National Collegiate Athletic Association

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The NCAA News -- December 6, 1999

Interpretations

Telephone Conference No. 7 October 25, 1999

Acting for the Division I Management Council, the Division I Academics/Eligibility/Compliance Cabinet Subcommittee on Legislative Review/Interpretations issued the following interpretations:

Financial Aid/Professional Organizations

1. Providing Financial Aid to a Student-Athlete who Signs a Professional Contract After Exhausting Eligibility During the Previous Academic Year (I). The provisions of Bylaw 15.3.1.4, which permit a student-athlete who signs a contract with or receives compensation from a professional sports organization to continue to receive institutional financial aid for the remainder of the term of the award, apply only during the academic year in which the student-athlete completes his or her seasons of competition. Therefore, if a student-athlete signs a contract with or receives compensation from a professional sports organization during the academic year after having completed his or her seasons of competition during the previous academic year, it is not permissible for the student-athlete to continue to receive institutional financial aid for the remainder of the term of the award. [References: NCAA Bylaws 15.3.1.4 (institutional financial aid to professional athlete) and 15.3.1.4.1 (exception for former professional athlete).]

Recruiting/Amateurism/Precollege Expenses

2. Donations to Prospects' Educational Institutions (I). An institution may not participate in a competition during which a donation (for example, funds provided as part of a scholarship recognition program) will be provided to a high school, prep school or two-year college in conjunction with the participation of the institution or its student-athletes in the competition. The subcommittee expressed concern that such activity could result in an improper recruiting advantage for any institution that regularly participates in competitions during which donations will be provided to prospects' educational institutions.

The subcommittee noted that it is permissible for such a donation to be provided to a national federation or association that benefits prospects (for example, National Federation of State High School Associations), provided the donation is not related to the participation or performance of a particular student-athlete in the competition. [References: Bylaws 12.1.1.1.4.1 (cash or equivalent award), 13.16.1 (precollege expenses -- prohibited expenses) and 16.1.3.4 (transfer of nonpermissible award).]