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The NCAA News -- April 12, 1999

Infractions case: University of Wisconsin, Madison

The University of Wisconsin, Madison, has been placed on probation for two years for violations of NCAA bylaws regarding improper administration and control of athletically related income and supplemental pay for athletics department staff members.

The Division I Committee on Infractions also has required that the university continue to develop a comprehensive athletics compliance education program during the probationary period.

The committee determined that between 1993 and 1997, several athletics department personnel, including the head football coach, director of athletics, head men's golf coach and sports information office administrator, received compensation for work performed outside the institution that had not received prior written approval from the university's chief executive officer.

The committee also found that numerous athletics department employees received supplemental income and benefits from outside sources without obtaining required annual written approval. Among the benefits and perquisites received were expenses incurred in excess of state reimbursement limits for food, lodging, car rentals and local recruiting expenses.

Two of the employees also endorsed commercial products for personal gain without obtaining prior written approval.

During the summer of 1997, the men's assistant soccer coach requested through two representatives of the university's athletics interests that a financial contribution be made from the university's soccer booster club to support a youth soccer association. The soccer association received a $35,000 donation.

Athletics staff members are required to obtain prior approval for outside compensation so the institution can monitor the amount and source of such compensation.

On November 13, 1998, representatives of the enforcement staff and Wisconsin appeared before the committee.

The violations found by the committee were:

Numerous athletics department staff members received athletically related supplemental income and benefits from sources outside the institution without obtaining prior written approval from the university's chief executive officer. In most cases, this supplemental income covered normal and reasonable business expenses in excess of state reimbursement limits and would have been approved if requested.

The institution's name was utilized in endorsements for personal gain without prior written approval.

A university booster club made a substantial financial contribution to a local youth athletics association.

The university failed to adequately monitor its athletics program as to various booster organization funds and other compensation to athletics department staff persons.

In imposing penalties, the Committee on Infractions considered the following corrective actions that have or will be taken by the university:

The chancellor's office will exercise more oversight in the affairs of the athletics department.

A "Special Accounts Policy" was adopted on October 10, 1997, where only the chancellor's designee has the authority to approve expenses, and advance approval for such expenses must be obtained.

All departmental forms that request a check from external funds are routed through the compliance office for review.

Reporting forms have been revised to make more clear that "in kind" compensation must be reported.

The Wisconsin Soccer Booster Club has been dissolved and the checking account closed.

The university accepted the resignation of the former director of compliance.

The violations in this case occurred within a five-year period following a previous major infractions case involving the university. The violations in this case largely involved the same types of issues as Wisconsin's previous case in 1994, specifically that the university failed to adequately monitor the use of various booster organization funds and other compensation matters for athletics personnel that required advanced approval. The violations subjected the university to the NCAA's repeat-violator penalties.

The committee determined, however, that repeat-violator penalties should not be applied, noting that Wisconsin self-reported the violations after undergoing an internal audit, none of the funds involved accrued to the benefit of enrolled or prospective student-athletes, virtually all of the expenditures would have been considered "proper" if requisite prior written approval had been obtained and there was no competitive advantage.

The Committee on Infractions imposed the following penalties:

Two years of probation from November 13, 1998, the date of the hearing before the committee.

The university will conduct a comprehensive internal audit, focusing on fund-raising activities and expenses of its athletics booster organization; provide a written analysis of the annual external financial audit; establish an educational program for all athletics personnel involved with athletics department finances and outside income; require the athletics director to attend an NCAA compliance seminar; submit a preliminary report to the NCAA that provides a schedule for establishing the compliance and education programs; and file annual compliance reports.

As required by NCAA legislation for any institution involved in a major infractions case, Wisconsin is subject to the Association's repeat-violator provisions for a five-year period beginning on the effective date of the penalties -- in this case, November 13, 1998.

The members of the Division I Committee on Infractions who heard this case are: David Swank, committee chair, professor of law, University of Oklahoma; Richard J. Dunn, professor of English, University of Washington; Frederick B. Lacey, attorney and retired judge, LeBoeuf, Lamb, Greene & MacRae, Newark, New Jersey; James Park Jr., attorney and retired judge, Brown, Todd & Heyburn, Lexington, Kentucky; Yvonne (Bonnie) L. Slatton, chair, department of physical education and sports studies, University of Iowa; and Thomas E. Yeager, commissioner, Colonial Athletic Association.