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 met Friday, October 5, 2001, at 10:50 a.m. in the Carolina Plaza Board Room.

Members present were: Mr. Toney J. Lister, Chairman; Mr. Arthur S. Bahnmuller; Mr. Alexander English (via telephone); Mr. Miles Loadholt; Mr. J. DuPre Miller; Mr. Michael J. Mungo; Mr. Othniel H. Wienges, Jr.; and Mr. Herbert C. Adams, Board Vice Chairman. Members absent were: Mr. M. Wayne Staton and Mr. Mack I. Whittle, Jr., Board Chairman. Other Trustees present were: Mr. James Bradley; Mr. A.C. Fennell, III; Dr. C. Edward Floyd; Mrs. Helen C. Harvey; Mr. William C. Hubbard; Mr. Robert N. McLellan; and Mr. John C. von Lehe, Jr.

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 and Chief Financial Officer Richard W. Kelly; Vice President for Human Resources Jane M. Jameson; Vice President for Student and Alumni Services Dennis A. Pruitt; Vice President for Information Technology and Chief Information Officer William F. Hogue; 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 Elaine M. Frank; President of the USC Letterman's Association Otis Morris; wife of Trustee Toney J. Lister, Cynthia Lister; wife of Trustee Robert N. McLellan, Doris McLellan; and Director of the Office of Public Affairs Russell McKinney.

Mr. Lister called the meeting to order and invited those present to introduce themselves. Mr. McKinney indicated that no members of the media were in attendance. Mr. Lister 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.

There was a contractual matter appropriate for discussion in Executive Session. Chairman Lister called for a motion to enter Executive Session. Mr. Bahnmuller so moved, and Mr. Mungo seconded the motion. The vote was taken, and the motion carried.

The following persons were asked to remain: Dr. Palms, Mr. Stepp, Dr. Odom, Mr. Glenn, Mr. Kelly, Dr. Pruitt, Ms. Jameson, Mr. Parham, Mr. McKinney, Ms. Warren, and Ms. Tweedy.

Return to Open Session

1. Arena Update: Dr. McGee provided the Committee a brief update of the status of the arena noting that construction had been somewhat delayed. As originally planned, however, the hockey season would begin October 31, 2002; the basketball season would begin November 15, 2002, which also coincided with the projected completion of the upper deck. He indicated that all arena facilities and services would be available at that time pending unforeseen weather conditions which could possibly hamper the construction schedule.

   A dispute between the contractor and project engineer/architect involving the subsurface rock should be settled in favor of the University, the third party in the disagreement. An $800,000 overage in the site contract had been funded with a budget supplement which the Board had recently approved. Foundation construction problems had resulted in a major project increase which had also been covered in the supplement. Although the arena "was in a very tight contingency budget at this point," Dr. McGee indicated that "in the final analysis, we are in good shape with the project." He hoped to schedule a Board of Trustees tour of the arena construction site, which encompassed 330,000 square feet, in the near future.

   Responding to Mr. Mungo's question regarding the nature of the University's involvement in the above-mentioned dispute, Dr. McGee explained that the state engineer would resolve this matter; the University was not directly involved. He further stated that the University Legal Counsel's Office had retained a construction attorney to provide guidance.

   Mr. McLellan asked the amount of the total arena budget including the additional supplemental funding. Dr. McGee replied that the total construction budget was approximately $47.5 million; with the addition of the "soft costs" such as architectural, engineering, and other services, the figure would be in excess of $56 million.

   Mr. Lister stated that this report was received for information.

2. Athletic Director's Report: Dr. McGee stated that information had been distributed regarding an update of the status of Fall sports. He noted that 3 of the 4 Fall sports were currently ranked in the top 20. Dr. McGee added that the women's track team, which had not been included in the handout, would not only be ranked #1 in the nation, but could also be heralded as having the most outstanding track class recruited at any school in the country. The baseball recruiting class had been ranked 10th. And, of course, the football team had won all the initial games played; Dr. McGee anticipated an outstanding season this year.

   Dr. Frank commented that as a South Carolina Honors College mentor, she had met one of the women's track team recruits, who was also a student in that college. She believed that recruiting such students was a "double bonus for the University." Dr. McGee added that these particular students were role models because they reflected very positive images for the University.

   Dr. McGee briefly summarized the annual competitive goals which coaches discussed during their yearly meetings. The most important objective, he explained, was the 100 percent graduation rate of those athletes who completed their eligibility at Carolina. Dr. McGee also stressed the importance of scholastic standing within every sport because this figure ultimately impacted Sears Cup points contributions. He further noted that other goals involved successful (winning) competition with Clemson University; winning at least 3 SEC championships (which had been accomplished 2 years ago); and winning the first NCAA championship which, he believed, would probably occur in women's track.

   Mr. Mungo inquired about the graduation rate in the various sports. Dr. McGee specifically addressed football and stated that USC ranked 2nd in the SEC with a graduation rate of 67 percent; among all sports, the University ranked 5th. Dr VanHuss commented that, according to the criteria utilized in the report which established the rankings, the graduation rate for athletes had been higher than the rate for other University students.

   Dr. McGee stated that he had received the report of an SEC compliance review which was conducted bi-annually on campus; he briefly summarized various conclusions. Suggested areas of improvement included the investigating process of potential violations; the development of a formalized compliance education for all coaches, particularly within the areas of football and basketball; the addition of compliance meetings for student athletes during the beginning of the spring semester; the continued enhancement of the tutorial compliance educational process; and closer maintenance of unofficial visits activities.

   This report also indicated that the University athletics department projected a clear vision of the institution and the athletics department; managed each program with integrity to ensure the student athlete's welfare; provided nationally-competitive programs in every sport; was vigilant in conveying the compliance message through brochures, the USC website, and other publication venues to prevent unintended violations; provided an outstanding athletic academic advising program; and communicated effectively with the President's Office and the Compliance Office.

   In addition, Dr. McGee provided an update of the Global Spectrum contract which would be presented for Executive Committee approval in the near future; the contract would be in effect beginning August 1, 2002. He explained that this company would be responsible for all arena programming and noted that its gross revenue for the previous year had been $210 million. This company had developed an excellent relationship with the largest promoter, SFX, which had garnered contractual agreements with 75 percent of the talent worldwide. Dr. McGee noted that this particular contract would include a provision for an incentive fee, as well as a "downside guarantee" to ensure funding coverage of unintended annual operating budget shortfalls.

   In conclusion, Dr. McGee indicated that, as a result of tragic national terrorist events, security measures had been increased at the upcoming football game in Williams-Brice Stadium the following Saturday. Security coordination efforts had involved University Law Enforcement which, as Dr. McGee praised, had been extremely prompt and very helpful.

   Chairman Lister thanked Dr. McGee and stated that this report was also received for information.

3. Other Matters: Mr. Stepp thanked Chairman Lister who had approached Dr. McGee some time ago about the possibility of inviting Board members to a Friday "Lunch with Lou" gathering. As a result, following the conclusion of this meeting, the trustees would be attending a pre-home football game luncheon with Coach Holtz, other coaches, and selected football players.

There were no other matters to come before the Committee, and Chairman Lister declared the meeting adjourned at 11:25 a.m.

Respectfully submitted,
Thomas L. Stepp
Secretary