National Collegiate Athletic Association

Comment

October 20, 1997


Editorial -- Newspaper failed to tell whole story

BY SAMUEL H. SMITH AND CEDRIC W. DEMPSEY

The Kansas City Star series, "Money Games: Inside the NCAA," badly misconstrues the National Collegiate Athletic Association's educational mission and ignores almost all positive elements of the NCAA enterprise. The articles accentuate the negative, dwell on alleged past misdeeds and seem purposely to confuse the reader regarding the real differences in roles and responsibilities among the NCAA as an association, the NCAA staff and the member institutions.

We're deeply disappointed. The NCAA worked cooperatively with the Star for nearly two years to enhance the Star's understanding of the Association. Much of that information was not reported.

Let us be the first to acknowledge that the NCAA is far from perfect. Indeed, there are issues on which the Association has not moved fast enough. But the NCAA is a complex and dynamic organization, committed to change and self-examination.

In that regard, the Star accents some legitimate controversial issues that are also of great ongoing concern to the Association and with which it wrestles: balancing the influence of money on intercollegiate athletics; managing resources prudently; enacting too many rules; maintaining student-athlete health and safety; and raising awareness regarding compliance with Title IX, to name a few. However, a balanced analysis of NCAA purposes, challenges and accomplishments shows that progress is being made and initiatives are ongoing.

Given the scope of the Star series, we cannot rebut every inaccuracy or instance of improper context in this article, although many are addressed and will be available via the Internet on NCAA Online (www.NCAA.org/kcstar) beginning October 17. But we must clarify the record with regard to the most serious allegations leveled at the Association by the Star that:

  • The NCAA does not adhere to its mission.

  • Money drives the Association, such that its financial practices are inconsistent with its nonprofit status and that the integrity of its investigation and compliance functions are compromised.

  • The NCAA is insensitive to matters of student-athlete welfare such as health and safety, Title IX compliance, and academic success.

    Who is the NCAA?

    There is more to know about the NCAA than the Star's characterization. The NCAA is a private, nonprofit, volunteer, membership-driven Association of more than 900 colleges and universities of every kind, along with more than 300 conferences, affiliated organizations, and corresponding individuals and institutions. It is enormously complex and diverse, and it is subject to all of the insoluble economic, social, ethical, and political pressures of any other large organization in this country. The NCAA will never be perfect; it is work in progress.

    The NCAA is its membership, and that membership regulates itself in intercollegiate athletics through enacting legislation, promulgating rules and pledging institutional compliance to those rules. The role of the approximately 270-member staff in the NCAA's headquarters is to serve the members and implement its legislation.

    What is its mission?

    These institutions and conferences have come together for one basic purpose, a purpose unchanged since it was adopted early in this century. Simply put, the mission is "to maintain intercollegiate athletics as an integral part of the educational program and the athlete as an integral part of the student body." The centrality of the student-athlete is key to the NCAA's mission. To fulfill that responsibility, the NCAA:

  • Works with underrepresented student-athletes through scholarship and intern programs for women and ethnic minorities.

  • Works closely with trainers and physicians to research and develop legislation and policies to improve the health and safety of student-athletes.

  • Conducts dozens of Youth Education through Sports programs and administers the National Youth Sports Program.

  • Works to place a comprehensive whole-person curriculum called CHAMPS/Life Skills on college campuses.

  • Conducts Title IX seminars annually to link college administrators with the U.S. Office of Civil Rights and other gender-equity experts.

  • Researches and collects data on college participation trends, graduation rates, expenses and revenues in intercollegiate athletics, effects of academics-based legislation, and compliance with federal Title IX legislation.

    All of this is in place to support the more than 323,000 student-athletes who compete in college sports at NCAA member schools each year.

    The Association also sponsors 81 championships in 22 sports annually in which more than 24,000 young men and women compete for national-championship honors.

    Revenues benefit colleges and student-athletes directly

    In any other context than that presented by the Star, the increase in NCAA revenues would be characterized as an American success story! Over the last 20 years, college sports have become increasingly popular. As a result, NCAA revenues increased from $6.6 million in 1977-78 to $267 million in 1997-98.

    Where the lion's share of the NCAA money goes is the real story. More than 85 percent, or $228 million of the $267 million in 1997-98 revenues, is returned in dollars, programs and services to the member colleges in all three divisions to support student-athletes and athletics programs. That includes nearly $40 million alone for student-athlete welfare programs such as catastrophic injury insurance ($4 million); academic enhancement programs ($15 million); a special assistance fund ($10 million) to help needy student-athletes pay for winter coats, supplies and trips home; and programs in sports science, youth development, sports agents and gambling, scholarships, and others. The $228 million also includes $47.6 million for championships travel and expenses. NCAA administrative costs for operations, programs, salary and benefits amount to only 12.5 percent of the total budget, or $32 million.

    Twenty years ago, there was little revenue distribution to the membership, none of the student-athlete assistance funds mentioned above existed, and the NCAA paid only limited travel expenses to the championships for student-athletes and coaches. There were no championship opportunities in the NCAA for women, no educational outreach programs, no youth development or professional development programs.

    Financial practices are consistent with nonprofit associations

    Notwithstanding the Star's assertions, the facts do not support the conclusion that the NCAA's tax-exempt status is jeopardized by increased revenues or by its competitive salary and benefits package. That status has been affirmed by both the courts and the IRS after close examination of the Association's financial practices. The most recent examination was a comprehensive IRS audit in 1988, covering a three-year period. Many of the issues raised in the Star articles were reviewed by the IRS and the NCAA's tax-exempt status was not challenged during the course of that audit.

    Still, the NCAA has retained James J. McGovern to advise NCAA general counsel regarding tax implications, if any, asserted by the Star. Mr. McGovern is a principal at the Big 6 accounting firm of KPMG Peat Marwick LLP and the former assistant commissioner and associate chief counsel of the IRS for tax-exempt organizations.

    Much was made in the Star series of NCAA executive compensation -- relocation costs, salary and benefits, as well as perquisites. Although Mr. McGovern notes that recent congressional legislation specifically recognizes that pay of nonprofit executives may be comparable with that of equivalent nonprofit and for-profit business corporations, NCAA salaries today are based upon compensation studies that analyze nonprofit market realities.

    The most recent study reveals, for instance, that the salary for the NCAA executive director is comparable to similar national nonprofit associations with a $270 million operating budget. In 1995, the salary range for that cohort was between $262,000 to $503,000. At $440,000 for salary AND BENEFITS, the NCAA's executive director's salary is within that range and is less than that of the former top officer of the nonprofit Newspaper Association of America, whose 1995 salary alone was $499,877.

    Relocation packages, including the purchase and sale of homes by a prospective employer, are a common recruitment tool for higher education institutions that draw from a national talent pool for chief executive officers.

    Other perquisites for NCAA employees cited in the Star series are treated as taxable income to the individual and reported to the IRS annually.

    Mr. McGovern notes additionally "that the 'perks' or employee fringe benefits discussed in the articles are typically provided by taxable or tax-exempt entities the size of the NCAA," according to the IRS fringe-benefit manual.

    NCAA investigation and compliance

    Many individuals, perhaps most, engaged in intercollegiate athletics believe there are too many rules, but even the Star's suggested reforms would result in more rules. So, the task of deregulation is not easy.

    There are fundamental, Association-adopted principles that underpin the enforcement function of the Association.

    One is the "principle of institutional control and responsibility," that each member institution's chief executive officer shall control its intercollegiate athletics program in compliance with the Association's rules. Another is the "principle of competitive equity" that seeks to assure that student-athletes and institutions will not be prevented unfairly from achieving the benefits inherent in participation in intercollegiate athletics.

    It is true that television bans have declined in recent years; the decline is intentional. The Committee on Infractions, a membership peer group responsible for the enforcement process, moved away from such bans because they impact other schools and student-athletes not in violation. Instead, the committee imposes scholarship reductions because they significantly impact an athletics program and the team's competitiveness.

    The Star criticized the Committee on Infractions for using the so-called "death penalty" sanction for repeat violators only once since adopted in 1985. This sanction can prohibit some or all outside sports competition at a school and eliminate recruiting and scholarships for a designated period. It is only one of the penalties available in cases involving repeat violations by a school within a five-year period.

    The "death penalty" can devastate an athletics program. That is NOT a goal of the enforcement program. There are other penalties available for repeat violators. They ARE used. However, the committee will use the full repeat violator rule when appropriate.

    NCAA commitment to health and safety, Title IX and academic success

    Student-athlete health and safety: Young people in the prime of their lives should not be seriously injured while playing sports. Yet it must also be understood that participation in sports brings with it an assumption of risk that cannot be totally eliminated.

    To minimize those risks, the NCAA created a full-time sports science staff in 1986. Over the last decade, Association accomplishments in student-athlete safety include the establishment of drug-testing programs, educational programs to address eating disorders and underage drinking and driving, guidelines on the risks of HIV transmission, catastrophic health insurance and the National Injury Surveillance System.

    The NCAA also initiated the student-athlete assistance fund to pay for medical care and insurance. The NCAA Sports Medicine Handbook was put in the hands of trainers and team physicians to provide a set of guidelines for adequate medical supervision in intercollegiate athletics. Enhanced awareness and change has occurred at the macro level. Individual athletics departments are expected to translate NCAA guidelines into their policies.

    Certification and gender equity: The Star completely disregarded the progress made in Title IX compliance in recent years. In the last five years in Division I, the proportion of women participating in college sports has increased by six percentage points, operating budgets for women's programs have increased by 90 percent, recruiting budgets have gone up by 10 percentage points, and scholarship dollars have grown by seven points. Progress is also evident in Divisions II and III. This isn't ideal, but it is progress.

    It comes, at least in part, from NCAA efforts to raise awareness and recommend solutions. Since 1994, the Association:

  • Produced six Title IX seminars.

  • Created a Title IX resource center.

  • Produced two editions of "Achieving Gender Equity: A Basic Guide to Title IX."

    The fact is that Title IX is the law of the land. Every institution has an obligation to comply. The NCAA cannot and should not seek to enforce federal law.

    Student-athlete academic success: The heart of academic reform seeks to ensure that student-athletes who complete their eligibility at an NCAA member school are in an enhanced position to earn their degree. In a lengthy article that isolates the trials of one prominent student-athlete, the Star incorrectly suggests that his case represents the norm. In fact, more student-athletes are graduating from college today than ever before. On average, Division I student-athletes graduate at a higher rate than the rest of the student body -- 58 percent for student-athletes compared to 56 percent for the overall student body.

    To be sure, intercollegiate athletics must be vigilant with regard to student-athlete academic success. It is vital that individuals entering college be prepared to do college-level work. The NCAA Initial-Eligibility Clearinghouse was established to facilitate those efforts. There is room for improvement but this is a pioneering effort. It is the first endeavor of its kind.

    Conclusion

    Over the 90-year life of the NCAA, great strides have been made in intercollegiate athletics. Yet, we are not complacent.

    There are thorny ongoing issues with which we struggle. We are mindful that the very success associated with the dramatic increase in revenues brings both opportunities, challenges and the duty to preserve the integrity of intercollegiate athletics while discharging our fiduciary responsibilities.

    The NCAA must remain true to its mission and high ideals: first and foremost, the value of education and sound academic standards; the value of sportsmanship that builds character, promotes civility and prepares young people for leadership within the broader society; the importance of ethical conduct in every endeavor; the principle of fairness and the imperative of respect and appreciation of differences among us.

    The NCAA is committed to the success of the student-athlete, both in the classroom and on the field of play. The thrust of our programs and the investment of the Association's revenues benefit more than 323,000 young people directly and indirectly. Enriching the student-athlete's collegiate experience is our goal.

    Samuel H. Smith is president of Washington State University and chair of the NCAA Executive Committee. Cedric W. Dempsey is executive director of the NCAA.


    Letter to the Editor -- Women runners capable of more distance

    While Jack Reed makes a heartfelt and compelling statement against the increase to 6K for the NCAA Divisions I and II Women's Cross Country Championships (The NCAA News, October 6), his prediction of gloom and doom is overstated and unwarranted.

    While we are all concerned for women's health issues, an increase of 1,000 meters to the racing distance should not be a call to arms. For years, society has had a prejudiced view toward women's athletics (I am obviously not inferring that Mr. Reed does), and it is time to realize women are capable of much more than was ever thought before.

    Witness the addition of the women's Olympic marathon only as recently as 1984 and the 5,000 to the Olympics only this last summer in Atlanta, and one can clearly see the archaic thought process of our society, and more importantly, our track and field governing bodies.

    I believe you will find a number of women looking forward to the increased distance. In fact, I believe a number of members of our cross country team would be shocked at the insinuation that they are not mature enough or strong enough to run the increased distance.

    Encouraging our athletes and our coaches to utilize the correct balance of physical and mental training is what we all seek. And while I do not agree with Mr. Reed's analysis, I do agree with him that as coaches responsible for the development of young women, we need to continue to push for higher levels of communication and education on those issues specific to the developing woman athlete.

    Alex Accetta
    Cross Country Coach
    Fort Lewis College


    Opinions -- CBA approach a sensible alternative to existing model?

    Steve Patterson, commissioner
    Continental Basketball Association

    The Hartford Courant

    Discussing the Continental Basketball Association's proposal to professionalize certain elite athletes coming out of high school:

    "Look, I was a college basketball coach for 10 years. I was a Division I head coach at Arizona State University for five years. I've been on the other side of the fence. I've recruited high-school players. I've recruited high-school players who didn't have any interest at all in going to school. I've looked their parents in the eye and said I'd make sure their kids would get to class. I had assistant coaches who were rolling kids out of bed at 7 in the morning and dragging them by their ears to class, kicking and screaming. That's no fun at all. I don't know anyone who enjoys that process. Shouldn't there be an intelligent alternative for those truly talented kids who really don't want to go to class, who really don't want to get their education at this point in their lives?"

    Pat Kennedy, men's basketball coach
    DePaul University

    Chicago Tribune

    "I think we as coaches saw this coming the last eight to 10 years, but I think it will be another eight to 10 years before we see the effects of it.

    "We have to be big boys about it and realize it. We see it in pro baseball and golf and tennis."

    James E. Delany, commissioner
    Big Ten Conference

    Chicago Tribune

    "I know some people say the sky is falling, but I don't think the sky is falling at all."

    Wayne McClain, boys basketball coach
    Peoria (Illinois) Manual High School

    Chicago Tribune

    "I don't want my players to think they don't have to excel academically because of an outlet like the CBA, because we know all those things can be short-lived. I think it gives them more incentive to be more apathetic."

    Learning disabilities

    Terry MacDonald, learning specialist
    Syracuse University athletics department

    Disability Compliance for Higher Education

    "I really think that we need to look at ways to network more carefully among offices. Athletics support services in many places operate independently of other support services at the university and vice versa. Now we're being forced to have more of a cooperative venture, sometimes they don't necessarily speak the same language."

    Title IX

    Kate Obeirne, writer
    National Review

    "The problem is that, while enjoying enormous educational success, women are not playing sports to the same extent as men. The number of female athletes has increased dramatically since the early '70s, when young women were not encouraged to play competitive sports and only 300,000 high-school girls did....

    "Today 2.4 million high-school girls enjoy the benefits of competitive sports. However, in both high school and college, the proportion of female students playing competitively has, after an initial surge, leveled off to less than 40 percent. A sensible person might conclude that this reflects women's natural inclination to be less interested in sports. After all, men made up 60 percent of the TV audience for the women's NCAA basketball finals. And female students are plenty engaged in other activities. Studies show that high-school girls are more involved than boys in nonsports extracurricular activities like choir, band, and debate and drama clubs."

    Football

    Editorial
    Greensboro News and Record

    "The powers that be need to remember that football, particularly at the high-school level, is a game, and it's just a game. Occasionally enjoyable to watch, and often more fun to play in the backyard than in a stadium. But it doesn't belong in the center of the universe; it's a satellite.

    "From that perspective, this is a good time for college administrators to loosen the grip that big money -- whether provided by booster clubs, endorsements or television contracts -- has on the schools. And if a reduction in the emphasis on football makes the social structure in high school more equitable, that's all to the better.

    "Does football still matter? Of course it matters. But not nearly as much as some people think it does."

    Binge drinking

    Henry Wechsler
    Principal investigator, college alcohol study
    Harvard School of Public Health

    The Boston Globe

    Discussing binge drinking among college students:

    "We can no longer be shocked at what is happening on many college campuses and in many fraternities. This is no longer a time merely to form a committee to study the situation. It is time to act.

    "Action needs to be taken on many fronts: the college president's office, the fraternity and sorority system, the athletics department, community licensing boards and, foremost, those students who are sick of the drinking they see around them.

    "Parents who pay for college tuitions should demand a safe environment for their children. Binge drinking need not remain an integral part of college life.

    "University presidents must make it their responsibility to produce change."

    Basketball recruiting

    Discussing a National Association of Basketball Coaches proposal, supported by the NCAA Academics/Eligibility/Compliance Cabinet, that would alter the role of camps in the recruiting process by creating eight regional camps conducted by USA Basketball:

    Bob Oliva, boys basketball coach
    Christ the King High School (New York)

    New York Daily News

    "There's a number of misfits out there who ill-advise the kids. This will lessen that. It's about time that the NCAA put some of their money into putting things in the proper hands -- the high-school coaches."

    Gary Charles, coach
    AAU Long Island Panthers

    New York Daily News

    "I don't want to hear anything about me not being an educator. I know plenty of high-school coaches that take the job because it pays them extra and then they go home. Where are they when a kid needs something after the season?

    "Even with this, you think we won't be involved with kids? The reason kids go to different parks to play ball is why they'll keep going to different tournaments -- competition. Kids will always want to play against good players."