MINUTES OF THE
NATIONAL COLLEGIATE ATHLETIC ASSOCIATION
EXECUTIVE COMMITTEE
Gaylord Opryland Resort January 12, 2004
Nashville, Tennessee
Participants:
Donald Beggs, Wichita State University
Carol A. Cartwright, Kent State University
G. Wayne Clough, Georgia Institute of Technology
Suzanne Coffey, Bates College
Mary Sue Coleman, University of Michigan
Ronald Eaglin, Morehead State University
Carol Harter, University of Nevada, Las Vegas
Robert Hemenway, University of Kansas
John P. Keating, University of Wisconsin, Parkside
Peter Likins, University of Arizona
John McCardell Jr., Middlebury College
Mark Nordenberg, University of Pittsburgh
Christine Plonsky, University of Texas
Linwood Rose, James Madison University
Kay Schallenkamp, Emporia State University
Phillip Stone, Bridgewater College (Virginia)
John A. White, University of Arkansas
Suzanne Willey, University of Indianapolis
Myles Brand, NCAA
Jan A. Brown, NCAA, recording secretary
Bernard Franklin, NCAA
Randall Webb, Northwestern State University was not able to attend.
Also in attendance were: Chris Monasch, America East Conference; Gary Brown, associate director of The NCAA News; Elsa Cole, NCAA general counsel; Dennis Cryder, senior vice-president for branding, broadcasting and communications; Danita Edwards, vice-president for public affairs; Jeff Howard, managing director of public and media relations; Jim Isch, senior vice-president for finance and operations; John Johnson, director of branding, broadcasting and communications; Keith Martin, managing director of finance and business operations; Wallace Renfro, senior advisor to the NCAA president for communications; Greg Shaheen, vice-president for men's basketball; Judith Sweet, senior vice-president for championships and education services/senior woman administrator; David Berst, Daniel Dutcher and Mike Racy, NCAA governance vice-presidents; and Bridget Belgiovine and Beth DeBauche, NCAA governance directors.
[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 5:30 p.m. by the chair, President Cartwright. All members were present as noted above.
1. Welcome and Announcements. President Cartwright welcomed Suzanne Willey and Suzanne Coffey, the new chairs of the Divisions II and III Management Councils.
The Executive Committee went into Executive Session at 5:37 p.m. to discuss a less bureaucratic more responsive NCAA. The Executive Session ended at 6:20 p.m.
2. Approval of October 31, 2003, meeting minutes.
It was VOTED
"To approve the Executive Committee minutes of the October 31, 2003, meeting as distributed."
3. NCAA President's Report. President Brand provided updates, discussed a series of initiatives and sought Executive Committee input.
a. Strategic Planning. President Brand recapped the work done to date and noted the strategic plan represented a multifarious collection of widespread discussion and debate within the membership and that the national office staff will work to incorporate recommendations and suggestions made at the 2004 Convention. President Brand indicated that it was time to finalize this process by developing a plan for approval by the Executive Committee and requested that the Executive Committee approve in principle the plan, which will allow the staff to place the plan in final form. The Executive Committee will have one more opportunity to review the plan at the April meeting and accompanying the plan will be a set of "draft" strategic initiatives for implementing the plan.
It was VOTED
"To endorse in general principle the draft of the Association's Strategic Plan and to authorize the NCAA staff to prepare a "final" version of the plan for adoption at our April meeting along with a draft of strategic initiatives and measurable objectives for implementing the plan."
b. Less Bureaucratic, More Responsive NCAA. The Executive Committee passed the following resolution:
"That the chair of the Executive Committee appoint a subcommittee of the Executive Committee (inclusive representation from the three governance divisions) to review this issue including the role of the president and the current committee structure and report to the Executive Committee at its April meeting."
c. Enforcement Enhancement. President Brand provided an update regarding the enhancements to the enforcement staff. President Brand noted that, although the number of major infractions cases has remained constant over the past decade, the complexity of these cases has increased, which has impacted the timeframe in which the cases have been processed. In order to reduce the time it takes to process a case, two new enforcement representatives have been hired, and it is anticipated that the staff will increase by another four or five representatives in the next year. This increase will be achieved within the current budget parameters.
d. Risk Management Protection for Major Events. The Executive Committee received an update regarding the crisis management plan for specified NCAA events. Included in the plan is the cost of appropriate cancellation insurance coverage to cover the cancellation of the Men's Division I Basketball Championship due to unforeseen circumstances. For the past two years, the national office staff has been investigating the possibility of designating a back-up venue should a disruption arise with the site for either the Men's or Women's Final Four. This would allow the NCAA to obtain a favorable cancellation insurance policy and allow continuity of operations in the event of such a disruption. The president would be authorized to enter into an agreement for a back-up venue.
It was VOTED
"To direct the president to finalize the agreement to secure a back-up venue for the Men's and Women's Final Four."
4. 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) Academic Reform. Reviewed Phase Three of the Incentives/Disincentives Reform Package.
(2) Legislative Items that Required Action by the Board. Approved several legislative items, including amending the required number of football games played in I-A against I-A opponents from five games to four.
(3) "Bridge" Programs. Requested that the Division I Management Council reconsider the issue of "Bridge" programs and whether financial aid should be awarded to student-athletes in "Bridge" programs.
(4) New Board Member. Appointed John Welty, California State University, Fresno, to the Board.
(5) New Executive Committee Member. Appointed Peter Likins, University of Arizona, to the Executive Committee.
b. Division II Presidents Council.
(1) 2004 NCAA Convention. Division II completed another successful Convention. All of the 47 Presidents Council-sponsored proposals were overwhelmingly adopted by the division's membership. These proposals include legislation that strengthens the division's progress-toward-degree requirements by requiring a student-athlete to complete at least six credit hours the preceding regular academic term to be eligible to compete. This legislation passed with 80 percent of the membership's approval. The membership also passed a resolution that will allow for the development of a project team to study issues concerning criteria for selection of participants for championships.
(2) New Council Member. Appointed Eddie Moore, Virginia State University, to the Council.
c. Division III Presidents Council.
(1) 2004 NCAA Convention.
(a) Division III adopted eight substantive proposals to reform Division III. Included in the successful reform package was legislation to require each institution to require a financial aid audit, the elimination of allowing redshirting, and the reduction of the nontraditional playing and practice season.
(b) Division III adopted a resolution to study the next stage of Division III membership requirements.
(2) Chair appointment. Elected Phillip Stone, Bridgewater College (Virginia), as the next chair of the Council.
(3) New council members. Appointed Peggy Williams, Ithaca College, and David Beckley, Rust College, to the Council.
5. Playing-Rules Oversight. It was noted that the Playing-Rules Oversight Panel was established to advise NCAA staff on playing-rules issues and resolve divisional differences for rules that must be common to all. The panel recently met to resolve divisional differences regarding the Men's and Women's Basketball Rules Committees' recommendation to extend the three-point line. Divisions I and II recommended its adoption, and Division III did not support the change. The Executive Committee noted that the panel recommended that the request be denied based on review of the issue that extending the three-point line was linked to changing the free-throw lane to a trapezoid (which was rejected in all three divisions).
It was VOTED
"To approve the Playing-Rules Oversight Panel recommendation to deny the Men's and Women's Basketball Rules Committees' recommendation to extend the basketball three-point line for the 2004-05 season."
6. NCAA Executive Committee Finance Committee report.
a. First quarter budget-to-actual. The Committee reviewed the financial schedules for the first quarter 2003-04 budget-to-actual.
b. Finance Committee report.
(1) Fiscal year 2002-03 audited statements. The Executive Committee reviewed the audited financial statements prepared by the audit firm of Deloitte and Touche. Deloitte and Touche issued an unqualified opinion for the fiscal year September 1, 2002, through August 31, 2003, financial statements. The Committee also reviewed the Association's reserves.
It was VOTED
"To approve the audited FY 2002-03 financial statements."
(2) Fiscal year 2002-03 Budget-to-Actual Year-End Report. The Committee reviewed the FY 2002-03 budget-to-actual year-end report.
(3) Reserve policies. The Committee also reviewed the Association's reserve policies. The policies for Association-wide unrestricted reserves primarily consist of three funds:
(a) Association-wide reserve ($51 million). This reserve is established at one third of the operating budget less revenue distributions.
(b) Working capital reserve ($45 million). This reserve is established to provide operating funds until the major source of the organization's revenue is collected in April. It is funded at 10 percent of total revenue.
(c) Office building improvement reserve ($2.9 million). This reserve is established to meet the facility repair and renewal needs of the national office, warehouse and Hall of Champions. It is allocated $300,000 per year.
It was VOTED
"To approve the continuation of the current reserve policies."
(4) Financial recovery plan. The Executive Committee reviewed the three-year financial recovery plan for the Division I Men's Basketball Championship. The plan provides direction should, for any unforeseen reason, the Division I Men's Basketball Championship not be held. Since the disruption of the Division I Men's Basketball Championship could result in the loss of $409 million or approximately 90 percent of the Association's revenue, a plan has been developed to serve as a template for recovery. This plan also will allow staff to secure more favorable event cancellation insurance.
It was VOTED
"To approve the financial recovery plan and direct the staff to secure up to $125 million of event cancellation insurance for the 2004 Men's Final Four and to include limited terrorism coverage."
(5) Recommended uses of net unallocated assets. The Executive Committee reviewed the recommended uses of net unallocated assets.
It was VOTED
"To approve the following uses as recommended:
(a) $16 million distributed to Division I institutions in accordance with the FY 2002-03 revenue distribution formulas.
(b) $1 million allocated to the 2006 centennial celebration and an additional $750,000 per year for the next two years from surplus funds, if available, for a total of $2.5 million for the centennial celebration.
(c) $300,000 allocated to celebrate championship anniversaries and an additional $450,000 from FY 2003-04 surplus funds, if available, for a total of $750,000.
(d) $1.4 million allocated to student-athlete programs as part of an ongoing effort to gradually transfer the budget obligations from the former NCAA Foundation to the NCAA.
(e) $2.2 million allocated to fund strategic initiatives as identified in the strategic plan.
(f) $600,000 allocated to the NCAA health plan reserve, to rebuild reserves that have been depleted because of the transition of conference offices from the NCAA self-funded health plan.
(g) $1 million allocated to the financial recovery plan to be used for the purchase of insurance or allocated to reserves.
(h) $500,000 allocated to technology, so that historical information can be digitized and made available to the membership.
(i) $500,000 allocated to the purchase and operating costs for a 1/16th of a share of an aircraft.
(6) Centennial Celebration. The Executive Committee reviewed the centennial celebration and championships anniversaries proposals. The Executive Committee previously took action to approve allocating $2.5 million to the 2006 centennial celebration and $750,000 for the championships anniversaries (See item 6.b.(5) (b) and (c)). The Executive Committee noted that there was a request to establish a centennial and championships committee comprised of two chief executive officers from each division. It was agreed not to establish a committee and instead recommended that the Executive Committee be kept apprised of the progress in these areas.
(7) Championship Anniversaries. (See above item.)
(8) Fiscal Year 2004-05 and 2005-06 Tentative Budget Allocations. The Executive Committee reviewed the projected revenue and expenditure allocations for the upcoming biennial budget process. The projected allocations provide various budget committees and cabinets with an estimate of the available dollars for Association-wide and divisional allocations. For the first and second years of the biennium, approximately $2.25 and $2.1 million will be available for Association-wide and presidential initiatives.
It was VOTED
"To approve the FY 2004-05 and 2005-06 budget allocations as recommended."
(9) NCAA Quasi Endowment. The Executive Committee discussed the possibility of creating a quasi endowment for student-athlete programming or for the on-going support of the national office, or other purposes designated by the Executive Committee. The Executive Committee supported this concept and asked the staff to research the possibility and to provide a proposed policy for Executive Committee consideration in April.
c. Investment subcommittee report. The Executive Committee received an update regarding the selection of an investment consultant.
7. NCAA Executive Committee Subcommittee on Gender and Diversity Issues. The committee received a report of the discussions and actions of the subcommittee, noting:
a. The subcommittee reviewed the Gender and Diversity Issues Audit Report. The subcommittee also received information regarding race and gender demographic data for each of the various staff positions and levels at the national office.
b. The subcommittee was provided with an update regarding American Indian mascots, including the Executive Committee's August 8, 2003, action requesting that institutions with American Indian mascots complete a self-analysis checklist by September
2005. The subcommittee approved (with changes) a letter that will inform institutions of a timetable for submitting the self-analysis checklist. The subcommittee directed staff to identify the criteria that institutions will use for evaluation prior to sending the letter.
c. The subcommittee received an update on the inaugural NCAA Football Coaches Academy.
d. The subcommittee expressed support for the joint MOIC and CWA budget request, which included $500,000 for the development of coaches.
8. Litigation Update. The Committee received a report from the NCAA general counsel regarding litigation and settlement actions.
9. Governmental Relations Update. The Committee reviewed an update regarding governmental issues.
10. Future Meetings. The Committee reviewed its future meetings, noting that that all future Executive Committee meetings will be held immediately following divisional presidential meetings.
a. April 29, 2004: Indianapolis, Indiana.
b. August 5, 2004: Indianapolis, Indiana.
c. October 28, 2004: Indianapolis, Indiana
d. January 10, 2005: Dallas, Texas.
11. Adjournment. President Cartwright adjourned the meeting at 8:35 p.m.
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