January 2005 NCAA Executive Committee Supplement No. 1

MINUTES OF THE

NATIONAL COLLEGIATE ATHLETIC ASSOCIATION

EXECUTIVE COMMITTEE

NCAA National Office October 28, 2004

Indianapolis, Indiana

Participants:

Donald Beggs, Wichita State University

Clinton Bristow Jr., Alcorn State University

Carol A. Cartwright, Kent State University, chair

Suzanne Coffey, Bates College

Mary Sue Coleman, University of Michigan

Scott Cowan, Tulane University

George Hagerty, Franklin Pierce College

Walter Harrison, University of Hartford

Robert Hemenway, University of Kansas

Sydney McPhee, Middle Tennessee State University

Chris Monasch, America East Conference

Ivory Nelson, Lincoln University (Pennsylvania)

Phillip Stone, Bridgewater College (Virginia)

John A. White, University of Arkansas

Suzanne Willey, University of Indianapolis

Beth DeBauche, NCAA, recording secretary

Myles Brand, NCAA

Bernard Franklin, NCAA

G. Wayne Clough, Georgia Institute of Technology; Arthur Kirk, St. Leo University; Peter Likins, University of Arizona; and Randall Webb, Northwestern State University, were not able to attend.

Also in attendance were: Gary Brown, associate director of The NCAA News; Erik Christianson, director of public and media relations; Elsa Cole, NCAA general counsel; Dennis Cryder, senior vice-president for branding and communications; Gail Dent, associate director of public relations; Jim Isch, senior vice-president for administration/chief financial officer (CFO); Tom Jernstedt, executive vice-president; John Johnson, director of promotions and special events; Kevin Lennon, vice-president for membership services; Keith Martin, managing director of finance and operations; Wallace Renfro, senior advisor to the NCAA president; Greg Shaheen, vice-president for Division I men’s basketball and championships strategies; Ron Stratten, vice-president for education services; 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, NCAA governance director.

[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 2:35 p.m. by the chair, President Cartwright. All members were present as noted above.

1. Welcome and Announcements. President Cartwright welcomed Arthur Kirk, the new Division II Presidents Council vice-chair, to the Committee. President Kirk was unable to be at the meeting.

2. Approval of August 5, 2004, Meeting Minutes.

It was VOTED

“To approve the Executive Committee minutes of the August 5, 2004, meeting as distributed.”

3. NCAA President’s Report. Before President Brand began his report, President Cartwright called Executive Session and requested that all staff members other than those making a presentation to the Committee in Executive Session leave until the conclusion of the session. At the conclusion of the Executive Session, President Brand and selected members of his staff provided updates, discussed a series of initiatives and sought Executive Committee input.

a. CBS Sports and Bundled-Rights Agreement Update. The Executive Committee received an update on the supplemental agreement reached between the NCAA and CBS that seeks to clarify each party’s responsibilities under the agreement so as to favor each group’s strengths and areas of expertise.

b. “Due Process and the NCAA” Congressional Hearing and Media Advocacy. The Committee received an update from the senior advisor to the president regarding

the NCAA’s involvement in an oversight hearing before the U.S. House of Representatives Judiciary Committee in which the representatives sought to examine the NCAA’s enforcement process and to determine whether appropriate due process is provided. The Committee was informed that the fairness of the NCAA enforcement and student-athlete reinstatement procedures was strongly defended during the hearing. Additionally, the Committee was informed that the national office has modified its approach to dealing with media requests regarding high-profile enforcement and student-athlete reinstatement cases, from historically taking a reactive approach where member institutions carried the primary responsibility for delivering any media messages, to becoming more proactive to ensure that accurate and positive information is being disseminated regarding the work and mission of the NCAA.

c. Division I Committee on Academic Performance (CAP). The Committee received an update from the vice-president for membership services on CAP's ongoing work as Division I moves from the implementation phase of academic reform to the accountability phase. The CAP is examining Academic Progress Rate data in an effort to determine the cut point for the contemporaneous penalty.

d. Office of Diversity and Inclusiveness. The Committee was informed by the vice-president for education services that, in keeping with the NCAA’s strategic plan, a new vice-president position will be added to the national office structure to oversee the Office of Diversity and Inclusiveness. In addition to being responsible for providing more clarity to this multifaceted issue, the new vice-president will serve as a resource to both internal and external constituencies. Further, this position should help provide a needed sense of accountability in this area. [Note: Subsequent to the meeting, the name was changed to the Office of Diversity and Inclusion.]

4. NCAA Executive Committee Administrative Committee.

President Cartwright reported that the Executive Committee Administrative Committee held a September 13 teleconference to discuss a request from the Association’s legal counsel. The action of the committee on this request was presented during the litigation update.

Additionally, the Executive Committee was informed that, pursuant to its August 2004 action where it agreed to establish a subcommittee to study whether the Association should amend the infractions process and authority related to violations of NCAA Constitution, Article 2, the Administrative Committee appointed the following persons to serve on the subcommittee:

a. Phil Stone, president, Bridgewater College (Virginia), and chair, Division III Presidents Council. (subcommittee chair)

b. Sidney McPhee, president, Middle Tennessee State University, and member of the Division I Board of Directors.

c. Kathryn Martin, chancellor, University of Minnesota, Duluth, and member of the Division II Presidents Council.

The Executive Committee received a brief report from the chair of this new subcommittee in which he reported the subcommittee has requested that NCAA legal staff draft sample bylaws designed to address the specific facts of a hypothetical case to serve as a test to help determine an appropriate course of action along with a sample show-cause provision.

5. Financial Update.

The Committee was informed that with the NCAA fiscal year 2003-04 ending on August 31, 2004, the NCAA's external audit firm will complete its work by the end of November and will present its report to the Executive Committee Finance Committee in early December. It was reported that, although final closing entries have not been completed, it is known that the NCAA finished the year in the black. The Finance Committee will present a complete report at the January 2005 Executive Committee meeting.

a. Quasi-Endowment Policy.

The Executive Committee continued its discussion, which first started in January 2004 at the request of the Finance Committee, about the possibility of allocating 50 percent of the unbudgeted revenues and under spent expenses to establishing a quasi-endowment policy in an effort to help ensure the future viability of the NCAA. As part of this discussion, the committee considered feedback from the governance structure, including suggestions offered by the Division I-AA/I-AAA Presidential Advisory Group.

It was VOTED

“To establish a quasi-endowment for the future funding of student-athlete programming and the national office to ensure that membership programming, student-programming and/or current infrastructure can be supported indefinitely.”

b. Investment Subcommittee Membership.

The Committee was presented with two candidates for service on the Executive Committee Investment Subcommittee, thereby, expanding the subcommittee to add further expertise and diversity.

It was VOTED

“To approve Mary Ann Greenwood, Ph.D., a self-employed certified investment professional, and William McLean, a certified financial analyst who is vice president and chief investment officer of Northwestern University, as new members of the Investment Subcommittee.

6. NCAA Centennial Update. The Executive Committee heard an overview of the activation initiatives in preparation for the NCAA centennial celebration in 2006, which was described as a year-long celebration highlighting student-athletes.

7. Litigation Update. The Executive Committee received a report from the NCAA general counsel regarding litigation and settlement actions. During the course of the report, the NCAA general counsel requested authority to seek settlement resolution of a case within a specified financial amount.

It was VOTED

“To authorize the NCAA staff to seek settlement of a case within a specific financial amount.”

8. NCAA Division I Board of Directors and Divisions II and III Presidents Councils Reports.

a. Division I Board of Directors. The Committee received an update on the actions of the Division I Board of Directors:

(1) Update from the CAP. The Board of Directors received a report from the chair of the CAP regarding that group’s October 26-27 meeting in which he reviewed a number of concepts being discussed as that group seeks to determine the cut point for the contemporaneous penalty. The Board of Directors offered its comments to the CAP and indicated a desire to take action regarding the contemporaneous penalty at its January 2005 meeting.

(2) Summer Bridge Program Update. The Board of Directors discussed the benefits of implementing summer aid in phases to ensure there is both flexibility in application and accountability, and approved a motion that provides institutions with the autonomy to develop specific nonathletically related criteria for use in identifying prospective student-athletes who would benefit from summer school prior to their first enrollment, provided the criteria have an academic nexus and are published to provide “sunshine” in the process.

(3) Ongoing Examination of Division I-A Membership Standards. The Board of Directors asked the staff to prepare a presentation on Division I-A membership standards, including the historic data and principles used to develop the 15,000 average home game attendance requirement as well as the other criteria, and indicated a willingness to address the attendance criterion as early as the January 2005 meeting to help alleviate the apparent sense of uncertainty in the membership.

(4) Division I-AA Enhancements. The Board of Directors acknowledged that, as it continues its evaluation of Division I-A membership criteria, this evaluation must be conducted in conjunction with its consideration of the enhancement for Division I-AA. As a sign of support, the Board endorsed the Division I-AA enhancement package developed by a subcommittee of Division I-AA commissioners.

b. Division II Presidents Council. The Committee received an update on the actions of the Division II Presidents Council:

(1) Association-wide Issues.

Competitive Safeguards and Medical Aspects of Sports Committee. The Presidents Council approved the Competitive Safeguards and Medical Aspects of Sports Committee’s recommendations to:

(a) Allow members of the Drug-Education and Drug-Testing Subcommittee to visit the University of California, Los Angeles (UCLA), Olympic Drug-Testing Lab in the spring of 2005.

(b) Support funding for the homophobia in athletics initiative.

(2) Division II-Specific Action.

(a) Financial Study. The Presidents Council approved the implementation of a Division II financial study to analyze costs and expenses for institutions moving from Division II to Division I. Additionally, the Presidents Council approved being the hosts for a Division II chief executive officer (CEO) leadership retreat in Orlando, Florida, June 2005, to discuss the financial data and other important Division II issues.

(b) Best Hiring Practices Document. The Presidents Council endorsed the Best Hiring Practices document to provide a tool to institutions to assist in their diversity hiring.

(c) Elections and Ratification. The Presidents Council elected (or ratified) the following individuals to serve within the governance structure:

l Management Council Chair. Paul Engelmann, faculty athletics representative, Central Missouri State University, effective January 2005 for a one-year period. (Ratified the election.)

l Presidents Council. James Netherton, Carson-Newman College representing Region 2; David Danahar, Southwest Minnesota State University; and Antoine Garibaldi, Gannon University representing Region 3.

l Presidents Council Chair. Kathryn A. Martin, chancellor, University of Minnesota, Duluth, effective January 2005.

(d) Make-A-Wish® Campaign. The Presidents and Management Councils recommitted themselves to the Division II Student-Athlete Advisory Committee’s fundraising initiative by each pledging an additional $5,000 to the initiative for 2004-05.

(e) 2004-05 and 2005-06 Budgets. The Presidents Council approved the 2004-05 and 2005-06 biennial budgets. In addition, the Council approved a $1,000,000 reserve fund for future Division II sports festivals and a supplemental distribution of $1,000,000 to Division II schools from last year’s surplus.

c. Division III Presidents Council. The Committee received an update on the actions of the Division III Presidents Council:

(1) Association-wide Issues.

(a) Mandatory Binding Arbitration. The Presidents Council discussed the proposal to require NCAA active members, conferences and provisional or affiliate members, as a condition of membership, to be subject to mandatory binding arbitration of claims arising under federal law against the NCAA, its officers, employees and agents and agreed to withdraw the proposal for the 2005 NCAA Convention since the proposal has yet to be considered by Division I.

(b) Committee on Competitive Safeguards and Medical Aspects of Sports. The Presidents Council endorsed the recommendation for an education visit to the UCLA lab by members of the Drug-Education and Drug-Testing Subcommittee, effective spring 2005.

(2) Division III-Specific Action.

(a) Future of Division III – Phase II. The Presidents Council received initial results of a recent membership survey and requested further detailed analysis for continued review by the oversight group. The Presidents Council discussed plans to present the data and engage the membership through “virtual focus groups” in dialogue, feedback and analysis in preparation for the Division III Forum at the 2005 Convention. The governance structure will continue to provide the membership with opportunities to identify next steps for the division.

(b) 2005 NCAA Convention Update.

l College Sports Project (CSP). The Presidents Council received an update on the work of the Mellon Foundation’s CSP and approved a formal presentation from its leaders at the Division III CEO luncheon held during the 2005 Convention.