October 2005 NCAA Executive Committee Supplement No. 1

MINUTES OF THE

NATIONAL COLLEGIATE ATHLETIC ASSOCIATION

EXECUTIVE COMMITTEE

NCAA National Office August 4, 2005

Indianapolis, Indiana

Participants:

Michael Adams, University of Georgia

Philip Austin, University of Connecticut

Clinton Bristow Jr., Alcorn State University

G. Wayne Clough, Georgia Institute of Technology

Daniel Curran, University of Dayton

Paul Engelmann, Central Missouri State University

Robert Fisher, Belmont University

Walter Harrison, University of Hartford, chair

Martin Jischke, Purdue University

Arthur Kirk, St. Leo University

Peter Likins, University of Arizona

Kathryn Martin, University of Minnesota, Duluth

Sydney McPhee, Middle Tennessee State University

Michael Miranda, Plattsburgh State University of New York

Ivory Nelson, Lincoln University (Pennsylvania)

Phillip Stone, Bridgewater College (Virginia)

Ron Wellman, Wake Forest University

John Welty, Fresno State University

Delise O'Meally, NCAA, recording secretary

Myles Brand, NCAA

Bernard Franklin, NCAA

Shirley Raines, University of Memphis, was unable to participate.

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 and media relations; Jim Isch, senior vice-president for administration/chief financial officer; Tom Jernstedt, executive vice-president; John Johnson, director of promotions and special events; Corey Jackson, assistant director of membership services; 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; Judith Sweet, senior vice-president for championships and education services/senior woman administrator (SWA); Charlotte Westerhaus, vice-president for diversity and inclusion; Bob Williams, managing director of public and media relations; David Berst, Daniel Dutcher and Mike Racy, NCAA governance vice-presidents; and Bridget Belgiovine, Beth DeBauche and Terri Steeb, 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 4 p.m. by the chair, President Harrison. All members were present as noted above.

1. Welcome and announcements. Harrison welcomed all attendees. He specifically welcomed Kathryn Martin, chancellor of the University of Minnesota, Duluth, and chair of the Division II Presidents Council. Also, he welcomed the new members from the Division I Board of Directors: Mike Adams, University of Georgia; Dan Curran, University of Dayton; Robert Fisher, Belmont University; Martin Jischke, Purdue University; and John Welty, Fresno State University. President Harrison noted that President Shirley Raines, from the University of Memphis, was unable to participate in the meeting.

2. Approval of April 28, 2005, meeting minutes.

It was VOTED

“To approve the Executive Committee minutes of the April 28, 2005, meeting as distributed.”

3. NCAA President’s report. Brand provided updates, discussed a series of initiatives and sought Executive Committee input.

a. Presidential Task Force on the Future of Division I Intercollegiate Athletics.

The Committee received an update on the progress of the presidential task force on the future of Division I intercollegiate athletics. Brand noted that the task force recently met in Tucson, Arizona, and is making progress on its agenda.

b. NCAA alcohol policy.

The Committee reviewed the Association’s alcohol policy and encouraged NCAA members to use the Association’s policy as a guideline for reviewing their campus policies.

It was VOTED:

“That the following Resolution shall be adopted, which provides:

“Whereas a fundamental 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; and

“Whereas the illegal use and abuse of alcohol is contrary to the mission of the NCAA and destroys such fundamental values as respect, fairness, civility, honesty and responsibility; and

“Whereas the NCAA takes seriously its responsibility to present participation in sports as a positive experience for student-athletes and fans alike, and this responsibility includes educating student-athletes about alcohol abuses and providing positive messaging related to the legal use of alcohol; and

“Whereas the Association recognizes the connection made by the general public and the media between sports and alcohol use, and restricts alcohol advertising and the sale of alcohol beverages at the site of NCAA championship events; and

“Whereas the NCAA supports institutional autonomy and campus responsibility as it relates to managing the use of alcohol and other substances on campus but recognizes the need for a consistent message as it relates to alcohol advertising and sales during all collegiate events.

“Now, therefore, be it Resolved that NCAA members shall be encouraged to:

· “Prohibit the sale of alcoholic beverages during all preseason, regular season, conference and postseason intercollegiate events. [Alcoholic beverages should not be sold or otherwise made available for public consumption in the athletics facility during intercollegiate athletics events.]

· “Promote only the legal and responsible use of alcohol by fans outside the stadium or arena (e.g., tailgating). [To the extent that an institution can preclude the sale of alcohol outside the stadium or arena, those efforts should be made. When such restrictions are not feasible, an institution should visibly promote the legal and responsible use of alcohol for all fans associated with the event.]

· “Prohibit on-site alcohol advertising during all preseason, regular season, conference and postseason intercollegiate events. [Except when expressly prohibited by prior contract, institutions should preclude advertising, banners, and signs of displays for liquor, beer (including nonalcoholic beer) or wine products. Any permanently affixed or leased advertising, banners, signs or displays in the facility, should be covered during the event.]

· “Prohibit media advertising of alcoholic beverages that exceed six percent alcohol by volume. [Immediately prior to, during and subsequent to televised competition, institutions should preclude media advertising of alcoholic beverages that exceed six percent alcohol by volume.]

· “Limit advertising of malt beverages, beer and wine products that do not exceed six percent alcohol by volume and include content that emphasizes legal use of alcohol. These advertisements could include tag lines such as “Drink Responsibly” and “Be Legal.” [Such advertisements should not compose more than 14 percent of the space in any game publications; not more than 60 seconds per hour of any telecast or broadcast or not more than one hundred twenty (120) seconds total in any telecast or broadcast. Any such content should include an appropriate focus on legal and responsible use of alcohol.]

· “Provide programs and resources for education, prevention and treatment of alcohol abuse.”

c. World University Games.

Brand provided information related to possible NCAA involvement with the World University Games. He noted that the United States has participated in the World University Games for many years, but its teams have operated on a minimal budget supported by the U.S. Olympic Committee (USOC) and National Governing Bodies. Brand also noted that these games now serve, in part, as a replacement event for those university/college student athletes who no longer have a reasonable opportunity to participate in the Olympic Games, having been replaced by American professional athletes. The NCAA has been encouraged by the president of the International University Sports Federation to play a role, or possibly, assuming responsibility for the United States participation in the games. Corporate sponsorship may be an option.

d. NCAA committee expenditures.

The Committee received a report from an internal project team charged with reviewing the NCAA committee structure and recommending changes that would result in the reduction in committee size, overall budgetary reduction and an increase in the use of technology to conduct committee business. The project team recommended a multilayered approach to achieve the goals set forth by the Executive Committee. First, the project team recommended a reduction in the frequency of in-person committee meetings; an increase in the percentage of meetings held at the NCAA national office; and an overall 25 percent reduction in the committee budget. Second, the group recommended the development of a standard of review for committee membership to determine whether the size of each committee is appropriate or whether a reduction in membership would enhance overall efficiency. Third, the group recommended a comprehensive review of the legislative cycle to determine whether possible modifications may further reduce committee expenditures; alleviate bureaucratic inefficiencies; and streamline the NCAA committee structure and governance processes. Finally, the group recommended an ongoing review to assess the successful implementation of suggested modifications and recommend further reductions as appropriate.

It was VOTED:

“To accept the recommendations as presented.”

e. Corporate structure.

President Brand briefly discussed the possibility of establishing a corporate entity to hold and manage some of the business aspects of the organization. An ongoing issue of concern for the Association is its reliance on a single source of revenue. Brand noted that a quasi-endowment has been started, but additional steps need to be taken. In this regard, the national office is undertaking an outside study to determine the most appropriate course of action. The Committee will review a more detailed proposal on this issue during its October 2005 meeting.

4. NCAA Executive Committee Finance Committee report.

a. FY 2004-05 third quarter budget to actual. The Committee received a report of the Association’s financial activity for the third quarter of FY 2003-04, noting that results are within budget parameters. The Association received 100 percent of the rights fees from CBS sports and has met 99 percent of its revenue projections for the year as of the third quarter. The Association-wide expenses of approximately $72 million are within the budget parameters. It was noted that legal expenses are trending upward based on the active legal cases this past year.

The Audit Committee will review audited financial results for the 2004-05 fiscal year at its December meeting, and the Executive Committee will review audited statements in January 2005.

b. FY 2006-07 and FY 2007-08 tentative budget allocations and timeline. The Committee reviewed a summary of the revenues and expenditures for the upcoming biennium.

Estimated revenues will be approximately $560.5 million and $602.2 million for the next two years. This represents a 7.4 percent annual increase.

It was noted that the NCAA FY 2006-07 and FY 2007-08 biennial budget process timeline outlines the budget process for the next two budget years. Final approval for the FY 2006-07 budget will occur at the April 2006 meeting.

It was VOTED

“To approve the tentative budget allocations for FY 2006-07 and FY 2007-08.”

5. Administrative Committee of the Executive Committee report.

a. Executive compensation charter. Harrison informed the Committee that Mercer Human Resource Consulting recommends that the NCAA formalize its practices with regard to the Administrative Committee’s role and responsibilities for executive compensation. While all the duties and responsibilities outlined in the charter have been performed by past committees, the charter provides additional documentation to ensure compliance with the intermediate sanction law enacted in 1996. The federal law is intended to curb the flow of unreasonable compensation and improper benefits by tax-exempt organizations to their top management and influential insiders. Mercer believes the NCAA can strengthen its position with the ratification of the charter under Supplement No. 7.

In previous years, there has been a compensation committee; however, beginning this year, the assignment will be handled by the Administrative Committee of the Executive Committee. The specific roles and responsibilities are listed on page two of the charter. The committee will meet once a year on compensation issues unless other meetings become necessary.

It was VOTED

“To approve the executive compensation charter.”

b. Executive session. The Committee convened an executive session and voted to extend the contract of Brand by two years through December 2009. Thereafter, the Committee will consider annual two-year extensions in advance for the indefinite future.

6. NCAA Executive Committee Subcommittee on Gender and Diversity Issues report.

The Committee received a report from Bristow, chair of the Executive Committee Subcommittee on Gender and Diversity Issues.

a. SWA designation.

The Committee discussed sponsoring legislation in all divisions to amend the definition of an SWA, as well as charging staff to implement related educational initiatives.

It was VOTED:

“To sponsor legislation as a common provision in all three divisions to amend the definition of an SWA as follows: ‘An institutional SWA is the highest ranking female involved with the management of a member institution’s intercollegiate athletics program. An institution with a female director of athletics may designate a different female administrator involved with the management of the member's program as a fifth representative to the NCAA governance system.’

Additionally, in Division I, to sponsor legislation to amend the definition of a conference SWA as follows: ‘A conference SWA is the highest ranking female involved with the management of a member conference’s programs.’

“To develop a campaign to educate institutions on the appropriate manner in which to designate the SWA, such as sharing sample job announcements that depict appropriate and inappropriate methods of listing the position. Incorporate, within this educational campaign, specific communication from the NCAA president and/or the NCAA vice-president for diversity and inclusion to institutional presidents and/or athletics directors emphasizing the importance of this issue.”

b. Native American mascots, names and imagery.

The Committee discussed racial/ethnic/national origin references in their intercollegiate athletics programs. Bristow noted that several institutions made changes that adhere to the core values of the NCAA constitution pertaining to cultural diversity, ethical sportsmanship and nondiscrimination. He said that these issues are very complex and that institutions need to retain institutional autonomy to address them.

However, while the NCAA understands institutional autonomy is necessary in order to adhere to the mission of the NCAA, the Association has a duty to address actions and behaviors that are not consistent with core values and principles of the NCAA constitution. Therefore, it is the responsibility of everyone associated with an athletics program and event, including student-athletes, fans and coaches, to maintain an environment that promotes an atmosphere of respect for and sensitivity to the dignity of every person.

(1) There are certain events in intercollegiate athletics, such as NCAA championship competition, that are more of a public forum rather than home contests. Therefore, for those institutions that choose not to remove all references to Native American culture, the subcommittee outlined specific recommendations.

It was VOTED:

“That the Association shall implement a policy, effective February 1, 2006, that institutions with hostile or abusive racial/ethnic/national origin mascots, nicknames or imagery will be prohibited from hosting any NCAA national championship competition.

“Effective February 1, 2006, institutions with hostile or abusive racial/ethnic/national origin mascots, nicknames or imagery must take reasonable steps to cover up any of these references at any predetermined NCAA championship competition site that has been previously awarded. The financial responsibility to take reasonable steps rests on each institution and these reasonable steps must be taken in timely manner.

“Effective August 1, 2008, institutions displaying or promoting hostile or abusive racial/ethnic/national origin references on their mascots, cheerleaders, dance teams, and band member uniforms or paraphernalia are prohibited from wearing this material at an NCAA championship competition site.

“Effective February 1, 2006, institutions with student-athletes wearing uniforms or paraphernalia with hostile or abusive racial/ethnic/national origin references must ensure that those uniforms or paraphernalia are not worn during NCAA championship competition.”

(2) Further, in the context of nonchampionship activities, the Committee strongly encouraged institutions that continue to use hostile or abusive racial/ethnic/national origin mascots, nicknames or imagery to adopt the following best practices:

(a) Model specific institutions. Institutions should consider emulating the examples of institutions that do not support the use of Native American mascots or imagery such as the University of Iowa and the University of Wisconsin System, which do not schedule regular season, nonconference competition with institutions that use Native American nicknames, mascots or imagery.

(b) NCAA publications. Institutions should design their publications and campus materials in a manner that removes all hostile or abusive racial/ethnic/national origin references. The Committee noted that this is the current policy of the NCAA national office.

(c) Education/appreciation/outreach. Institutions should place an emphasis on understanding and awareness of the negative impact of hostile or abusive symbols, names and imagery. Further, institutions are encouraged to create a greater level of understanding and knowledge of Native American culture. Outreach to Native American tribes, organizations and students or faculty in their local areas is a start. However, further outreach beyond an institution’s local area may be necessary in order to obtain a greater understanding and awareness of issues that concern the Native American community. In addition, the Committee recommends initiatives that would educate the membership via public service announcements and posters. It is important to note that the purpose of education and outreach is to provide institutions with an opportunity to disengage from the use of racial/ethnic/national origin mascots, nicknames or imagery in the near future.

(d) Conference-level collaboration. Institutions should develop a partnership with conference offices in order to address this issue at the institutional level, as well as with the media.

7. Litigation update. The Committee received a report from the NCAA general counsel regarding litigation and settlement actions.

a. Metropolitan Intercollegiate Basketball Association v. NCAA update. The NCAA general counsel gave a status report to the Committee.

b. Mandatory binding arbitration. The Committee received a report from NCAA general counsel and Stone, chair of the Executive Committee Subcommittee on Mandatory Binding Arbitration. The subcommittee recommended that the Executive Committee not support the concept of mandatory binding arbitration as a condition of membership. Additionally, the subcommittee recommends that the Executive Committee implement, as an operating policy for the NCAA general counsel, increased effort to initiate mediation where appropriate.

It was VOTED:

“To accept the subcommittee’s recommendation.”

8. Centennial celebration.

The Committee received an update on the NCAA centennial celebration. This year-long celebration, which will begin at the 2006 NCAA Convention, presents an opportunity for the Association to illustrate its breadth and depth and share its role within higher education and intercollegiate athletics with the general public, media, external stakeholders and the NCAA members. The theme of the centennial will be celebrating 100 years of the student-athlete. The Convention planning staff noted that ESPN will produce vignettes highlighting the 25 defining moments of intercollegiate athletics, and the 100 most influential student-athletes. These 30-second vignettes will air early in 2006 on ESPN Classic and ESPN U.

9. NCAA/USOC Joint Task Force report.

The Committee received a brief report from Likins and Lennon regarding the NCAA/USOC Joint Task Force.

It was VOTED:

“To accept the summary provided by the task force representatives and refer the issue through the normal legislative channels for further discussion and action.”

10. 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 that included the following:

(1) Promotional activities. Reviewed noncontroversial legislation regarding the use of the name and likeness of student-athletes. Further, the Board considered whether to grant the national office staff some flexibility in the implementation of this legislation.

(2) Legislation override. Discussed a membership request to override NCAA Division I Proposal No. 2004-21. The Board agreed not to reconsider its position, and, therefore, the membership will vote on this proposal during the 2006 NCAA Convention.

(3) Committee on Academic Performance. Received and approved a report from the Committee on Academic Performance regarding possible adjustments to the Academic Progress Rate, as well as the provision of incentives.

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

(1) Restriction of membership. Discussed a Division III membership-sponsored proposal that seeks to establish a final permanent maximum size of Division III. The Council expressed concern that unilateral action by a division to restrict membership in this way could have ramifications on the membership of the other two divisions, and it asks that the Executive Committee discuss this issue during its October meeting and provide guidance to all three divisions.

(2) Requirement to purchase defibrillators. Took action to require schools to use next year’s enhancement fund money to purchase defibrillators for institutions, if this important health and safety issue has not yet been addressed by the institution.

(3) Division II identity. Took action to endorse the theme of “balance” as the key attribute of the division’s identity. The Council agreed to schedule special programming for Division II chief executive officers at the January Convention to continue its discussion of key issues and to discuss the Division II branding campaign.

(4) SWA designation. Used its authority to accept emergency legislation to modify the SWA legislation in the NCAA constitution, as requested by the Executive Committee Subcommittee on Gender and Diversity Issues.

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

(1) Promotional activities. Approved sponsorship of proposed legislation regarding the use of the name and likeness of student-athletes provided it precludes the promotion of alcohol, tobacco, performance enhancing substances and gambling related entities.

(2) SWA designation. Used its authority to accept emergency legislation to modify the SWA legislation in the NCAA constitution, as requested by the Executive Committee Subcommittee on Gender and Diversity Issues.

(3) NCAA Convention. Unanimously supported retaining the NCAA Convention during the second week in January.

(4) Future of Division III. Agreed to sponsor a legislative package of eight proposals related to the future of Division III including:

(a) Conference self-study.

(b) Opportunity for conference realignments without affecting automatic qualification.

(c) Amendments to the Division III philosophy regarding admissions standards, academic performance of student-athletes and integration of athletics programs into campus culture and educational mission.

(d) Increase sports sponsorship from five and five to six and six, effective August 1, 2010, with an exemption for institutions with an enrollment below 1,000 and a waiver opportunity.

(e) Increase minimum contest requirements in sports used to meet sports sponsorship regulations.