8/9/02 Executive Committee Minutes

MINUTES OF THE

National Collegiate Athletic Association

Executive Committee

NCAA National Office August 9, 2002

Indianapolis, Indiana

Participants:

Percy Bates, University of Michigan

Donald Beggs, Wichita State University

Carol A. Cartwright, Kent State University

Patricia Cormier, Longwood University

Ronald Eaglin, Morehead State University

Bernard W. Franklin, Virginia Union University

David B. Frohnmayer, University of Oregon

Milton A. Gordon, California State University, Fullerton

Robert E. Hemenway, University of Kansas

Bette Landman, Arcadia University

Robert W. Lawless, University of Tulsa

Francis Lawrence, Rutgers, The State University of New Jersey, New Brunswick

Michael J. Marcil, North Central Intercollegiate Athletic Conference

John M. McCardell Jr., Middlebury College

Linwood H. Rose, James Madison University

Joseph A. Steger, University of Cincinnati

Christopher Walker, University of Redlands

Randall Webb, Northwestern State University

Bridget Belgiovine, NCAA, recording secretary

Cedric W. Dempsey, NCAA

James L. Isch, NCAA

Also in attendance were the following: Daniel Boggan, NCAA senior vice-president; Gary Brown, manager, The NCAA News; Elsa Cole, NCAA general counsel; Laronica Conway, coordinator, public information; Danita Edwards, NCAA vice-president for public affairs; Thomas Jernstedt, NCAA senior vice-president; Keith Martin, NCAA director of finance and business operations; Wallace Renfro, former NCAA director of public relations; Judith Sweet, NCAA vice-president for championships; David Berst, Daniel Dutcher and Mike Racy, NCAA chiefs of staff; and Jan Brown and Beth DeBauche, NCAA assistant chiefs of staff.

Carol Harter, University of Nevada, Las Vegas, was not able to attend the meeting.

[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 7:58 a.m. by the chair, President Lawless. All members were present as noted above.

1. Welcome and Announcements. President Lawless welcomed Joseph Steger, University of Cincinnati, as a new member of the NCAA Executive Committee.

2. Approval of Previous Minutes.

It was VOTED

“That the Executive Committee minutes of the April 26 meeting be approved as distributed.”

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

a. Division I Board of Directors.

(1) Reviewed a report and discussed the academic reform measures.

(2) Reviewed a report and discussed the economic baseline study data.

b. Division II Presidents Council.

(1) Reviewed the previously approved Division II baseball drug testing pilot study and recommended extending it through December 2002.

It was VOTED

“To extend the previously approved Division II baseball drug testing pilot study through December 2002.”

(2) Reviewed regional representation on the Division II Presidents Council and noted that the Council will sponsor legislation for the 2003 NCAA Convention to expand to 15 members, effective August 2003.

(3) Approved sponsorship of 31 legislative proposals, including 11 proposals to deregulate NCAA Bylaw 14.

c. Division III Presidents Council.

(1) Discussed the philosophical basis of the review of the future of Division III and for the division's review of its goals related to the future of Division III. Made a commitment to gather input and feedback this fall from broad Division III membership constituents.

(2) Agreed to sponsor legislation for the 2003 Convention to fund championships enhancement consistent with automatic qualification principles, effective 2005, and to standardize the playing and practice seasons to limit the total playing season to 19 weeks.

4. NCAA Committee on Competitive Safeguards and Medical Aspects of Sports. The Committee reviewed the 2001 and the five-year comparative report of both postseason and year-round drug-testing results. The five-year results for NCAA postseason and year-round testing indicate that positive test results ranged from less and 1 (.008) to 2.4 per 100 tests per year with year-round positives slightly less than NCAA postseason testing. It was noted that no aggregate data are released without the approval of the Executive Committee.

It was VOTED

“To approve the 2001 NCAA drug-testing program results for the period from January to December.”

5. Litigation Update. The Committee received a report from the NCAA general counsel regarding current litigation. The Committee requested that staff assess divisional differences in Bylaw 12 and identify Association-wide implications, if any.

6. Governmental Relations Update. Action items from President Dempsey were reviewed under the president's report section of the agenda.

7. Ad Hoc Review Committee.

a. Ad Hoc Report. It was noted that the report had been distributed to the membership and posted on the NCAA Web site, and that all three divisional Management Councils and presidential bodies were requested to provide input.

b. Divisional Requests for Input. The Committee reviewed the divisional Management Councils' and presidential bodies' prioritized list of Association-wide and divisional issues in seven critical areas identified from the report. It was noted that the Executive Committee has minimal, yet important constitutional duties. The report grew out of input from all three divisions and is responsive to membership issues.

c. Divisional Input. The Committee discussed divisional input, noting:

(1) Federation and divisional autonomy has resulted in positive outcomes for each division.

(2) Federation has raised some critical issues that the Association and the divisions continue to address.

It was VOTED

“That the Executive Committee:

“(a) Articulate its priorities as part of the transition to new NCAA leadership. The priorities should include a more focused agenda to address critical issues.

“(b) Work with the three Management Councils and presidential bodies to present a set of Association-wide recommendations for action by the Executive Committee at its April 2003 meeting.

“(i) Identify ways to strengthen the NCAA Convention to enhance unity in the Association.

“(ii) Identify ways to continue to advocate for equal opportunity for minority and female constituents in intercollegiate athletics.

“(iii) Propose initiatives designed to improve communications and education, and build support among various constituent groups.

“(iv) Identify options for improving the effectiveness of the Executive Committee to reflect membership interests that span all divisions.”

“That each division consider the following issues and report its actions to the Executive Committee at its April 2003 meeting:

“(a) Membership concerns about the legislative process and recommendations for improvement.

“(b) Identify a process to increase chief executive officer (CEO) participation and involvement in the governance of the Association.

“(c) Clarify the role of the conference commissioners and the NCAA staff.”

8. NCAA Foundation Report. The Executive Committee reviewed the process used to evaluate the long-term viability of the NCAA Foundation. Based on the reports, it was noted that the Foundation Board unanimously voted July 31, 2002, to dissolve the Foundation. In accordance with its bylaws, the assets of the Foundation will be distributed to the NCAA. The Foundation Board will be replaced with a leadership advisory board that will be comprised of corporate leaders who can provide broad-based advice and counsel to the NCAA president. Leadership advisory board members also will be expected to contribute $10,000 annually to the NCAA leadership conference or NCAA scholarship programs; participate in the leadership conference; and assist the NCAA in advancing its messages about preparing student-athletes for productive and meaningful lives through athletics and higher education.

It was VOTED

“To endorse the action of the Foundation Board to dissolve the NCAA Foundation, distribute its assets to the NCAA and establish the leadership advisory board.”

9. Presidential Search Update. The Committee received an update, noting that the search committee has had several meetings with Baker Parker to discuss candidates for the NCAA president. The search committee is adhering to its schedule. The search committee will meet August 9 with Baker Parker to narrow the candidate field to 8 to 12 individuals. The search committee will conduct interviews in September.

It was noted that the Executive Committee will be interviewing final candidates at a special Executive Committee meeting scheduled for October 10-11 in Indianapolis.

10. Financial Matters.

a. Third Quarter Fiscal Year 2001-02 Budget-to-Actual Report. The Committee reviewed a report of the activity for the first three quarters of the fiscal year. It is anticipated that the Association will meet its revenue budget and that it will be within its expense budget for the fiscal year ending August 31, 2002.

b. Fiscal Year 2002-03 Operating Budget. The Committee reviewed a summary of revenues and expenses for the fiscal year 2002-03.

(1) Revenues. The most significant difference in the Association’s revenue is in television and marketing rights. The Association will receive approximately $75 million in increased rights fees (television and licensing rights fee line item). The budget for championship revenue is expected to increase approximately $1.5 million due to ticket revenue in men’s and women’s basketball, baseball, men’s ice hockey and wrestling. Investment returns are projected to be lower for the next fiscal year, and therefore, investment revenue is budgeted at a slight decrease despite having additional dollars to invest for next year.

(2) Expenses. The Division I distribution will increase approximately $63.3 million or 35 percent. The newly established $17 million student-athlete opportunity fund will be distributed in the summer of 2003. The fund will provide additional benefits to NCAA student-athletes.

The Division I championships’ expenses will increase approximately $4.2 million. This includes a 25 percent increase in per diem allowances ($2.5 million) for participating institutions competing in NCAA championships and increases in travel related expenses. New initiatives for Division I championships include expansion in men's and women's track and field, softball, men’s ice hockey, men’s lacrosse, and predetermined sites for women’s basketball. Division I also will provide funding for the basketball mentoring program and championships’ promotions. The Division I direct expense allocation is approximately 70.4 percent of the budget compared to 66 percent in the prior year.

Divisions II and III have been budgeted at their allocations of 4.37 percent and 3.18 percent of the revenue budget. This represents an additional increase of $3.8 million and $2.76 million respectively.

Total Association-wide expenses are 21.3 percent of the total budget compared to 23.6 percent in the prior year. Association-wide expenses include approximately $4.9 million in base adjustments and $3.0 million in new initiatives. Adjustments for the Association-wide expenses are the following:

(a) Insurance adjustments of $3.8 million include $3.0 million of new dollars and $800,000 of reallocated resources. The catastrophic injury insurance program and the event cancellation insurance represent the most significant increases.

(b) $1.4 million that includes adding ephedrine as part of the year round drug-testing program, expanding student-athlete research, expanding women and ethnic minority programs, and providing additional resources for student-athlete scholarships and leadership programs.

(c) $900,000 for branding efforts and the NCAA Hall of Champions promotions as part of the commitment from the bundled rights fee agreement.

(d) $500,000 for service contracts that includes drug testing, youth programs, financial services, telephone, postage and building services.

(e) $1.3 million for staff travel, salaries and benefits. This amount represents an increase of 3.5 percent for merit increases and .25 percent for support staff equity adjustments.

It was noted that staff will present the 2003-04 budget next year for approval. The 2003-04 budget cycle will focus on base budget adjustments.

It was VOTED

“To approve the budget for fiscal year ending August 31, 2003.”

11. President's Report.

a. Uniform Athlete Agent Act. The Committee received an update on the Uniform Athlete Agent Act (UAAA), which was created in the fall of 2000. NCAA staff efforts working with member institutions in each state have proven very successful with 31 jurisdictions introducing the legislation in the first two legislative years. Of these 31 jurisdictions, 16 have passed the UAAA. Fourteen additional states introduced the bill in 2002. To date, only nine states and one territory have neither introduced the UAAA nor passed previous legislation regulating athlete agents.

It was VOTED

“To approve the request to send a memorandum to CEOs and directors of athletics at member institutions requesting support for UAAA enactment in those states that have yet to introduce or pass the legislation.”

b. White House Title IX Commission. The Committee members noted that the White House Title IX Commission is planning to hold six meetings during the next five months in various areas of the country. Town hall meetings will precede the first four of these. The Committee expressed its desire for Association involvement.

It was VOTED

“(1) That the Association continue to publicly state its support of the law and identify accomplishments related to the law.

“(2) That divisional representatives be encouraged to attend town hall meetings.

“(3) That staff attend town hall and other meetings, as appropriate, and provide research and data on the positive outcomes of the law and NCAA initiatives, as well as information to correct misinformation about Title IX causing the demise of men's sports.

“(4) That some type of national coordination of standards/interpretations and closer scrutiny of the U.S Department of Education Office for Civil Rights regional office actions be recommended to the Commission.”

c. International Initiatives. In response to the Executive Committee's request, the NCAA president presented specific recommendations to assess the NCAA's potential involvement in international education initiatives. The recommendation included a series of questions designed to evaluate specific international requests and determine whether the NCAA should become involved.

Noting the concerns expressed by the Committee related to whether this issue was a high enough priority to invest valuable staff time and Association resources, especially during a presidential transition, the president requested the appointment of a small subcommittee to identify goals for NCAA involvement in international initiatives. In addition, the subcommittee would develop an assessment tool to determine its validity in evaluating whether the NCAA should become involved in international initiatives.

It was VOTED

“To appoint Presidents Cartwright, Frohnmayer and Landman to serve as a subcommittee to identify goals for NCAA involvement in international initiatives and to review the assessment tool to determine its validity for NCAA involvement in international initiatives. The group should present recommendations for Executive Committee action at its November 1 meeting. All work of the subcommittee should be accomplished through e-mail communication and a few conference calls.”