National Collegiate Athletic Association

The NCAA News - News and Features

January 12, 1998

Legislative assistance

1998 Column No 2
Past performance as a basis
for future expenses

Division I institutions should note that the Division I Academics/Eligibility/Compliance Cabinet Subcommittee on Legislative Review/Interpretations noted that pursuant to NCAA Bylaw 12.1.1.1.4.3, it is permissible for an individual to receive expenses from an outside amateur sports team or organization not to exceed actual and necessary travel, room and board expenses, and apparel and equipment to represent the sports team or organization in competition and any practice held in preparation for such competition. Under such circumstances, practice must be conducted in a continuous time period preceding the competition except for practice sessions conducted by a national team, which occasionally may be interrupted for specific periods of time preceding the competition. Further, pursuant to 12.1.1.1.5, an individual who receives any payment, including actual and necessary expenses, conditioned on the individual's or team's place finish or performance or given on an incentive basis would jeopardize his or her intercollegiate eligibility in a particular sport.

The subcommittee confirmed that the provisions of 12.1.1.1.5 specifically relate to performance in the current competition or event as opposed to qualifying for the receipt of actual and necessary expenses for a future competition or event. In other words, an individual would jeopardize his or her intercollegiate eligibility if he or she accepted any payment, including actual and necessary expenses, conditioned on the individual's or team's place finish or performance in that particular event; however, the individual's or team's place finish may serve as a basis for receiving actual and necessary expenses for a future competition or event. It was the subcommittee's opinion that the application of NCAA regulations regarding this issue is fairly well known, not only by the membership but by most of the national governing bodies and other nonprofessional organizations sponsoring competitions. It noted that in many sports, multitiered competitions are conducted in which it is commonplace for a specified number of individuals or teams based on performance in the previous tier to receive actual and necessary expenses to advance to the next tier of the competition. Further, nonprofessional organizations that sponsor competitions often provide actual and necessary expenses to participating individuals based on the individuals' past performance (e.g., ranking, place finish in a previous event).

This material was provided by the membership services staff as an aid to member institutions. If an institution has a question or comment regarding this column, such correspondence should be directed to Richard C. Perko or Kristen L. Davis, membership services representatives, at the NCAA national office. This information is available on the Collegiate Sports Network.