEO) participation and increase opportunities for membership dialogue and conference meetings.

(2) Adopted noncontroversial legislation, effective immediately, to establish a Division III football preseason practice model that includes a five-day acclimatization period, recovery period, including walk-throughs only on single-session days, and specific time limitations, similar to Divisions I and II, with a maximum of 25 preseason practice opportunities.

(3) Reviewed the results of a membership survey and focus group meetings related to the future of Division III. Charged the Joint Subcommittee Oversight Group on the Future of Division III and its subgroups with considering the development of legislative initiatives suggested by the survey and focus groups. Acknowledged the need for future strategic discussions regarding the governance of the division, given its growing size and diversity.

It was VOTED:

“To receive the divisional recommendations on Association-wide issues identified in the NCAA Ad Hoc Report and refer responses on ways to strengthen the NCAA Convention to the NCAA Convention management staff; responses on ways to continue to advocate for equal opportunity and improve communications and education shall be referred to the Association-wide strategic planning process; and responses on improving the effectiveness of the Executive Committee to President Brand and staff.

“To recommend continued action by each division on its specific areas identified in the NCAA Ad Hoc Review Report.”

4. NCAA President’s Report. President Brand discussed a series of initiatives and sought Executive Committee input.

a. First 100 Days. President Brand provided an update on his first 100 days of tenure, noting specifically:

(1) Traveling to several meetings with coaches associations, athletics administrative groups, higher education associations and the media.

(2) Instituted the NCAA president’s letter.

(3) Key issues/events:

(a) Title IX.

(b) Men’s and Women’s Final Four events.

(4) NCAA office:

(a) Reorganization of the national office staff in order to best position the NCAA staff leadership to undertake action resulting from the strategic planning process.

(b) Resignation of Daniel Boggan, NCAA senior vice-president, effective August 2003.

(d) Appointment of Jeff Howard, managing director of public and media relations.

Lastly, President Brand noted that the NCAA staff will continue to focus on the Association’s core mission and services, specifically related to NCAA policies and procedures that impact student-athlete welfare and to work on the Association-wide strategic planning.

b. Strategic Plan. President Brand informed the Committee that the NCAA had begun the process of strategic long-range planning that will guide the development of a new strategic long-range vision for the Association and an ongoing process for planning and thinking strategically throughout the organization. The process is being developed with the assistance of Tecker Consultants of Trenton, New Jersey. President Brand introduced Glenn Tecker, president and CEO. Mr. Tecker provided an overview of the planning process, grounded in an approach that guides decisions about strategy in a framework of “Four Planning Horizons.” The concept involves crafting a comprehensive strategic direction based on the balance between what must not change (timeless principles of the organization’s core purpose and core values) and the future vision that stimulates change (what the organization seeks to be or become). He identified the 13-step planning process used to gather extensive data from a wide range of NCAA constituents. Data-gathering will be done through a variety of methods, including in-person facilitated strategic thinking sessions; a Web-based survey followed by a second series of in-person facilitated dialogue sessions on emerging themes; and assessment and validation of strategic directions. The data collection will culminate with the development of a draft strategic plan to be presented at the 2004 Convention. Glenn Tecker also engaged the committee in discussions about the planning process including emerging themes, conditions, trends and assumptions raised during recent constituent group meetings. It also was noted that the planning process and all data will be posted on the NCAA Web site.

It was VOTED:

“To approve the 13-step strategic process as defined in the flowchart, with a recommendation for new approaches or opportunity for maximum involvement of CEOs be pursued.”

5. Financial Matters.

a. Budget to Actual. The Committee reviewed a report of the Association’s financial activity for the first two quarters of the fiscal year.

(1) Revenue. It was noted that the most significant change is the result of the Association receiving 30 percent of its revenue from the CBS Sports agreement in the first half of the year, as well as investment returns. The investment returns are higher in the current year due to the increased cash flow from the CBS contract and the performance by the Association’s investment managers of PIMCO and MDL Capital.

(2) Expenses. Division I expenses are within the budget parameters, noting that the $15 million supplemental distribution from the 2002 surplus was made to Division I in the second quarter. Divisions II and III year-to-date expenses are within budget parameters.

b. Finance Committee Report.

(1) Fiscal Year 2003-04 budget allocations.

(a) The Committee reviewed the budget allocation recommendations for fiscal year 2003-04, the second year of the biennial budget.

— Revenue is expected to increase approximately 7.8 percent or $33 million primarily from the CBS Sports contract ($30 million), with the remaining $3 million from NCAA Championships; licensing; investments; and sales and services.

— The Division I distribution is expected to increase 7.8 percent or $19.2 million next year. Division I championships and other programs will increase $1.58 million or three percent based on the new initiatives approved in the prior year.

— Divisions II and III allocations will increase 7.1 percent or $1.3 million and $963,000 respectively based on constitutional guarantees.

— Approximately $4.4 million will be funded from the assets transferred from the former NCAA Foundation. The scholarships and leadership program costs will be absorbed by the NCAA budget over the next three to five years.

— Last year, the Executive Committee approved an additional $165,000 of Association-wide programs as part of the two-year biennial budget cycle.

— Based on the projected revenues and the actions from last year, approximately $7.6 million remains to fund base budget adjustments for 2003-04.

It was VOTED

“To approve the base budget adjustments for 2003-04 as recommended.”

(b) Fiscal Year 2003-04 Base Budget Adjustments. The Committee reviewed the base budget recommendations for the second year of the biennial budget.

— A two percent adjustment for Division I championships to cover increased costs in travel and game expenses.

— A 3.5 percent salary adjustment for staff merit increases. The salary increase recommendation was reviewed by the Finance Committee against a series of salary benchmarks approved at the January meeting.

— A $2.5 million adjustment for the Association’s insurance programs. At the last meeting, the Executive Committee approved one-time adjustment of $2.0 million from the 2002 surplus to address Division I Men’s Basketball cancellation. The proposed base budget adjustments would fund the increases on a permanent basis for the Men’s Final Four event cancellation and implement the Insurance Task Force’s recommendations of increasing the student-athlete death benefit from $10,000 to $25,000 and increasing the general liability limits from $25 million to $40 million.

— A $555,000 adjustment to fund increases in contracted and base services for 2003-04. Most of the increases are guaranteed by contract or are necessary to carry out the current level of services.

— A $750,000 adjustment to replace funding for the leadership and scholarship programs that historically have been funded by the NCAA Foundation. The allotted funds represent about one-third of the required resources.

— The remaining $1.965 million will be allocated to the NCAA president for priorities identified in the strategic plan once it is complete, as well as other initiatives that have been identified by the president, including:

l Strategic planning process ($200,000).

l Diversity hiring partnership with the Black Coaches Association for Division I football ($180,000).

l Executive position and operating costs ($235,000).

l Automobile benefit adjustment ($350,000).

l Strategic initiatives identified by the planning process ($1,000,000) of which up to $250,000 may be allocated to reorganization and equity adjustments.

It was VOTED

“To approve the fiscal year 2003-04 base budget adjustments.”

(2) Authority to Engage Auditors. The Executive Committee Finance Committee noted that, due to its expanded responsibilities, it requested delegation of authority to engage auditors. The Finance Committee will assume responsibility for engaging the auditors, approving the scope of the audit work and reviewing the audit report with the auditors following the completion of their work.

It was VOTED

“To delegate authority to the Executive Committee Finance Committee to engage financial auditors and to develop, in conjunction with staff, the scope of the audit work.”

(3) Investment Subcommittee Appointments. At its January meeting, the Committee expanded the Finance Committee’s responsibilities to include investments. A subcommittee of the Finance Committee will be formed to include investment expertise.

It was VOTED

“To approve the appointments of Anne Welch McNulty, retired managing director of Goldman Sachs; Robert Eubanks, Franklin Street Investors; James Nichols, treasurer, Ohio State University; Christopher Williams, the Williams Capital Group L.P. and Williams Capital Management LLC; and John White, chair of the Finance Committee, as members of the investment subcommittee.”

(4) Multiple Employer Welfare Arrangements (MEWA). The Committee received an update on the MEWA. At its January meeting, the Committee voted to support the recommendation to discontinue the NCAA’s MEWA with conferences and other affiliated members and request staff to continue its educational and transition efforts with the affected parties before final approval. The staff work has been completed.

It was VOTED

“To discontinue the current multiple employer welfare arrangements and no longer extend coverage to conferences and other affiliated members, effective November 1, 2003.”

6. NCAA President’s Report (continued). President Brand discussed a series of initiatives and sought Executive Committee input.

a. CEO Orientation Program. President Brand reviewed a draft plan to create a voluntary program for newly appointed CEOs designed to provide valuable NCAA-related information to familiarize them with the NCAA and provide them with resources and information that may help them assert appropriate institutional control over their athletics programs. In addition, the program will provide an opportunity to emphasize the importance of presidential participation in the NCAA and garner support for the NCAA’s advocacy and reform agenda.

b. International Competition/Educational Programs Recommendation. President Brand noted that the Ad Hoc Subcommittee on International Competition/Educational programs concluded its work to review all educational and athletics exchange initiatives proposed by foreign governments. The Committee noted that individual NCAA institutions and conferences would continue to engage in foreign tours consistent with NCAA bylaws.

It was VOTED:

(1) “To support ongoing efforts regarding international television and licensing initiatives pursuant to the business powers delegated to the NCAA president; and

(2) “To refer the NCAA role in international matters into the Association’s strategic planning process.”

7. NCAA Executive Committee Subcommittee on Gender and Diversity Issues. The Committee received a report of the discussions and actions of the subcommittee.

a. American Indian mascot. At its November 2002 meeting, the Executive Committee received a report on the use of American Indian Mascots in Intercollegiate Athletics submitted by the Minority Opportunities and Interests Committee (MOIC). The Committee referred that report to the divisional governance structures and instructed the groups to report back. The Committee also recommended that the report be distributed to NCAA institutions that currently use American Indian mascots, nicknames and logos to solicit their input.

It was noted that 12 of 31 institutions currently using American Indian mascots, logos and nicknames responded to the NCAA request for input. Nine of the 12 institutions supported some type of NCAA-directed institutional analysis; two strongly opposed the recommendations, noting they represent an unreasonable interference by the NCAA in institutional issues.

The Committee reviewed a culmination of divisional and membership input in response to its request. One recommendation with consensus support in all three divisions is that all member institutions currently using Indian mascots, nicknames and logos complete a self-analysis.

b. Confederate Battle Flag. The Committee received an update on the status of activities in the state of Georgia.

It was VOTED:

“To refer the divisional input back to the Executive Committee subcommittee for its recommendation for Association-wide action on the American Indian Mascot in August 2003, and to direct the subcommittee to consider the implications related to the Confederate battle flag recommendations, also due in August.”

The Committee noted that, although both issues are being addressed by the subcommittee, they are seen as two distinct issues.

8. Committee on Competitive Safeguards and Medical Aspects of Sports. Pursuant to Executive Committee authority, annual reports and changes to the drug-testing programs must be approved.

It was VOTED:

a. “To revise the drug-testing consent form to add language that allows the NCAA to use drug-testing samples in research, provided the sample’s identity remains anonymous; and

b. “To accept the 2002 annual report.”

9. Association-wide Committee Meeting Frequency. The Committee reviewed the 2003-04 meeting schedule for all Association-wide committees.

It was VOTED:

a. “To grant the Committee on Women’s Athletics, the Minority Opportunities and Interest Committee and the Postgraduate Scholarship Committee waivers of NCAA Bylaw 31.7.2.1.4 to permit three in-person meetings for fiscal year 2003-04, consistent with past practices.

b. “Future waiver requests should be reviewed consistent with the biennial budget process (for a two-year period).”

10. Title IX Update. Judy Sweet provided an update on the status of the 23 recommendations presented to Secretary Paige, U.S. Department of Education, as a result of the work of the Commission on Opportunity in Athletics. The Committee noted its previous action to support the current law.

It was VOTED:

“To endorse a letter to Secretary Paige to express continued support for the current law.”

11. Division I Incentive and Disincentives Update. President Hemenway provided the Committee with an update on the status of activity as part of the Division I academic reform imitative, including the incentive and disincentives work.

12. Litigation Update. The Committee received a report from the NCAA general counsel regarding current litigation and settlement actions.