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NCAA Could Revoke Fiesta Bowl's License To Operate Following Damning Report

The NCAA yesterday said that it "could revoke the Fiesta Bowl's license to operate," and BCS Exec Dir Bill Hancock said that the "misconduct and possible illegal activity disclosed in the bowl's internal investigation could kick the game out of the lucrative BCS," according to Craig Harris of the ARIZONA REPUBLIC. Hancock: "The BCS group takes this matter very seriously and will consider whether they (Fiesta Bowl) keep a BCS bowl game, and we will consider other appropriate sanctions. If the bowl does remain a BCS bowl, its handling of things will be closely monitored going forward." Hancock said that he has "appointed a seven-member task force to review the Fiesta Bowl's report." The Fiesta Bowl "has a contract to be a member of the BCS for the next three years," but Hancock said that conference commissioners and university presidents "could break the deal." The Big 12 Conference, which has a contract for the next three years to send its champion to the Fiesta Bowl, said that it too will "review the report" (ARIZONA REPUBLIC, 3/30). ESPN's Joe Schad reported the BCS "has actually asked the Fiesta Bowl to explain in writing why they should even be considered to remain a BCS bowl game." Schad: "For the folks that have criticized the BCS bowl system, the folks that have criticized the bowl system in general, the folks that have said that bowls are a gross exploitation of non-profit status, there couldn't be more explicit evidence of inappropriate personal spending than what we've seen here" ("SportsCenter," ESPN, 3/29).

DAMNING REPORT: In Arizona, Harris & Wagner report an investigation by the Fiesta Bowl "has found evidence of potentially illegal employee conduct and spending irregularities." As a result of the five-month internal probe released yesterday, the bowl fired President & CEO John Junker and "accepted the resignations of two other top bowl officers." Fiesta Bowl Chair Duane Woods, who requested the internal investigation last fall, noted that COO Natalie Wisneski resigned Friday and VP/Marketing Jay Fields "quit Thursday." The 276-page report, commissioned by a Fiesta Bowl Special Committee in October, "details a culture of excessive spending on bowl employees, politicians and business associates despite rules barring the bowl from using its money to benefit individuals; a system of campaign contributions that could run afoul of state and federal campaign laws; and accounts of efforts by bowl staffers to mislead government investigators." A review by investigators showed Junker was "reimbursed $4.85 million for expenses over the past decade, of which more than half could not be verified as legitimate." The reports noted that items expensed by Junker and other execs included a "$1,200 night at a strip club; $13,000 in travel to an employee's wedding in Missouri; a $30,000-plus birthday party for Junker in Pebble Beach, Calif.; and thousands of dollars in golf-club memberships." Employees also told investigators that the bowl "reimbursed 11 staffers for more than $40,000 in political donations," a "violation of state and federal campaign-finance laws." A "half-dozen service contracts with people or organizations, including several board members, also came under investigators' scrutiny for their cost or lack of oversight" (ARIZONA REPUBLIC, 3/30).

PLAN TO REFORM SYSTEM: The Fiesta Bowl in a statement called Junker's activities "improper and inappropriate." The organization added that it is "adopting reforms to restore public trust in the bowl." The BOD "will use a search firm" to find a new Exec Dir, CFO and General Counsel/Compliance Officer to "oversee the bowl's business affairs." The board also "will review and approve all compensation for senior-level staff." It also "has adopted a whistleblower policy, including a hotline monitored by an independent company, so complaints can be filed anonymously." Woods said, "I'm disappointed, disgusted and devastated by everything." He added that he will "seek reimbursement from employees who received improper benefits" (ARIZONA REPUBLIC, 3/30). Woods added the actions of Junker "unfortunatley, have tainted the stellar reputation that the Fiesta Bowl has worked so hard to maintain for more than 40 years" (AP, 3/29). Sun Belt Commissioner Wright Waters, a member of the BCS task force reviewing the report, said, "We've all kind of thought it (the report) was going to be ugly. We didn't know if it was going to be as ugly as it is. This is now about: Everybody's got a black eye. The challenge of this group now is we can't stand up and tell the public everything is going to be great because the public isn't going to believe us" (CBSSPORTS.com, 3/29).   

Junker dismissed amid evidence of
potentially illegal employee conduct
IN HIS OWN WORDS: In Arizona, Wagner & Harris note interview reports written by investigators indicated that when Junker "was confronted about lavish spending and political lobbying under his watch, he intermittently wept with sorrow, touted his accomplishments and justified his expense reports." The reports says that Junker "spoke at length about questionable contracts, travel, game tickets and other expensive gifts given to politicians, TV executives and college administrators." He said that those benefits were "meant to win favor with bigwigs who could provide helpful legislation, secure a new stadium or ensure network contracts." Junker "never admitted wrongdoing during about eight hours of questioning." When asked if he believed any of his expenses were improper, he said, "In 20-20 hindsight, everything can be second-guessed, but we have managed a successful business" (ARIZONA REPUBLIC, 3/30).

BLACK EYE FOR BCS: In Arizona, Paola Boivin writes, "Shame on you, college football, for fostering an environment where a handshake is accompanied by a wink, a gift by an expectation." The "biggest crime by the Bowl Championship Series cartel? Its lack of foresight." The bowl system "creates an environment of currying favors to stay relevant." The Fiesta Bowl's "pocket logo is now the college football equivalent of a scarlet letter." Boivin: "The Fiesta Bowl is to blame. College football is, too" (ARIZONA REPUBLIC, 3/30). SI.com's Murphy & McKnight wrote, "This is not a good day for the BCS. The Sugar and Orange Bowls have also recently come under withering criticism for the excessive compensation of executives and extravagant expenditures" (SI.com, 3/29). CBSSPORTS.com's Dennis Dodd noted the findings of the Fiesta Bowl report "will likely invite more government scrutiny of other bowls" (CBSSPORTS.com, 3/29). 

OPENING FOR OTHER BOWLS? In Oklahoma City, Jake Trotter notes if the Fiesta "ends up getting the boot," the Cotton Bowl "would be on the shortlist of possible replacements," along with the Chick-fil-A Bowl and the Capital One Bowl. The Cotton, however, "would have obstacles to overcome for immediate inclusion, namely its television deal with Fox that runs through the 2014 season." The bowl "would likely have to maneuver out of its agreement with Fox to join the BCS, which last year inked a long term deal with ESPN." Otherwise, the Cotton "would have to wait until the 2015 season" (DAILY OKLAHOMAN, 3/30). In Dallas, Chuck Carlton writes, "Even if the hammer falls hard, the Fiesta Bowl will certainly remain part of the BCS rotation through January 2014, when the current TV contract expires." The "logistics of changing now would be too complicated." But the Cotton Bowl -- "with Cowboys Stadium, a deep-pocked corporate sponsor and a rock-solid reputation -- will deserve and get consideration" (DALLAS MORNING NEWS, 3/30). ESPN's Schad noted there is "no question that the Cotton Bowl will use this material in the upcoming negotiations to determine what the four sites for the next BCS cycle are" ("SportsCenter," ESPN, 3/29). In Arizona, Dan Bickley wrote, "Ever since workers broke ground on that new stadium in Texas, the Fiesta Bowl has been under silent siege."  Now, the BCS "can act like they care (penalize the Fiesta Bowl), wash their hands of the matter (remove the Fiesta Bowl from the BCS rotation), move the game to Dallas and make even more money in the process" (AZCENTRAL.com, 3/29).

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