October 2006 NCAA Executive Committee Supplement No. 1

MINUTES OF THE

NATIONAL COLLEGIATE ATHLETIC ASSOCIATION

EXECUTIVE COMMITTEE

NCAA National Office August 3, 2006

Indianapolis, Indiana

Participants:

Michael Adams, University of Georgia

Charles Ambrose, Pfeiffer University

Philip Austin, University of Connecticut

Robert Fisher, Belmont University

John Fry, Franklin & Marshall College

Walter Harrison, University of Hartford, chair

Kate Hickey, Rutgers University, The State University of New Jersey, New Brunswick

Martin Jischke, Purdue University

Arthur Kirk, St. Leo University

Sydney McPhee, Middle Tennessee State University

Michael Miranda, Plattsburgh State University of New York

Ivory Nelson, Lincoln University (Pennsylvania)

Shirley Raines, University of Memphis

Sidney Ribeau, Bowling Green State University

Steve Weber, San Diego State University

John Welty, Fresno State University

Jill Willson, Texas A&M University-Kingsville

Myles Brand, NCAA

Bernard Franklin, NCAA

Delise O'Meally, NCAA, recording secretary

Clinton Bristow Jr., Alcorn State University, and Daniel Curran, University of Dayton, were unable to participate.

Also in attendance were: Gary Brown, 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; Jim Isch, senior vice president for administration/chief financial officer (CFO); Corey Jackson, interim director of diversity and inclusion; Tom Jernstedt, executive vice president; Kevin Lennon, vice president for membership services; Keith Martin, managing director of finance and operations; Wallace Renfro, senior advisor to the NCAA president; Judith Sweet, senior vice president for championships and education services/senior woman administrator; 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 2:30 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 two new members from the Division I Board of Directors: Sidney Ribeau, president of Bowling Green State University, and Steve Weber, president of San Diego State University. He also welcomed the new Division I Management Council chair ? Kate Hickey, associate director of athletics from Rutgers University.

Harrison thanked Art Kirk, vice chair of the Division II Presidents Council, for his service, noting this was the last Executive Committee meeting before his term ends.

2. Approval of April 28, 2006, meeting minutes.

It was VOTED

?To approve the Executive Committee minutes of the April 28 meeting as distributed.?

3. Mascot appeals to Executive Committee.

The Executive Committee convened an executive session to review Native American mascot appeals from two institutions. The Committee upheld the recommendations of the NCAA Division I Board of Directors and the NCAA Division III Presidents Council to retain the College of William and Mary and McMurry University on the list of colleges and universities subject to restrictions on the use of Native American mascots, names and imagery at NCAA championships.

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

a. Internal review of enforcement policies and procedures. Franklin provided an update on a comprehensive internal review of enforcement services and membership services policies and procedures. Recommendations from the report will be discussed with the NCAA Division I Committee on Infractions and the NCAA Division I Infractions Appeals Committee. An internal staff committee will oversee implementation of recommendations, and a status report will be presented to the Executive Committee at its October meeting.

b. Diversity Leadership Strategic Planning Committee. Brand updated the Committee on the work of the NCAA Office of Diversity and Inclusion (ODI). ODI created a diversity leadership strategic planning committee to create an effective strategic plan for the Association with the aim to increase the participation of those gender, racial and/or ethnic, and cultural groups who have historically been (and presently are) underrepresented among students, faculty and staff. In addition, as the student-athlete population grows to reflect the breadth of a multicultural society, the strategic plan will set forth strategies and recommendations that will advance a climate that supports the broad diversity representation within intercollegiate athletics.

c. Committee reduction review. O?Meally provided an overview of progress being made in response to the Committee?s January 2005 charge to reduce NCAA committee expenditures. She noted that committee budgets have been reduced and the percentage of meetings to be conducted in the city of Indianapolis was increased from 50 percent to 66 percent. On the issue of meeting reduction, it was the consensus of the Committee to maintain the quarterly meeting schedule for the Divisions I, II and III Management Councils, presidential bodies and Executive Committee.

5. NCAA Executive Committee Finance Committee report.

a. FY 2005-06 third quarter budget-to-actual. The Committee received a report of the Association?s financial activity for the third quarter of FY 2005-06, noting that results are within budget parameters. Projections indicate that the Association will exceed its revenue estimates for the fiscal year ending 2005-06.

The Association has received 100 percent of the rights fees from CBS sports but still will receive some revenue attributed to licensing and international television rights. The remaining seven percent of championships revenue will be reflected in the next quarterly report.

Division I expenses are consistent with the prior year. More than one-half of the revenue distribution expenses to conferences and member institutions will occur in the fourth quarter. Actual expenses for Divisions II and III are trending upwards; however, this was anticipated due to the expansion of championships and programming. Association-wide program and services expenses increased primarily in the legal service and insurance line items. To offset the increase in legal costs, the Association created a $3.5 million legal contingency. In addition, the Executive Committee allocated $600,000 of last year?s surplus for insurance to offset the increase in premiums as a result of the claims loss experience. The Association is still within its budgeted expense parameters, and it is projected that the Association will under spend its FY 2005-06 budget.

b. FY 2006-07 budget adjustment. The Committee reviewed a recommendation to amend the FY 2006-07 budget by increasing revenues and expenditures by $1,000,000. The modification is due to a surcharge on men?s and women?s basketball tournament tickets. The proceeds of the surcharge will be used to support men?s and women?s basketball in all three divisions. The Committee noted that a recent risk assessment conducted by Deloitte and Touche recommended that the NCAA not only develop long-term strategies to diversity its revenue streams but, in the immediate term, should undertake efforts to ensure the long-term viability of its basketball revenue stream.

It was VOTED

?To approve the budget amendment for FY 2006-07.?

6. Report of the Administrative Subcommittee of the Executive Committee. The Committee convened an executive session and reviewed recommendations on executive compensation from the Administrative Subcommittee.

It was VOTED

?To approve the executive compensation report.?

7. Report of the Executive Committee Working Group on Membership. The Committee received a report on the progress of a working group established to review issues and make recommendations related to membership growth and the status of Divisions II and III. The working group held its initial teleconference March 15 and began a discussion on overall membership issues, including reclassification trends, access to championships, and the financial impact of the recent membership growth rate in Division III. The group

continued its discussion during an in-person meeting June 16 and agreed to explore options ranging from slowing down membership movement from one division to another to creating a fourth division that would accommodate those institutions with missions that may be inconsistent with the philosophies of Divisions II or III or whose financial commitment to intercollegiate athletics may deviate significantly from the norm. The working group will meet again in October.

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

9. 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) Committee on Academic Performance.

(a) Approved a historical-penalty structure that requires any team with a multiyear Academic Progress Rate below 900 to be subject to a simultaneous review of multiple factors to determine whether the team is subject to historical penalties.

(b) Discussed the development of a possible academic improvement grant but acknowledged that a great deal more discussion is needed. It is anticipated that this discussion will continue in October.

(2) Amateurism fact-finding committee. Used its authority to adopt emergency legislation to establish an amateurism fact-finding committee, which will be charged with making a determination of facts related to the certification of the amateur status of a prospective student-athlete.

(3) NCAA Division I Proposal No. 2005-54 (eligibility ? graduate student or postbaccalaureate participation ? transfer eligibility). Discussed override requests received from the membership on Proposal No. 2005-54 and defeated a motion for reconsideration. Accordingly, the matter will be considered by the membership at the 2007 NCAA Convention.

(4) Subdivisional nomenclature. Voted to delete the Division I-A, I-AA and I-AAA labels from use, effective December 22, 2006. Adopted the title ?NCAA Division I Football Championship? to replace the ?Division I-AA Football Championship.? The terms ?Football Bowl Subdivision? and ?NCAA Football Championship Subdivision? will refer to the level of football played by Division I members.

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

(1) Division II football championships.

(a) Endorsed a Football Task Force proposal that would create two Division II football championships for the membership to vote on at the 2007 Convention. One championship bracket would be for programs offering no more than 36 financial aid equivalencies and a second bracket would be for programs offering up to 50 percent of the maximum equivalency limit (18 equivalencies or less).

(b) Endorsed legislation that would require a two-thirds majority vote to modify financial aid equivalencies in any Division II sport.

(2) Division II strategic positioning initiative. Discussed the progress made by the Community Advisory Group on the status of the Division II strategic positioning initiative and previewed preliminary creative work related to the strategic positioning platform. Additionally, the Presidents Council discussed its community engagement initiative and agreed to sponsor a legislative package that will allow for a uniform approach to community involvement and permit institutions to take advantage of their unique community contexts, needs and assets in a way that is consistent with other Division II schools in similar circumstances.

(3) CSTV network agreement. Discussed the new three-year regular-season television and broadband agreement between CSTV and Division II. This agreement will showcase selected Division II football and men?s and women?s basketball games live on television, beginning with coverage in the 2006 fall and winter 2007 seasons. The agreement also will include broadband streaming video of 40 Division II football games during the 2006 season and 32 men?s and women?s basketball games in 2007.

(4) Division II membership legislation. Sponsored a legislative proposal that modifies the new member process in Division II. This proposal would establish a uniform membership process for institutions seeking to become active members of Division II by requiring sponsorship of an active Division II member or conference and establishing a two-part membership process that must be completed prior to receiving an invitation to active membership status.

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

(1) Chancellors/Presidents Advisory Group. Conducted its first meeting with members of the newly established advisory group, with approximately 38 of 43 conferences and the Association of Independents represented. The group provided input and feedback on issues before the Council.

(2) Division III year-round drug-education/testing two-year pilot program.

(a) 2006-07. Approved an allocation of $325,000 for enhanced alcohol, tobacco and other drug education programming through two existing NCAA grant programs (CHOICES Grants and NCAA Health and Safety Speakers Grants).

(b) 2007-09. Approved a voluntary two-year comprehensive drug-education and testing pilot program without penalties for approximately 100 Division III institutions.

(3) 2007 Convention legislation.

(a) Approved sponsorship of a legislative package to address membership growth issues and respond to a North Coast Conference proposal to cap Division III membership, including extending the current moratorium on new provisional members until January 2008.

(b) Approved sponsorship of legislation to establish criteria to limit the use of male practice players in Division III women?s sports, consistent with commitment for participation opportunities for women.

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

The Committee received a report from the Executive Committee Subcommittee on Gender and Diversity Issues. The subcommittee discussed the issue of male practice players in intercollegiate athletics and recommended that athletics participation be gender specific in practice and competition. The Committee noted that the Divisions I and II