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Division I group proposes 2001 as revenue benchmark

Issue relates to 1996 Proposal No. 7-2

Proposal No. 7-2, which was adopted, 321-4, at the 1996 Convention, provided that the proportion of total revenue allocated among the funds of the revenue-distribution plan (basketball, sports-sponsorship, grants-in-aid, special assistance, academic-enhancement and conference grant) "shall be as it existed at the time of the adoption of this legislation."

At the time the legislation was adopted, however, concern had been expressed that the language in the proposal might not provide the Association with enough flexibility to manage the budget.

Kenneth A. Shaw, chancellor of Syracuse University and chair of the Division I Task Force to Review the NCAA Membership Structure, noted on the Convention floor that the NCAA Transition Oversight Committee understood "that the sponsors of this amendment have agreed that any adjustment or fine-tuning to this revenue guarantee may be made during the Division I governance system's transition period, if necessary."

Also, at its December 1995 meeting, the NCAA Executive Committee expressed concern that "the amendment may be problematic in that it specified that if any component of the revenue distribution was increased, all other components must be increased proportionally" and that it "would remove the budgeting flexibility in Division I that the current Executive Committee has."

In another action at its December meeting, the Executive Committee agreed to make available to the membership revenue-distribution projections based on increasing rights fees from CBS through the 2001-02 fiscal year.

Those projections, which were developed before the approval of Proposal No. 7-2, distribute more of the additional rights fees allocated to the revenue-distribution plan through the basketball and the broad-based funds (sports-sponsorship and grants-in-aid). The academic-enhancement and special assistance funds would not increase as much.

The Division I Management Council Transition Team, which met September 10-11, concluded that Division I should abide by the Executive Committee's projections since conferences have based their own budget projections on those figures. It also recommended that the NCAA Council use its constitutional authority to modify legislation to conform to its intent by making 2001-02 the benchmark year for the Division I revenue guarantee set forth in Constitution 4.01.2.2.2.

The NCAA Presidents Commission and the Council will consider the matter at their September 24-25 and October 7-9 meetings, respectively.

The Division I Management Council Transition Team reviewed a number of other items relating to membership restructuring:

* Regarding the legislative process, voted to support Proposal Nos. 1-23 and 1-24 (as they appear in the Initial Publication of Proposed Legislation), which specify that Division I legislation may be sponsored by any member of the Division I Board of Directors or Management Council and that the Division I membership may override the Division I Management Council's failure to act on legislative proposals in areas delegated to it by the Division I Board of Directors. Sponsors of Proposal Nos. 1-19, 1-20 and 1-22 -- proposals that would permit the membership to call special legislative Conventions under certain conditions -- have indicated that Nos. 1-23 and 1-24 address the concerns that led to the three proposals and that they will withdraw Nos. 1-19, 1-20 and 1-22 if Nos. 1-23 and 1-24 are adopted.

* Voted to support Proposal No. 1-12, which would allow each member conference to designate a permanent alternate who would participate in any Management Council meeting at which the regular representative was unable to participate for a compelling reason. The Transition Board of Directors has recommended that an alternate should be able to participate only if the regular representative is unable to attend successive meetings.

* Supported a Council proposal that specifies that the chairs of the Division I Management Council and Board of Directors shall serve two-year nonrenewable terms; that at least once in three term rotations, one of the chairs of the Board or Management Council shall be from a Division I-AA or I-AAA conference; and that among the chairs of the Board, the Management Council and cabinets, there shall be at least one representative from a conference in each subdivision at all times.

* Supported Proposal No. 1-5, which would affirm that not more than one national championship may be conducted in each men's and women's Division I sport except football.

* Reaffirmed its earlier position that student-athletes who participate on the Division I Management Council would not be permitted to vote.

OTHER HIGHLIGHTS

Division I Management Council Transition Team
September 10-11/Atlanta

* Discussed diversity of representation on the Division I Management Council and noted that a subcommittee of the Division I Board of Directors Transition Team is currently studying the issue. That subcommittee is to make its report in conjunction with the NCAA Presidents Commission meeting later this month.

* Noted that other Division I governance bodies support its proposal for the four-cabinet Division I substructure. To clarify one point, the Transition Management Council noted that while the cabinets should mirror the overall Management Council's 2-1-1 ratio of Division I-A, I-AA and I-AAA membership, the same ratio should not necessarily apply to cabinet subcommittees.

* Advised Division I conferences represented in the new structure to select their initial Board and Management Council representatives before the 1997 Convention. Also, the Transition Management Council encouraged Division I conferences to begin considering possible nominees for service on the four cabinets.