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 Board of Trustees met on Friday, June 6, 2003, at 11:30 a.m. in the Carolina Plaza Board Room.

Members present were: Mr. Samuel R. Foster II, Chairman; Mr. Arthur S. Bahnmuller; Mr. Toney J. Lister; Mr. Miles Loadholt; Mr. Michael J. Mungo; Mr. M. Wayne Staton; Mr. Othniel H. Wienges, Jr.; Mr. Mack I. Whittle, Jr., Board Chairman; and Mr. Herbert C. Adams, Board Vice Chairman. Other Trustees present were: Mr. James Bradley; Mr. Mark W. Buyck Jr.; Mrs. Helen C. Harvey; Mr. William C. Hubbard; Mr. Robert N. McLellan; Mr. James A. Shuford, III; and Mr. Eugene P. Warr, Jr.

Others present were: President Andrew A. Sorensen; Secretary Thomas L. Stepp; Executive Vice President for Academic Affairs and Provost Jerome D. Odom; Vice President and Chief Financial Officer Richard W. Kelly; Vice President for Information Technology and Chief Information Officer William F. Hogue; Vice President for Human Resources Jane M. Jameson; Vice President for Student Affairs Dennis A. Pruitt; Dean of USC Lancaster John Catalano; Associate Vice Provost of Regional Campuses and Continuing Education Carolyn West; Legal Counsel Walter (Terry) H. Parham; Assistant Athletics Director for Development, Department of Athletics, Brad Edwards; Vice President for University Advancement T. W. Hudson Akin; Chancellor of USC Beaufort Jane T. Upshaw; President of the USC Letterman's Association Clyde Jones; Director of the Department of Internal Audit Alton McCoy; Director of the Office of Public Affairs Russell McKinney; and members of the media.

Chairman Foster called the meeting to order and invited those present to introduce themselves. Mr. McKinney introduced members of the media who were in attendance. Chairman Foster 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.

Open Session

Chairman Foster directed the Committee's attention to the agenda and called on Dr. McGee.

1. Athletics Department Budget: Dr. McGee distributed additional information to the Committee regarding the proposed FY 04 budget and statistics on the athletes Grade Point Averages. Dr. McGee gave an overview of the FY 2003-2004 budget proposal. The total project departmental revenues were $42,093,456 (this amount excluded $1,560,000 in football bond seat fees, $728,000 for bond fees in men's and women's basketball, and approximately $1,050,000 in state admission taxes.) Also, the total revenues did not include direct payment to coaches of $900,000. Revenues from department operations will increase 10.8 percent ($3,674,333) to $37,718,456 over the budgeted revenues for FY 2002-2003. As a result of two additional home football games, the department operational revenues from admissions (ticket sales) increased by 26.73 percent. The 2003 football schedule projected a total of twelve games, eight home games and four away games. Admissions revenue was projected to be $10,900,000 or a 32.65 percent increase. Men's Basketball admissions was projected at $1.8 million and remained unchanged over the budgeted amount for FY 03. The Gamecock Club contributions had increased by $305,000 or 3.2 percent.

   Based on projections, the Southeastern Conference revenues were projected to increase in excess of $100,000. Other revenues would increase 26.5 percent ($563,000) due to increased revenue from football concessions, two additional home games and a new multi-media contract.

   Budgeted non-arena operational expenditures were projected to rise by 8.2 percent ($32,957,388). Personnel requests for FY 03 - 04 would increase by 3.26 percent ($353,780), primarily due to salary increases for some coaches to meet contractual requirements. A gender review was completed and there was a total of nine adjustments in salary throughout the department as it related to periodic review of salaries. There was an allotment of three percent for coaches; however, there was no increase in salaries for football staff, men's basketball staff, or administrative salaries.

   Grants-in-aid expenses had been increased to cover anticipated rises in tuition, reallocation of out-of-state grants and an increase in fifth year aid.

   Dr. McGee stated that the Department of Athletics had made significant progress in creating new facilities and maintaining current facilities. The Carolina Center was completed with an approved budget of $57.1 million. There was an additional $2.5 million in electronic scoreboard, signage and marquee equipment that was absorbed by a separate contract with Actions Sports, $1.5 million was absorded through a contract with the concessionaire and $2.8 million in pre-opening expenses which was absorded by the Athletics Department.

   In keeping with the recent NCAA certification study and on-going commitment to gender equity, the Athletics Department would fund one additional women's sport in FY 06.

   Dr. McGee stated that the Athletics Department was self-supporting, funding all direct and indirect expenses. In addition, the Department provided funds to the University for the General Fund. A survey was completed on SEC and ACC schools to determine the amount of support provided by their Athletics Departments back to the general budget of those separate schools. Of the 13 schools surveyed, USC was number one in the amount of support provided back to the general fund budget. Over the last two fiscal years, this support to the University had totaled in excess of $5.6 million.

   Dr. McGee stated that the Carolina Center had added a very important venue to the USC campus and added to the quality of life for students, faculty, and staff.

   Dr. McGee commented on the Athletics Debt Service. The original issuance amount exceeded the $40 million debt ceiling because some of the debt predated the $28 million borrowed for the Arena. The original outstanding principal was $35.2 million. The principal payments for November, March and May projections for FY 03 would decrease that amount to $32.2 million and the debt ceiling would remain $40 million.

2. Athletics Director's Report: Dr. McGee stated that over one-thousand unannounced drug tests had been performed on athletes this year. Drug testing had served as a significant deterrent in the use of drugs.

   Dr. McGee responded to a question raised as to what the Conference revenues were for this year; Dr. McGee responded $8.2 million.

   President Sorensen commended Dr. McGee and his coaches for several extraordinary accomplishments: the current University football team graduation rate was 76 percent, the best in the program's history in Division 1-A. Dr. Sorensen stated that he had been a senior administrator in the Southeastern Conference for the past thirteen years and had never seen a football graduation rate that high.

   With respect to the athletes' grade point averages, men's basketball was typically among the lowest grade point average of all sports in all universities in Division 1-A. The GPA for men's Basketball for this spring was 2.6, 2.4 in Football and overall for the department for the semester was 2.9. Dr. Sorensen stated that this was extraordinary.

   Dr. McGee updated the Board on current sports events and reminded them that the USC Baseball team would participate in the regional tournament working toward the College World Series.

   Chairman Foster congratulated Dr. McGee and his staff for another productive year in USC sports and academics.

   Mr. Mungo made a motion that the Athletics Department budget be passed on to the Executive Committee for approval. Mr. Lister seconded the motion. The vote was taken, and the motion carried.

There were no other matters to come before the Committee, and Chairman Foster declared the meeting adjourned at 12:10 p.m.

Respectfully submitted,
Thomas L. Stepp
Secretary