The NCAA News - News & Features

1996-97 NCAA budget approval process the last of its kind

The restructuring plan that was approved in January is scheduled to take effect August 1, 1997. Unless that implementation date is delayed at the 1997 Convention, the NCAA budgetary process will take on a completely different look in 1997.

This year, however, it is business as usual.

The Budget Subcommittee will submit to the Executive Committee a 1996-97 budget with projected operating revenue of $239.4 million, almost 80 percent of which will come from the NCAA's contract with CBS.

In addition to approving the overall NCAA budget, the Executive Committee will review several topics with financial ramifications, including the report of the NCAA Investment Reserve Committee, which met in July; the Association's new Internet Web site; the revenue-distribution plan; the impact of new initiatives and restructuring on staff and operating costs; and Division II compliance efforts.

Next year, barring any modifications in the implementation date, the 1997-98 budget will be formed primarily on a division-by-division basis. The exact budgeting process has not been determined yet, but the method could be something similar to the following:

The current Executive Committee and the new Executive Committee (16 chief executive officers representing the three presidential boards) could meet in May 1997 and review preliminary budget requests from Divisions I, II and III. At that meeting, those groups also could identify potential Association-wide budgetary problem areas.

Between May and July 1997, the staff and the respective division budgeting bodies could conduct detailed budget analysis and review, both for division-specific and Association-wide purposes. The recommendations could be forwarded to the division Management Councils for meetings in late July.

The Division I Board of Directors and the Divisions II and III Presidents Councils then could meet in early August to approve the division budgets, and the new Executive Committee could meet afterward to approve the overall Association budget.

In addition to the budget items for this year's meeting, NCAA Executive Director Cedric W. Dempsey will report on several major topics, including restructuring, litigation related to the restricted-earnings coach legislation, the NCAA Special Committee on Agents and Amateurism, funding for the National Youth Sports Program, and the state of discussion with the USOC/NCAA task force regarding a possible USOC grant for certain nonrevenue and emerging sports.

Reports also will be provided from the NCAA Foundation and from the working group to review the NCAA headquarters project.

Besides Dempsey's report on the status of the agent committee, general and special committee reports will be provided by the Special Committee to Review NCAA Marketing, Licensing and Promotional Activities; the Committee on Women's Athletics; the Minority Opportunities and Interests Committee; and the Committee on Competitive Safeguards and Medical Aspects of Sports.

Proposed legislation for the 1997 Convention also will be considered, along with recommended changes in playing rules and reports from many of the Association's sports committees.