NCAA LSDBi

Division I Proposal - 2018-17

ATHLETICS PERSONNEL -- CONTRACTUAL AGREEMENTS -- ATHLETICALLY RELATED INCOME AND BENEFITS

Status: Adopted Final

Intent: To require that: (a) Contractual agreements, including letters of appointment, between a full-time or part-time athletics department staff member and an institution shall include the stipulation that an athletics department staff member who receives athletically related income or benefits from a source outside the institution must report such earnings to the president or chancellor on an annual basis, as specified; and (b) A full-time or part-time athletics department staff member who receives athletically related income or benefits from a source outside the institution must report such earnings to the president or chancellor on an annual basis.

Bylaws: Amend 11, as follows:

11 Conduct and Employment of Athletics Personnel

[11.01 through 11.1 unchanged.]

11.2 Contractual Agreements.

[11.2.1 unchanged.]

11.2.2 Athletically Related Income and Benefits. Contractual agreements, including letters of appointment, between a full-time or part-time athletics department staff member and an institution shall include the stipulation that an athletics department staff member who receives athletically related income or benefits from a source outside the institution (e.g., income from endorsement or consultation contracts with apparel companies, equipment manufacturers, television and radio programs; income from ownership, control or management of a foundation, organization or other entities; etc.) must report such earnings [other than cash or cash equivalent (as opposed to tangible items) if the total amount received is $600 or less] to the president or chancellor on an annual basis. (See Bylaw 11.3.2.1.1.)

11.3 Compensation and Remuneration.

[11.3.1 unchanged.]

11.3.2 Income in Addition to Institutional Salary.

11.3.2.1 Bona Fide Outside Employment. A staff member may earn income and receive benefits in addition to the institutional salary by performing services for outside groups consistent with the institution's policy related to outside income and benefits applicable to all full-time or part-time employees. The approval of such income and benefits shall be consistent with the institution's policy.

11.3.2.1.1 Noninstituitonal Income and Benefits Disclosure. A full-time or part-time athletics department staff member who receives athletically related income or benefits from a source outside the institution (e.g., income from endorsement or consultation contracts with apparel companies, equipment manufacturers, television and radio programs; income from ownership, control or management of a foundation, organization or other entities; etc.) must report such earnings to the president or chancellor on an annual basis; however, the athletics staff member is not required to report any cash or cash equivalent (as opposed to tangible items) if the total amount received is $600 or less. (See Bylaw 11.2.2.)

[11.3.2.2 through 11.3.2.8 unchanged.]

[11.4 through 11.7 unchanged.]

Source: NCAA Division I Board of Directors (Commission on College Basketball Apparel Companies Topical Working Group)

Effective Date:Immediate

Proposal Category: Amendment

Topical Area: Athletics Personnel

Rationale: The Commission on College Basketball noted that efforts to reform the nonscholastic basketball culture must include increased financial transparency and greater individual accountability for institutional athletics personnel who enter into agreements with outside entities. The Commission noted that these agreements may negatively impact the collegiate enterprise and can result in NCAA rules violations. Requiring athletics department staff to provide a written account of all athletically related income and benefits received from sources outside the institution will increase institutional control of athletics department personnel and promote increased transparency and accountability between NCAA institutions and outside entities. This requirement will ensure that all athletically related outside income and benefits receive appropriate institutional review and encourage adherence to NCAA rules. The exception applicable to outside income (cash and cash equivalents) less than $600 is consistent with Internal Revenue Service reporting requirements.

Estimated Budget Impact: None.

Impact on Student-Athlete's Time (Academic and/or Athletics): None.

History

Jul 30, 2018: In Progress
Aug 2, 2018: In Progress Edited to clarify that all part-time and full-time athletics department staff are required to report regardless of whether they are under contract or have a letter of appointment.
Aug 8, 2018: Adopted Final Adopted by the Board of Directors

Legislative References

Division Number Title
I 11 Conduct and Employment of Athletics Personnel
I 11.2 Contractual Agreements.
I 11.2.2 Athletically Related Income and Benefits.
I 11.3 Compensation and Remuneration.
I 11.3.2 Income in Addition to Institutional Salary.
I 11.3.2.1 Bona Fide Outside Employment.
I 11.3.2.1.1 Noninstituitonal Income and Benefits Disclosure.
References