The official minutes of the University of South Carolina Board of Trustees are maintained by the Secretary of the Board. Certified copies of minutes may be requested by contacting the Board of Trustees’ Office. Electronic or other copies of original minutes are not official Board of Trustees' documents.

The Intercollegiate Activities Committee of the University of South Carolina met Thursday, May 24, 2001, at 11:00 a.m. in the Carolina Plaza Board Room.

Members present were: Mr. Arthur S. Bahnmuller; Mr. James Bradley; Mr. Alexander English; Mr. Miles Loadholt; Mr. J. DuPre Miller; and Mr. Herbert C. Adams, Board Vice Chairman. Trustees absent were: Mr. Toney J. Lister, Chairman; Mr. Michael J. Mungo; Mr. M. Wayne Staton; Mr. Othniel H. Wienges, Jr.; and Mr. Mack I. Whittle, Jr., Board Chairman. Mr. William C. Hubbard was also present.

Others present were: President John M. Palms; Secretary Thomas L. Stepp; Executive Vice President for Academic Affairs and Provost Jerome D. Odom; Vice President and Chief Operating Officer J. Lyles Glenn; Vice President for Human Resources Jane M. Jameson; Vice President for Student and Alumni Services Dennis A. Pruitt; Vice President for Research William C. Harris; Vice President for Information Technology and Chief Information Officer William F. Hogue; Vice Provost and Executive Dean for Regional Campuses Chris P. Plyler; Chancellor of USC Aiken Thomas L. Hallman; Legal Counsel Walter (Terry) H. Parham; Director of Athletics Michael B. McGee; Executive Director of the Office of Foundations and NCAA/SEC Representative Susie H. VanHuss; Chairman of the University Athletics Advisory Committee Peter J. Graham; Gamecock Club Executive Committee Chairman Dean Flansburg; President of the USC Letterman's Association Otis Morris; Coach of the USC Men's Basketball Team Dave Odom; Assistant Athletics Director Brad Edwards; Senior Associate Athletics Director John T. Moore; Director of Public Affairs Russell McKinney and members of the media.

Mr. Bahnmuller called the meeting to order and invited those present to introduce themselves. Mr. McKinney introduced members of the media who were in attendance. Mr. Bahnmuller stated that notice of the meeting had been posted and the press notified as required by the Freedom of Information Act; the agenda and supporting materials had been circulated to members of the Committee; and a quorum was present to conduct business.

Mr. Bahnmuller recognized Dr. McGee who requested the Committee's permission to formally introduce Dave Odom, the newly-hired Head Men's Basketball Coach.

Mr. Odom initially thanked Committee members for the honor of speaking with them commenting that his becoming a member of the University of South Carolina family had been a great opportunity for him from a basketball, an athletic, and an academic standpoint. He assured the Committee that he would be "ever mindful of the opportunities that the University offers" during the recruiting process. He would seek athletes who were serious about their education as well as the various opportunities for growth as individuals and basketball players while representing the University in a very public forum.

Mr. Odom expressed excitement regarding the new basketball arena explaining that this building would be "the second of its kind" he would have the opportunity to open even though he had never been involved in the planning process. He also believed that this arena would "take on a tremendously positive role in our recruitment and our development of a basketball program here at the University." As a final thought, Mr. Odom anticipated an outstanding final basketball season in the Coliseum--a fitting conclusion to the great heritage and tradition which had been established there through the years.

Before addressing the Athletics Department budget, Dr. McGee briefly discussed three athletic-related events for the Committee. For the first time, he explained, the University had hosted the SEC Track Meet, an event which had involved the assistance of more than 200 people; many of those individuals had been University of South Carolina staff members who had volunteered their services. "The Conference office said it was one of the best track meets that the Conference has enjoyed." Secondly, Dr. McGee informed the Committee that the baseball regionals would be held at Carolina during the upcoming weekend. And, finally, Dr. McGee explained that he had accompanied Coach Lou Holtz on a USO tour--Coach Holtz's seventh tour--to Bahrain, two air force bases in Kuwait, and other places in the Middle East. He stated that USO officials "could not remember anyone who was better received than Coach Holtz." He concluded by opining, "I doubt whether anyone stands higher among at least the United States Air Force right now than the Gamecocks."

1. Department of Athletics Budget: Dr. McGee reviewed the Athletics Department budget as presented in the materials distributed to Committee members. He initially directed Committee attention to the overview of the proposed 2001-2002 Athletics Department's budget, stating that increased football and baseball ticket sales and the addition of another home football game would increase departmental revenue by 12.09 percent from the previous fiscal year. Dr. McGee also indicated that Gamecock Club contributions would increase by $800,000, reflecting the addition of approximately 1,100 new members in the Gamecock Club. The Southeastern Conference share expanded by $1 million due to the new network TV contractual agreements.

   Dr. McGee summarized operational expenditures which were projected to rise by 5.77 percent. Due to approved salary increases of $511,000 during FY 2000-2001, personnel requests would only increase by 6.8 percent for FY 2001-2002. Other increases included a 2.5 percent increase for classified salaries; a $1,000 increase for each non-classified employee; state benefits costs by 2.69 percent; grants-in-aid expenditures by 12.3 percent; team travel by 6.24 percent; recruiting travel by 4.69 percent; game services by 18.41 percent; supplies and equipment by 1.43 percent; general and administrative expenditures by 6.84 percent which included a $250,000 payment to the former men's basketball coach; guarantees by 13.76 percent; and the football operational budget would increase by 8.74 percent.

   Dr. McGee also presented a summary of the Athletics Department transfers to the University of South Carolina for FY 2001-2002. These athletic revenues, which included Gamecock Club donations, were non-appropriated state funds deposited with the University. "We in Athletics are particularly pleased to be in a position to play a role in providing some additional support to the University." This year, the Athletics Department would provide $754,000 for University academic scholarships.

   Dr. McGee noted that the projected academic support services budget of $800,000 did not include any facility allocations; this figure reflected programming and salaries exclusively. The tutoring budget, for example, was approaching $200,000 a year with virtually all tutors provided from a pool of undergraduate and graduate students.

   Dr. McGee specifically addressed departmental activity involving the USC Basketball Arena. He stressed the fact that the Arena FF&E (Furniture, Fixtures, and Equipment) costs of $2.2 million had been loaded into the Athletics Department's budget and would be amortized over the next two fiscal years. Dr. McGee anticipated a one-time startup cost of $1 million for that project which would be included in the 2003 budget.

   Dr. McGee clarified the 2001-2002 budget summary analysis indicating that the total revenue figure did not include negotiated broadcast revenue payments given to the various coaches, the state admissions tax which was anticipated to exceed $500,000 next year, and the $3.00 bond fee added to each football ticket which should generate $1.36 million; as a result, total revenues could indicate a figure of $34 million. A surplus of $263,000 was expected at the end of FY 2001-2002.

   Mr. Wienges asked for information regarding credit card charges. Dr. McGee replied that an individual could purchase athletic events tickets via credit card; the Athletics Department was required to pay 2.5 points for the use of VISA and MasterCard.

   Mr. Stepp indicated that this proposed Athletics Department budget for FY 2001-2002 was received for information and would be presented to the Executive Committee for final approval.

2. Athletic Director's Report: This agenda item was incorporated into Dr. McGee's presentation of the Department of Athletics Budget and prior comments.

3. Basketball Ticket Prices 2001-2002: Dr. McGee stated that the Athletic Department's basketball ticket price for conference games during the last two years had been $13.00; the Clemson home game ticket price was $15.00. He requested that the non-conference basketball ticket price of $10.00 be raised to $13.00 which would generate approximately $275,000 per sell-out game. In comparison to other SEC members' basketball ticket prices, Dr. McGee believed that the increase was appropriate.

   Mr. Miller moved approval of the basketball ticket price increase from $10.00 to $13.00 for non-conference games as described in the materials distributed for the meeting. Mr. English seconded the motion. The vote was taken, and the motion carried.

Mr. Adams thanked Dr. McGee for providing Committee members the Athletics Department's financial statements on a quarterly basis "which allows us not to ever be surprised financially by the Athletics Department." On another note, Mr. English and Mr. Hubbard commended Coach Curtis Frye for the excellent manner in which the SEC Track Meet was held.

There were no other matters to come before the Committee, and Mr. Bahnmuller declared the meeting adjourned at 11:45 a.m.

Respectfully submitted,
Thomas L. Stepp
Secretary