Intercollegiate Athletics Issues Quiz #2

Knight-Newhouse College Athletics Database

Organization of academics and athletics leaders that seeks to reform college sports. One of its projects is tracking college athletic finances to provide greater transparency regarding how schools make and spend money on sports.

Elements of Knight-Newhouse College Athletics Database

Total revenue, corporate sponsorship/advertising/licensing, donor contributions, competition guarantees, conference/NCAA distributions/media rights/post-season football, ticket sales, institutional/government support, and student fees

Equity in Athletics Disclosure Act (EADA)

Requires all colleges and universities that participate in a Title IV (a federal student financial aid program) and have an intercollegiate athletic program to submit an annual report to the Department of Education on athletic participation, staffing, and revenues and expenses, by men's and women's teams.

Three Largest Expense Areas in College Sport

- Personnel and benefits

• Debt service

• Grants-in-aid (scholarships)

Five largest revenue components in college sport

- Television Rights

- School and Gov Funding

- School Raised Donor Funds

- Ticket Sales

- Student Fees

Other Revenue

Concessions/Guarantee Games/Conference Tournaments/Facility Rentals/Interest Revenue/Sponsorships/Apparel Agreements/Licensing/ Endowments/Parking/Facility Income (e.g., golf courses)/Museums and Halls of Fame/Camps and Clinics/Websites

Other Expenses

- Personnel and benefits

• Debt service

• Grants-in-aid (scholarships)

• University transfers

• Supplies

• Clothing

• Equipment

• Communications

• Facility maintenance and repair

• Capital projects

• Utilities

• Space rental

• Professional services

• Travel

• Meals and nutrition• Recruiting

• Game day expenses

• University overhead

• Guarantee games

• Officials1

Championship Tournament Shares

Based on conference participation in championships for previous six years.

Men's basketball example:

◦ Based on "units" system

◦ Teams earn 1 unit for each game played before the final

◦ 132 units per tournament

◦ Units are awarded to conferences, not teams

◦ Conferences determine how to distribute money among members

- Rising tuition and fees

◦ Compliance with NCAA and government mandates

◦ Cost of financing

Uncontrollable Costs...

- Full cost-of-attendance

◦ Revenue sharing

◦ Rising coaching salaries

◦ Facilities arms race

Controllable Costs...

- Economic and financial climate

• Changing donor priorities (NIL)

• Athletes' rights movement

• Rising costs

• Public divestment in higher education

• Increasing oversight

• Growing wealth gap

• Fuzzy accounting practices

• Revenue sharing• Declining demand?

Current Financial Problems...

NCAA Volunteer Membership

Universities are volunteer members of the NCAA and their conference. Explicit rules and regulations voted on by the membership govern the actions of university athletics departments.

NCAA Self-Monitoring

The NCAA charges each institution with the governance and enforcement of these rules on campus.

1. Each NCAA school must monitor their athletic programs, its representatives and athletes to ensure compliance.

2. Each NCAA school has an obligation to report all instances of noncompliance to the Association in a timely manner.

3. Everyone must cooperate with NCAA enforcement staff and COI representatives.

Three Compliance Responsibilities...

Education-> Policies-> Monitoring -> Enforcement

Elements of the Compliance Pyramid...

Bylaws-> Investigation & Processing -> Resolution & Appeal

- Investigate in a thorough and timely manner all allegations about rule violations

- Apply consistent and appropriate penalties to any violations found

- Ensure all corrective actions are completed

Steps of enforcement process...

Level 1 NCAA Violation

Violations that seriously undermine or threaten the integrity of the NCAA collegiate model as set forth in the Constitution and bylaws, including any violation that provides or is intended to provide a substantial or extensive recruiting, competitive or other advantage, or a substantial or extensive impermissible benefit.

Level 2 NCAA Violation

Violations that provide or are intended to provide more than a minimal but less than a substantial or extensive recruiting, competitive or other advantage; includes more than a minimal but less than a substantial or extensive impermissible benefit; or involves conduct that may compromise the integrity of the NCAA collegiate model as set forth in the Constitution and bylaws.

Level 3 NCAA Violation

Violations that are isolated or limited in nature; provide no more than a minimal recruiting, competitive or other advantage; and do not include more than a minimal impermissible benefit. Multiple Level IV violations may collectively be considered a breach of conduct.

COI

Independent group of 19 (up to 24) representatives from member schools and the public (e.g., attorneys, FARs, former coaches). Review information presented in infractions hearing and decide whether violation occurred.

- Has power to issue findings of fact and power to sanction an institution

- Phone calls/emails/texts to pre-contactable prospects

• Student-athletes tweeting at prospects

• Practice hour violations

Common Level 3 Violations...

- Lack of institutional control.

- Academic fraud.

- Failure to cooperate in an NCAA enforcement investigation.

- Individual unethical or dishonest conduct.

- Head coach responsibility violation by a head coach resulting from an underlying Level I violation by an individual within the sport program.

Common Level 1 Violations...

- Violations that do not rise to the level of Level I violations and are more serious than Level III violations.

- Failure to monitor.

- Systemic violations that do not amount to a lack of institutional control.

- Multiple recruiting, financial aid, or eligibility violations that do not amount. to a lack of institutional control.

- Collective Level III violations.

Common Level 2 Violations...

Changes made in OSU compliance office

Increased monitoring of:

• Student-athletes cars, housing, and employment

• Student-athlete interactions with boosters

• Student-athlete participation in charity events

• Office of Athletic Compliance housed under Office of University Compliance and Integrity

• Staff size doubled, including a compliance officer located in football complex

• Enhanced rules education

Logo Usage, Logo Rights/ Official Designation (Proud Partner)/ Trademarks and Licensing

Intellectual Property Elements...

Key Marketing Technologies

Shoflo

•Game Scripting

Daktronics

•Videoboard

Challenges of Sport Marketing

- Attendance Trends - Fans show up when we win, but how do we engage them we don't?

• Balancing Tradition with Innovation - Keeping old heads happy, while still evolving the experience

• Resource Limitations - Making magic happen on a budget

• Game-Day Execution - Inevitable Chaos

• Sponsorships - Some elements enhance the experiences, others...not so much

• Fans - Always have an opinion

Collegiate Ticketing Hot Topics

1. Secondary Market, Ticket Brokers, Ticket Fraud

2. Nationwide Declining Student Attendance (You Guys!)

3. Streaming/TV

4. Conference Realignment, NIL, Transfers

March

When does event management start planning for baseball season?

Student athlete experience-> Esports Curriculum-> Esports Recreation->

Intercollegiate E-sports Elements...

National Association of Collegiate Esports

Over 300 programs across North America have had NACE membership since 2016.

• Over 260 schools across the US & Canada compete for championships every year across a variety of esports titles.

• Varsity Esports Program by NACE: 1) Dedicated staff, 2) Dedicated space, 3) Recruitment, 4) Officially recognized,5) Accreditation, 6) Rules enforcement National Association of Collegiate Esports (NACE)