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University of South Carolina

BOARD OF TRUSTEES

Intercollegiate Activities Committee

May 25, 2000

The Intercollegiate Activities Committee of the University of South Carolina Board of Trustees met on Thursday, May 25, 2000, at 11:00 a.m. in Room 107-C of the Osborne Administration Building.

Members present were: Mr. Toney J. Lister, Chairman; Mr. Arthur S. Bahnmuller; Mr. Miles Loadholt; Mr. J. DuPre Miller; Mr. Michael J. Mungo; Mr. Othniel H. Wienges, Jr.; Mr. William C. Hubbard, Board Chairman; and Mr. Mack I. Whittle, Jr., Board Vice Chairman. Committee member Mr. M. Wayne Staton was absent. Other members present were: Mr. Herbert C. Adams; Mr. Robert N. McLellan; and Mr. Alexander English.

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 Business and Finance John L. Finan; Vice President for Student and Alumni Services Dennis A. Pruitt; Vice President for Human Resources Jane M. Jameson; Vice President for Development Charles D. Phlegar; Vice Provost and Executive Dean for Regional Campuses and Continuing Education Chris P. Plyler; General Counsel Walter (Terry) H. Parham; Director of Athletics Michael B. McGee; Associate Athletics Director Dan Radakovich; Executive Director for University Foundations Susie VanHuss; Director of the Department of Internal Audit Alton McCoy; Chair of the University Athletics Advisory Committee Peter J. Graham; President of the USC Letterman's Association Mike McCabe; Chairman of the Executive Committee of the Gamecock Club Dean Flansburg; Director of Public Affairs Russell McKinney; representative from Media Relations Jason Snyder; and members of the media.

Chairman Lister welcomed Dean Flansburg and Mike McCabe. Chairman Lister then welcomed all others to the meeting and invited those present to introduce themselves. Mr. Snyder introduced the representatives from the press. Chairman Lister then stated that notice of the meeting had been posted and the press notified of the meeting as required by the Freedom of Information Act; the agenda and supporting materials had been circulated to the Committee; and a quorum was present.

I. Men's Basketball Ticket Prices: Dr. McGee presented a breakdown of basketball prices for the upcoming season. The Athletics Department recommended increasing the ticket prices for conference games from $12 to $13 and for the Clemson game from $12 to $15. The prices were consistent with the University's general market area, and the Athletics Department had not adjusted ticket prices since the 1996-97 season.

Chairman Lister called for a motion to approve the requested increase in men's basketball conference game tickets from $12 to $13 and in the Carolina v. Clemson basketball game from $12 to $15 to begin with the 2000-2001 basketball season. Mr. Mungo moved approval of the increase in men's basketball ticket prices as presented. Mr. Bahnmuller seconded the motion. The vote was taken, and the motion carried.

II. Student-Athletes Academic Graduation Performance: Dr. McGee referred to the Academic Spring 2000 Update that would be released to the 2000 American Football Coaches Association (AFCA) Graduation Rate Survey. The USC graduation rate for football was 75 percent with a criteria by the AFCA Graduation Rate of 70 percent needed for honorable mention. USC's graduation rate for the student-athletes was 69 percent--as opposed to the 59 percent last year. For the first time, the University's student-athletes overall GPA exceeded 2.834, and 36 students had graduated during the spring 2000 commencement exercises.

Chairman Lister commended the athletes, support staff, and faculty. This report was received for information.

III. FY 2001-Athletics Department Budget: Dr. McGee stated that the total revenue for the Athletics Department was in excess of $31 million. This was an operational budget which did not include the bond payments in excess of $1.2 million, Host Communications revenue of approximately $1.4 million, and the admission tax paid to the state of $450,000.

Mr. Mungo questioned the omission from the budget of the bond payments and Dr. McGee replied this was an operation budget that had historically been arranged without including the bond payments within it.

Mr. Whittle asked how University revenues compared to other SEC schools. Dr. McGee responded that it was difficult to compare "apples to apples" but that two institutions, Florida and Tennessee, had in excess of $40 million in revenue.

Dr. McGee continued to outline specific aspects of the budget. The Athletics Department was totally self-sufficient and funded all its direct and indirect expenses. The department also provided funds to the University for the general fund. All revenues, including Gamecock Club donations, were deposited with the University.

Mr. Wienges questioned the C300 Account. Mr. Radakovich stated that C300 accounts were used for specific activities such as tournaments. At the end of the year, if there was an excess in revenue over expenses, the funds were closed out. Mr. Wienges questioned the disposition of the balance of the ticket price for the Clemson game. Dr. McGee explained that the additional fee of $5 for the Clemson ticket was allocated for an academic scholarship fund. During the year 2000, it was increased to $7, and in four years, the fee would increase to $10. Mr. Mungo commended Mr. Wienges for initiating this scholarship concept years ago.

The Athletics Department had a five year contract with Host Communications. Mr. Wienges opined that the Host Communications arrangements provided poor coverage in parts of the state, and Dr. McGee replied that was an ongoing concern within the Athletics Department.

Contractual services referred to compensation for retired employees who were working for the Athletics Department on a very limited basis.

Mr. Adams stated that the Athletics Department budget should include a sub-budget of the Gamecock Club. The University made an agreement in 1983-84 with the Gamecock Club Board of Directors to present a budget of revenues and expenses to the Athletics Department. Dr. McGee reported that the Athletics Department had met with the Gamecock Club Board of Directors during the previous 14 days, and the Athletics Department would provide the Gamecock Club budget to the Board.

The report was received as information.

IV. NCAA Basketball Recruiting Committee and the Report on NCAA Rule Changes: Dr. VanHuss stated that each year the NCAA Rule Book was revised. The SEC had to be as strict as the NCAA.

The four broad categories of the legislation, which were an ultra-simplified version of a complex system were: 1) legislation ensuring academic integrity; 2) legislation fostering student-athlete welfare; 3) legislation ensuring competitive equity; and 4) legislation relating to governance, administration and rule enforcement. Legislation in 1999 consisted of the introduction of 132 by-laws, which were refinements rather than significant changes to the present legislation. The most significant and controversial bylaw revisions currently under consideration were basketball issues and amateurism issues.

Dr. VanHuss reported that the perspective of the faculty representative was a commitment to integrity, academics, excellent environment, and a team approach to athletics.

Regarding the above mentioned controversial bylaw revision, Dr. McGee reported that the NCAA established a task force to work on the issues of basket-ball. The task force was made up of presidents, commissioners, and senior women administrators and had ten meetings in one year. The task force had developed a number of proposals. The most significant bylaw revisions currently under consideration were allowing student-athletes to accept prize money based on place finish without losing eligibility, allowing student-athletes to enter the draft or be drafted without losing amateur status, and allowing student-athletes to sign a contract of athletic participation and still be eligible in the same sport.

Mr. Mungo moved that a resolution from this committee be drawn to congratulate and to thank Coach Tanner and the USC Baseball Team for the manner in which they represented the University. Mr. Mungo stated that the resolution should be presented by May 26, 2000. Mr. Bahnmuller seconded the motion. The vote was taken, and the motion carried.

Mr. Mungo moved that the meeting be adjourned. Without objection, Chairman Lister declared the meeting adjourned at 12:45 p.m.

Respectfully submitted,

Thomas L. Stepp

Secretary