The NCAA News - News and Features

The NCAA News -- March 1, 1999

Governmental affairs report

The following is a report of federal activities from January 18 through February 18 affecting the NCAA membership. This report was prepared by the NCAA federal relations office. Copies of all documents, bills and correspondence in this report are available from the federal relations office, One Dupont Circle, N.W., Suite 310, Washington, D.C. 20036; telephone 202/293-3050.

Initial-eligibility issues

National Association of State Boards of Education continue to discuss NCAA initial-eligibility process.

On January 13, the National Association of State Boards of Education (NASBE) sent an update fax to a number of education associations. The fax was sent as a follow-up to a November 6 meeting hosted by state attorneys general and the Minnesota State Board of Education. The meeting included education associations that participated in a discussion of the impact of the NCAA initial-eligibility process. The update fax, forwarded to approximately 20 education organizations, provided information on how an organization could contact the NCAA to participate in a forum on the core-course review process. The update indicates that interested participants should contact Kevin Lennon, NCAA vice-president of membership services.

Another memorandum dated February 16 reminds the education community that "individual students -- with faces and names -- are being victimized by the NCAA's initial-eligibility process."

Gender-equity/Title IX issues

U.S. Supreme Court hears Smith v. NCAA Title IX lawsuit.

On January 20, 1999, the U.S. Supreme Court heard oral arguments on the question of whether the receipt of dues paid by its members subjects the NCAA to the provisions of Title IX of the Education Amendments of 1972. Renee Smith, a former volleyball player at St. Bonaventure, originally brought the Title IX suit against the NCAA after she was refused a waiver to play volleyball at Hofstra University and the University of Pittsburgh as a graduate student. Smith argued that the NCAA granted more waivers for men than women.

A federal district court dismissed the case on the grounds that the NCAA was not subject to Title IX. The court reasoned that Title IX applies to educational entities that receive direct federal funding. The court ruled that the NCAA was not in receipt of federal funding and, therefore, the law did not extend to the Association. However, the U.S. Court of Appeals for the Third Circuit reversed the lower court's decision. The Third Circuit held that the NCAA was subject to Title IX because it receives federal funds indirectly through the acceptance of dues from universities and colleges. The NCAA appealed the decision to the U.S. Supreme Court.

The NCAA's attorney, John G. Roberts Jr., argued before the Supreme Court that only direct recipients of federal funds are covered by Title IX. Since the NCAA receives government funds indirectly through dues paid by its members, it cannot be subject to Title IX.

Carter G. Phillips, representing Smith, argued that regardless of whether the NCAA receives federal funds indirectly, the scope of the law was broad enough to cover entities that control federally financed programs, such as college athletics departments. He argued that member institutions cede their authority, in areas like student athletics eligibility, to the NCAA. In these situations, the NCAA acts as their agent. In addition, Phillips argued that the NCAA is a direct recipient of federal funds because it operates the National Youth Sports Program (NYSP). The NYSP receives a grant from the federal government each year.

If the court rules that the NCAA is a recipient of federal funds, the NCAA will be subject to Title IX and, possibly, a number of other federal anti-discrimination statutes. Some legal experts believe that the court may not rule on the question of whether the NCAA was bound by Title IX but, instead, may send the case back to the district court to consider the theories raised by Smith's attorney. The court's decision will be announced prior to the summer adjournment in July.

Syracuse University Prevails in appeal of Title IX lawsuit -- lower court ruling upheld.

In January, the U.S. Court of Appeals for the Second Circuit upheld a District Court of New York's ruling that Syracuse University had not violated Title IX when it refused to field varsity teams in lacrosse and softball for women. In 1995, eight women filed a Title IX lawsuit alleging that the university was in violation of Title IX because it offered more sports opportunities to men than women. Syracuse argued that it had a history of expanding sports opportunities for women and thus satisfied one of the prongs under Title IX's three-part test. Syracuse is the first institution in a Title IX case to argue successfully that it complied with Title IX by demonstrating a history of "expanding opportunities" for women.

Title IX complaint filed against St. Mary's College (California).

On January 6, 1999, the California National Organization for Women filed a Title IX complaint with the U.S. Department of Education's Office for Civil Rights (OCR) against St. Mary's College (California). The Title IX complaint contains reports that St. Mary's women lacrosse players have tried unsuccessfully since 1995 to have their team upgraded from a non-funded club team to school-supported varsity status. According to newspaper reports, school officials indicate that they are working closely with OCR. A lacrosse club team has been in existence for nine years at St. Mary's College.

Former female Duke kicker refiles case in state court alleging sex-discrimination claims against the university and coach.

After a Title IX lawsuit against Duke University and head football coach Fred Goldsmith was dismissed for failing to state a claim, Heather Sue Mercer filed a suit in state court alleging sex-discrimination. Mercer, who graduated from Duke last year, alleges that the football coach led her to believe she was on the team (as a kicker) and then turned against her. The experience caused her distress, humiliation, periods of depression that affected her ability to study and "substantially reduced" the value of her $120,000 education. Mercer contends she could have earned higher grades and obtained a better job if Duke and Goldsmith had been more straightforward with her.

Office of Civil Rights to review Title IX findings in NCAA championships complaint.

The U.S. Department of Health and Human Services Office of Civil Rights has notified the NCAA that it will review for a second time the NCAA's championship program to determine if it is in violation of Title IX.

The original complaint was filed with OCR in 1992 and was resolved in March 1998 when OCR issued its findings that the NCAA did not violate the Title IX law in providing championship opportunities to male and female student-athletes. OCR cited the NCAA's criteria for determining championship opportunities for male and female teams in school year 1996-97. OCR found that "the divisions reflect proportionately the number of women's teams in each sport sponsored by division membership as men's teams."

OCR's decision is being reviewed because the original complainant believes the factual and legal analysis of the complaint was faulty.

Board of Trustees at Lafayette College refuses to cut athletics programs.

After three months of deliberation, Lafayette College's Board of Trustees decided not to make any drastic cuts in the college's athletics program. Instead, the college will begin a major fund-raising campaign to bolster its 23 varsity teams.

Miami (Ohio) delays elimination of four sports pending the success of fund-raising plan.

On February 6, trustees for Miami University (Ohio) voted unanimously to delay the elimination of its men's soccer, golf, tennis and wrestling programs pending the success of an ambitious fund-raising plan.

Trustee Roger Howe's plan calls for an extensive fund-raising effort by Miami's Athletics and Development offices. The plan requires that $13 million in endowments be raised by April 16, the date of the next trustee meeting. The plan also seeks to add $700,000 annually to athletics by increasing student activity fees by $50.

University officials indicated that if the $13 million is not achieved by the April meeting, the trustees will have to discontinue the four men's sports.

Equity in Athletics Disclosure Act forum to be held in conjunction with NCAA Title IX seminar.

The NCAA's federal relations office is helping to coordinate an Equity in Athletics Disclosure Act (EADA) forum to be held immediately following the NCAA's Title IX seminar May 12. The forum is intended to educate NCAA member institutions on the importance of the EADA forms. The forms have become the basis for many Title IX lawsuits, OCR complaints, and an investigation by the U.S. Department of Justice into salary discrimination among coaches at colleges and universities. Also, the underlying statutory language accompanying federal regulations and the design of the forms have all proven to be inadequate in ensuring clarity and conformity in the institutional reporting of the data. The forum will provide an opportunity for the NCAA and its membership to explore ways the regulations and forms can be revised to more accurately reflect the gender status of the reporting institutions.

The following organizations have agreed to participate in the forum: the National Women's Law Center (to discuss how EADA forms were used to file complaints with OCR against 25 NCAA Division I institutions); the American Association of University Women (to discuss AAUW's recommended changes to the law that now requires the U.S. Department of Education to collect and publish EADA forms); the U.S. Department of Justice (to discuss issues related to its ongoing investigation of institutional compliance with the Equal Pay Act and Title VII of the Anti-Discrimination Act); and the U.S. Department of Education's Office for Civil Rights and Postsecondary Education (to discuss how the athletics and higher education community can make recommendations on changes to the regulations). Representatives from NCAA committees and the NCAA membership also will be involved in the panel discussions. In addition, a student will be invited to appear on one of the panels to provide a consumer perspective on the public disclosure of the information.

The National Association of Collegiate and University Business Officers (NACUBO), the American Association of Collegiate Registrars and Admissions Officers (AACRAO), the American Council on Education (ACE) and the Center for Policy in Higher Education (CPHE) have agreed to promote the forum to their memberships.

Higher education community requests U.S. Department of Education to delay its work on regulations to the Equity In Athletics Disclosure Act (EADA) until after the NCAA forum in May.

During the week of February 8, the American Council of Education (ACE) sent a letter to the U.S. Department of Education asking for regulatory guidance on recent amendments to the Equity in Athletics Disclosure Act (EADA) and further guidance on the underlying Act. The letter requests that the Department provide a date by which institutions must submit the EADA form as required by new amendments adopted last year as part of the Higher Education Act of 1998. It is assumed that institutions will be required to provide the Department with a copy of their 1999 forms by October 15, 1999. Previously, institutions were not required to provide a copy of the forms to the Department. The forms were made available to the public upon request.

The new amendments to EADA require the Department to produce a report by April 1, 2000 that: (1) summarizes the information on all the forms it receives; (2) aggregates the information by divisions of the NCAA; and (3) contains information on each institution of higher education. The report is to be made available to members of Congress and to the public. The ACE letter to the Department asks if the EADA forms will be put on the Internet and whether the Department's provision of this data to the public will relieve individual institutions from this responsibility.

The ACE letter also suggests that the regulations governing the underlying EADA legislation and the revenues and expenses reporting, previously found in section 487 (a) (18) of the Higher Education Act and, subsequently, incorporated into the EADA, be carefully reviewed. In addition, the ACE letter acknowledges that the definitions included in the underlying legislation are vague and have resulted in inconsistencies in reporting.

The ACE letter informs the Department that the higher education community will be meeting in May at an NCAA-sponsored conference to discuss the EADA. The purpose of the forum is to discuss ways the current definitions and forms can be revised to improve the accuracy and consistency of reporting. The Department is currently conducting "negotiated rule-making" sessions with the higher education community to review proposed regulations for the Higher Education Act. The sessions are scheduled to conclude in late May. The letter asks for the Department to allow additional time for EADA comments in light of the NCAA's EADA forum May 12.

National Women's Sports Foundation summit scheduled for April in Washington, D.C.

The federal relations office is serving as a member of the planning committee for the National Women's Sports Foundation issues summit to be held in Washington, D.C., in late April. This year's summit will focus on international sports issues. Entitled "Beyond our Borders," the summit will feature sessions on: International Strategies for Linking Women's Sports; Effectively Targeting and Recruiting Corporate Sponsors; Creating a Healthy Environment for Your Athlete; and How to Get Your Event or Athlete Covered by the Media.

National Women and Girls in Sports Day events held in Washington, D.C.

On February 3-4, National Women and Girls in Sports Day was celebrated in the nation's Capitol with an awards reception honoring area scholar-athletes and a luncheon on Capitol Hill. At the luncheon, Sen. Ted Stevens, R-Alaska, and Sen. Chuck Robb, D-Virginia, were joined by Rep. Connie Morella, D-Maryland, Rep. Stephanie Tubbs Jones, D-Ohio, and Rep. Sheila Jackson Lee, D-Texas, in expressing strong support for Title IX and encouraging the expansion of opportunities for women to participate in sports. Secretary of Health and Human Services, Donna Shalala, also spoke about the lifetime benefits of early physical fitness.

The annual celebration of National Women and Girls in Sports Day began following the death of Florence Hyman. Hyman had been instrumental in promoting greater opportunities for women in sports. This year's Flo Hyman Award, presented annually by the National Women's Sports Foundation to a female athlete who represents the ideals of sportsmanship, was given to Olympic Gold Medal speed skater Bonnie Blair. The NCAA supported an awards reception honoring local high-school scholar-athletes by donating tickets to the event to area young women from disadvantaged backgrounds.

President and First Lady to host screening of HBO movie, "The History of Women in Sport."

On March 4, the President and First Lady will host a screening of a new television documentary on the history of women in sport. The documentary will be aired on HBO shortly after the advance screening.

Higher education issues

American Association of Community Colleges (AACC) and National Association of Collegiate Women Athletics Administrators (NACWAA) ask NCAA federal relations office to provide monthly updates to their respective memberships.

In January, both AACC and NACWAA asked the NCAA federal relations office to provide their organizations with periodic updates on federal and state athletics issues that could be edited for publication in their respective association newsletters. The federal relations office agreed to provide its monthly governmental affairs report to both associations.

NCAA federal relations office joins with higher education associations on U.S. Department of Education's Statistics Gathering Working Group.

On January 12, the federal relations office participated in a meeting of representatives from the higher education community and the U.S. Department of Education's National Center for Education Statistics (NCES). The purpose of the meeting was to discuss new postsecondary data reporting procedures under consideration by the NCES. Pat Forgionne, director of NCES, agreed to work with the higher education community to ensure that the data collection activities did not overly burden institutions. Forgionne recognized the consumer-oriented nature of the federally mandated data reporting and was receptive to involving a broad coalition of university personnel in the development process.

In December 1998, the higher education community sent a letter to Forgionne, objecting to some proposed changes in the IPEDS (Integrated Postsecondary Education Data System). In the past, the NCAA has worked closely with Forgionne in the development of a partnership to collect graduation rates from NCAA institutions under the Student Right-to-Know Act.

NCAA meets with U.S. Department of Education representatives to discuss Family Educational Records and Privacy Act (FERPA).

On January 13, NCAA staff met with LeRoy Rooker, director of the Department of Education's Office of Family Compliance, members of his staff, and representatives of the Department's general counsel's office. The purpose of the meeting was to discuss issues related to third-party disclosure outlined in an October 22, 1998, letter from Rooker to the NCAA. The October 22 letter provides the Office of Family Compliance's interpretation of the constraints FERPA places on the release of information to the public by a third-party recipient (such as the NCAA). The interpretation outlined in the letter would require NCAA press releases and reports, detailing infractions and penalties related to information gathered from student records, to omit the name of the institution, any description of the violation or any other information that would allow "a reasonable person" to identify a student involved. FERPA interprets a student record to be any documentation on the student held by a school.

The Department agreed to reconsider some fine points related to their letter. The NCAA also asked for advice on whether a congressional action would be necessary in order to change the Department's position on third-party disclosure under FERPA. The Department staff strongly recommended that the NCAA require student-athletes to sign a blanket disclosure form upon acceptance of athletics aid that would allow the NCAA to disclose the particulars of an infraction and the name of the school, while continuing to omit the name of students involved. The FERPA staff offered to draft a sample of such a form for NCAA review. The Department believed that this approach would alleviate the problem that now surrounds the release of such information.

NCAA requests waiver to distribute 1999 Student Right-To-Know Graduation-Rates Data on behalf of all NCAA member institutions -- electronic transfer of data suggested.

On January 28, the NCAA sent a letter to U.S. Department of Education Assistant Secretary David Longanecker requesting a waiver of the rules under the Student Right-to-Know Act. Specifically, the NCAA waiver request asks permission to continue the practice of providing graduation-rates data to all high schools in the country on behalf of the NCAA membership. For the past eight years, the NCAA has collected and published graduation- and persistence-rates data of Division I, II and III NCAA member institutions. In an effort to ease the burden on its membership, the NCAA's published data is mailed to every high school in the nation. This effort satisfies the requirement that each college and university provide graduation data to high-school coaches and guidance counselors. The Department has granted a waiver to the NCAA for the last two years (no waiver was required prior to that time).

In addition, the letter asks the Department to help the NCAA explore using electronic means to transmit the graduation-rates data to high schools in the future.

The next NCAA Graduation Rates report is due on July 1, 1999. This year, the NCAA will receive NCAA member institution data from the U.S. Census Bureau, rather than require members to provide the NCAA with a copy of the form they send to the federal government. The Census Bureau is the recipient of the federal forms and has agreed to make it available to the NCAA.

President's fiscal year 2000 budget request would increase the maximum Pell Grant to $3,250, provide greater funding for adult education programs and a new program to help prepare high-school students for college.

On February 2, the President delivered the Administration's proposed budget to Congress. Overall, spending for education was increased but proposed spending on higher education programs was slightly decreased. Funding was recommended to provide an increase of $125.00 to the Pell Grant maximum award bringing the top grant level to $3,250 per student. The largest increases in funding were directed toward several new Administration initiatives to help prepare students for college ($290 million) and expand adult basic education programs.

The President's budget proposal is not binding. It serves as a blueprint for Congress outlining spending initiatives. Congress, through its 13 appropriations committees, determines what programs to fund. Speaker Dennis Hastert, R-Illinois, has indicated that the House would not break for its traditional August recess until all appropriations bills are completed.

Gambling issues

NCAA makes second presentation before National Gambling Impact Study Commission.

On February 10, the NCAA appeared on a panel before the National Gambling Impact Study Commission. Bill Saum, NCAA director of agent and gambling activities, was invited to discuss the NCAA's concerns regarding Internet gambling as well as offer the Association's policy recommendations (outlined in a January 28, 1999, letter) for inclusion in the Commission's final report. Accompanying Saum was Daniel Nestel, NCAA assistant director of federal relations. The NCAA was joined on the panel by Albe Angel, a representative of the Interactive Gaming Council (an Internet gambling trade association).

In his testimony, Saum emphasized the NCAA's support for a new federal law prohibiting Internet gambling. Saum also recommended six other items that the commission should consider including in its final report. Saum indicated the importance of examining sports-touts advertising, increasing funding for the research of youth gambling behavior, providing for a government-funded national summit to discuss sports gambling among youth, training for health care professionals in screening for gambling disorders among college and high-school students, government funding for the development of gambling education programs, and urging the FBI, the justice department and the state attorneys general to place the enforcement of existing gambling laws as a high priority.

Following Saum's presentation, the nine commissioners asked questions for nearly one hour. The commissioners were very receptive to the NCAA's recommendations and appeared to share the concern over the high incidence of gambling among college students. Several commissioners with ties to the gambling industry called for the NCAA to devote more of its own resources to gambling education and research. The commissioners felt the NCAA, as a member of the higher education community, was in a unique position to encourage and help fund university research that examines gambling behavior on campus. In addition, one commissioner suggested that the NCAA require each of its members to provide student-athletes with a comprehensive gambling education program. Chair Kay James agreed to write a letter to NCAA President Cedric W. Dempsey detailing these suggestions.

At the conclusion of the session, several commissioners offered Saum their appreciation for appearing before the commission. Following the panel discussion, the Commission's Internet Subcommittee voted, 3-0, to recommend support for a prohibition of Internet gambling. It is expected that the Commission's final report will include a recommendation urging Congress to adopt legislation prohibiting Internet gambling. The Commission's report is due June 20, 1999.

National Gambling Research Council holds meeting in Washington, D.C., to discuss latest findings in gambling research.

On February 5, the federal relations office attended the National Center for Responsible Gaming (NCRG) conference on "New Directions in Gambling Research." The conference was held at George Washington University and brought researchers, clinicians, journalists and others together for a day-long dialogue about new gambling research.

The NCRG, is an independent, nonprofit organization. While the NCRG receives much of its financial support from gaming and gaming-related companies, a board of directors consisting of prestigious scientists, researchers and other distinguished individuals governs the organization and the distribution of research funding..

The conference brought together prominent scholars to discuss and share their research on gambling-related topics. However, the message was that gambling research is still in its infancy stage. While more than $1 billion is spent annually by the federal government, foundations and the private sector on mental health and addictions research, only a few of these dollars are directed toward gambling studies.

The NCAA has been working with several of the researchers attending the conference in an effort to develop partnerships and share information. The NCAA is working with Dr. Howard Shaffer, director of the Harvard Medical School Division on Addictions, to develop a series of gambling-related questions that could be used in large surveys currently conducted by the Department of Education. Also, the NCAA has also been in contact with a researcher who has applied for a grant to study Internet gambling among college students.

NCAA federal relations office makes Internet gambling presentation to higher education technology committee.

On February 9, the federal relations office met with members of the Higher Education Alliance for Information Technology at their annual information technology forum to discuss the prospects of federal Internet gambling prohibition legislation. The creation of the Alliance was led by the National Association of State Universities and Land Grant Colleges (NASULGC) with the purpose of bringing together representatives of the higher education community in an effort to craft a single, united message on federal issues related to technology. Graham B. Spanier, president of Pennsylvania State University and chair of the NCAA's Division I Board of Directors, serves as the chair of Presidential Advisory Board. The forum was attended by 29 higher education representatives, including technology experts, librarians and Washington, D.C.-based associations.

A discussion of the merits of federal legislation to prohibit gambling over the Internet was led by the federal relations office. The attendees were told of the NCAA's strong support for the proposed legislation and were provided an update on the most recent research revealing a high incidence of gambling among college students. The group asked that the NCAA keep the Alliance apprised of developments in the legislation. Last year, the Alliance had expressed reservations about certain aspects of a Senate-proposed Internet gambling prohibition bill. The group's primary concerns were the potential for infringement on First Amendment rights, Internet service provider liability and possible costs associated with implementing court-ordered injunctions. These issues are likely to be addressed in future legislation introduced by Sen. Jon Kyl, R-Arizona.

The NCAA will continue to share and seek information from selected members of the Alliance as a new Internet gambling prohibition makes it way through Congress.

Satellite royalty payments

Senate Judiciary Committee holds hearing on satellite bill -- legislation includes a provision significantly reducing the 27-cent royalty rate.

On January 28, the Senate Judiciary Committee held a hearing on S. 247, the Satellite Home Viewer Improvements Act. All the witnesses were from either Utah or Vermont, homes to Chairman Orrin Hatch, R-Utah, and Ranking Minority Member Patrick Leahy, D-Vermont, respectively. The witnesses included two representatives from local television affiliates in Utah and Vermont, a satellite carrier, and a satellite dealer. All the witnesses commended Hatch and Leahy for introducing a bill that will permit the satellite delivery of local television stations into local markets. The consensus was that this provision would enable satellite carriers to better compete with the cable industry.

Though not discussed at the hearing, S. 247 also extends the current satellite compulsory license regime through 2004. The NCAA, as a member of the Joint Sports Claimants (JSC), receives a portion of the royalties paid by satellite carriers for the retransmission of distant signals, which includes certain sports programming. S. 247 would reduce the royalty rates paid for superstation signals from 27 cents to 18.9 cents while reducing the fees paid for network signals from 27 cents to 14.85 cents. Hatch and others feel this reduction is necessary to help satellite carriers better compete with the cable industry. Copyright owners, including the JSC and the Motion Picture Association of America, are generally opposed to the reduction. The copyright owners believe that the satellite owners, consisting largely of Fortune 500 companies, do not need a subsidized rate. Furthermore, the copyright owners argue that it is restrictive provisions under current law, not the satellite royalty rate, that prevent the satellite industry from effectively competing with cable companies.

The Judiciary Committee is expected to markup the legislation by the end of the month.

Court upholds increase in satellite royalty payments to copyright holders -- decision will not likely stop Congress from rolling back the rate increase due to consumer concerns.

On January 29, the United States Court of Appeals for the D.C. Circuit denied a petition to review an order of the Librarian of Congress adopting a satellite royalty rate increase in the summer of 1997. The court found that the Librarian, in adopting an independent arbitration panel recommendation, did not act in an arbitrary manner.

While the court preserved the 27-cent rate for the retransmission of distant network and superstation signals by satellite carriers, there are already efforts to roll back the rate through passage of legislation in Congress. The satellite carriers have argued that the royalty rate issue is one of the obstacles preventing them from competing with cable. They argue that if they have to pay higher royalty fees (which are passed on to the consumer), satellite prices will not be attractive enough to enable the satellite industry to be a viable competitor to cable. Legislators in Washington are siding with the satellite carriers, as they grow concerned over the recent sharp increases in monthly cable fees.

National Youth Sports Program -- Proposed Federal Funding

As in years past, the Clinton Administration requested no funding for the NYSP in fiscal year 2000. The federal budget proposal delivered to Congress February 2 cites the long history of federal funding for the NYSP as the reason funding was not requested. The Administration believes private resources should be directed toward the funding of the NYSP, instead of continued reliance on federal funds. In the past, the Administration's requested funding level for NYSP has had no bearing on the actual amount appropriated by Congress. NYSP received $15 million in fiscal year 1999 (the authorization ceiling for the program), an increase of $1 million over the previous year.

Model Licensing Codes for Manufacturing of University Apparel

Students stage "sit-ins" to protest university licensing agreements with clothing manufacturers using questionable labor practices.

On February 5, 27 students occupied the office of Georgetown University's president to pressure the university to adopt a tougher code of conduct for clothing manufacturers authorized to use the school's name on products.

The students staging the sit-in indicated they wanted the university to publicly disclose the location of factories that produce official Georgetown merchandise in order for human-rights groups to monitor work conditions at the sites. The protest ended February 9 when the university agreed to enforce tougher labor standards for manufacturers of university-licensed products.

Also, a similar protest at the University of Wisconsin, Madison, involving more than 60 students, ended after four days when administrators agreed to a tougher code of conduct for the manufacturing of clothing that bears the university's name. A 31-hour sit-in at Duke University in early February also led administrators to agree to strengthen that institution's position on this issue.

The students at these universities have been working together to develop a proposed code of conduct for college-apparel licensees. The proposal would set minimum standards for factories that produce campus apparel. Proposed codes of conduct have been developed by the apparel industry, the Clinton Administration in cooperation with the U.S. Department of Labor, and the collegiate licensing community. The students do not believe the codes go far enough because they fail to require apparel companies to reveal the location of the factories used to produce their goods. These factories often are located in third-world countries where work conditions are frequently questioned by Westerners. The apparel industry argues that revealing the location and name of the manufacturer would result in a competitive disadvantage.

On February 16, protests took place at Cornell University, Harvard University , Princeton University and Yale University calling on the schools to require manufacturers of products baring the institution's name to agree to fully disclose the locations of their factories, to allow nonprofit groups to monitor the working conditions on site and to adopt a "living-wage" salary standard for workers. The eight Ivy Group colleges met February 17 to draft a new licensing code for the institutions to guide the relationship between the universities and the manufactures of school apparel.

Federal government, manufacturing industry, collegiate licensing officials work to develop model codes.

The U.S. Department of Labor, sporting goods manufacturers and collegiate licensing officials have developed separate codes of conduct to serve as models for the prevention of "sweat-shop" conditions in the manufacturing of apparel bearing a university's name or logo. The proposed model codes do not, however, allow for the release of the name and location of the manufacturing plants. Several colleges and universities have adopted their own codes of conduct to restrict manufacturers from utilizing the services of manufacturing plants employing unfair labor conditions. Student groups across the country are calling for stronger agreements between universities and manufacturers and full disclosure of plant names and locations.

Athlete-Agent Issues

NFLPA committee recommends two-year suspension for athlete agent.

The NFL Players Association's Disciplinary Committee recommended that agent James Gould serve a two-year suspension for his involvement with a college football player. Gould provided the student-athlete with tickets to a jazz festival and paid for a hotel room for one of the student-athlete's friends.

Pursuant to the Committee's recommendation, Gould will pay a $15,000 fine should he try to be recertified after the suspension. Gould's clients include Terry Glenn and Dan Wilkenson.

Agent appears to have violated Pennsylvania's athlete-agent law.

Wendell Armant's signing of two Pennsylvania State University football players is likely in violation of a Pennsylvania athlete-agent law. The law requires agents to register with the state. Armant signed the top two NFL prospects from Penn State but failed to register with the Pennsylvania State Athletic Commission.

The registration provision, adopted by the state legislature last year, could result in a $5,000 fine for each violation.

NBA star negotiates his contract extension without agent.

Milwaukee Bucks star Ray Allen recently negotiated his own six-year $70.9 million contract extension with the team. Allen enlisted the help of two attorneys, an accountant, and a business manager to ensure that " the deal was to his liking." By paying his advisors an hourly rate, Allen saved more than $2.8 million based on the standard four percent commission rate charged by agents.

Tax Issues

IRS may limit future tax deductions for donations made to universities for stadium construction and renovations.

According to an Iowa newspaper, the U.S. Internal Revenue Service apparently is threatening to halt the use of a tax deduction that helps universities raise funds for stadium construction and renovations. A Des Moines businessman is battling the IRS over a $200,000 contribution made by his company in 1996. The donation was intended to help finance the construction of new skyboxes and a new press box at Iowa State University.

The businessman contends that he should be able to deduct $145,000 of his $200,000 contribution as a charitable donation. The IRS contends that since the businessman received the right to lease a 16-seat skybox, the $200,000 contribution was solely to secure seating and not a charitable donation. The businessman counters by arguing that the only portion of his contribution that is not deductible is the value of the license for the use of the skybox and parking passes (valued at approximately $25,000 over a 10-year period), not the entire $200,000 amount.

If the IRS does not reverse its position, many institutions that utilize similar fund-raising strategies may be impacted. The Des Moines businessman has filed a request for technical advice with IRS.