NCAA'S BUDGET HAS ESTABLISHMENT OF FUND FOR LEGAL EXPENSES
The NCAA has been forced to "kink the hose" on its Div.
I member schools, "slowing down the flow of revenue that
feeds them," according to Steve Rock of the K.C. STAR, who
noted that more money will now "be dumped into a multi
million-dollar fund that someday might have to bail the NCAA
out" of recent legal defeats. Still, despite the two recent
legal setbacks, NCAA President Cedric Dempsey "doesn't view
this as a fragile time for the NCAA." Rock reported that the
NCAA's budget for the '98-99 academic year includes a total
distribution to the Div. I schools and conferences of $141M,
"almost the exact amount that was approved at this time a
year ago." At the start of this decade, distribution to
"all" NCAA members was less than $80M. All told, projected
operating revenue for the '98-99 academic year "stops just
short" of $283M, an increase of nearly $16M from a year ago.
Total expenses, meanwhile, are projected to be $266M, up less
than $5M. Rock reported that the NCAA is taking a "hard-line
approach to its budget, pooling some resources ... and
dumping them into a fund" that could be used to pay damages
on its restricted-earnings coaches case. The fund reserve is
now at about $10M, and is expected to reach $30M by the
conclusion of the '98-99 school year (K.C. STAR, 8/19).
EL JEFE: Dempsey is interviewed in a Q&A and said the
NCAA "can be much more cost-efficient. I don't necessarily
believe that means we stop all resort-type of hotels" for
member meetings. Dempsey, on if the NCAA should sell its
Learjet: "It depends on what [membership] expects of me. I
could not travel 200 days a year commercially. ... If they
don't want me to do that, I'll readjust" (K.C. STAR, 8/19).