IAC Minutes 2-10-16

DRAFT

Intercollegiate Athletics Committee Meeting
Wednesday, February 10, 2016
1:30-3:00 pm
PLC 348

Present: Andy Karduna, Andrew Dunn, Shawn Stevenson, Chris Sinclair, Tim Gleason, Eric Roedl, Lisa Levitt, Laura Leete, Anita Weiss, Elizabeth Skowron, Merle Weiner, Bill Harbaugh.

Review and approval of minutes from last meeting

Elizabeth will add minor corrections and Andy will give to Kurt for website.

Chair report

Chair Karduna sent an email regarding the meeting with President Schill, Provost Coltrane, Tim Gleason, Kim Sheehan and Rob Mullens. They talked about strategies going forward with IAC.

Chair Karduna asked Eric Roedl to give a high view of Athletics Finances.

Overview of Athletics Finances, Eric Roedl, Deputy Athletic Director

Eric showed slides of Oregon Athletics 2015-16, which gave an overview of the athletic department. The Athletic department goals are Culture of Excellence-success in the classroom and on the field. We want an exceptional Student-athlete experience. Athletics wants to enhance resources to match expectations.  Eric talked about the autonomous legislation for the big 5 conferences. Enhance resources to match expectations. They put money into facility infrastructure. Athletics wants to compete for championships in all sports. Eric showed a 2014-15-season highlight film.

The 2015-16 Athletic department snapshot. The UO has 20 sports with 451 student-athletes, 235 FT employees and $103.4 M FY16 Budget.

National Championships 27 all-time team NCAA National Championships with 11 in last six years.26 are track and 1 basketball. In recent years UO added Baseball and Acrobatics and Tumbling. They have added new facilities.

Broad-based competitive excellence. The University of Oregon finished in top 15 of NACDA Directors Cup (Oregon has 18 eligible NCAA championship sports to score points) in each of the past three years. In 2014-15 UO finished 13th. 

Key financial objectives

·         Balanced budget - $0 direct institutional support, no general fund transfer to athletics

·         Outstanding student-athlete experience

·         Resource sports for conference/NCAA success

·         Recruit and retain High Achieving Coaches/Staff

·         Build/Maintain Facility Infrastructure

·         Establishment of Reserves (Operating/Capital) Goal to build a reserve

Revenue breakdown for FY 2016 Total Revenue = $103.4 million

Gifts/Donations 29%, ticket sales 25% (football 22 million of that), PAC12/NCAA 25%, Broadcast Sponsorship 8%, IMG, food and beverage 8%, and other categories.

Revenue from Football 68%, men’s basketball 13%, other sports 2%, legacy fund 9%, outside events 1%, general support 7%

Athletics’ goal is to reduce legacy fund transfer to make it a longer-term endowment.

Is the legacy fund transfer all interest or principle? The legacy fund balance is approximately $70 million dollars, quasi-endowment. It is both interest and principle.

Athletics is watching trends and renewal rates. UO has sold-out 110 straight games at Bautzen. It is getting more difficult to fill stadium. They work on fan experience and incentives for being a season ticket holder.

Expense Breakdown

Operations 34%, salaries/benefits 36%, debt service 19%, scholarships 11% FY2016 Total expense = $103.4 million

Fully funded scholarship 85 football, 13 mbb, 15 wbb, 85% of student-athletes are from of out of state and Athletics pays full out of state tuition for those students. Athletics is trying to keep Oregon talent in state.

Eric then showed a slide with Pac 12 institutional support/allocated funding analysis (direct institutional support, student fees, and state/government support)

UO is 10 out of 10 publics receiving 2.16 million in 2013-14. It includes lottery funds which 45% is given back to University. Student fees are negotiated annually with ASUO and the ASUO requires the money benefit student athletes.

Key athletics financial metrics

2013-2014 UO has a lower subsidy when compared with the PAC12 schools and the Power 5 conference schools. Expenses are inflated due to debt service on Autzen and the arena.

Merle Weiner asked about the various track events. For the NCAA track championships Athletics breaks even. Other events are renting the facilities. Athletics tries to host postseason events whenever possible.

Athletics department campus spending 2014-2015

Cash Payments

Tuition 85% of scholarships are for non-resident student-athletes $7,500,000

Other Services $1,200,000

Total Cash Payments $8,700,000

Assessments

UO Administrative Assessments (4% plus Lottery Assessment) $2,600,000

Foundation Assessment (5%) $900,000

Total Assessments $3,500,000

Total Cash Payments and Assessments $12,200,000

The next slide showed the Pac-12 institutional athletic scholarship support. Oregon Athletics receives no scholarship assistance and 85% of student-athletes are out-of-state.

Football season tickets sold from 2005-2015 In 2015 40,255 sold. Number does include student season tickets and pac12 pass holders

Football-historical season ticket price data from 1998 through 2015. 2015 football season ticket = $479. Athletics is creative with single game pricing.

Financials

National athletics spending 2013-2014, which showed school, conference, total expenses and stadium size. The average is $108,200,482 in total expenses and average stadium size is 86,412 and UO has $99,426,432 with a stadium size of 54,000.  The final slide was Future Considerations.

Athletics is trying to diversify revenues due to the reliance on football

Pac12 networks (distribution-financial performance)

NCAA autonomy

Ongoing litigation (name/image/likeness-anti-trust) highly visible cases, Is it fair to limit student-athlete cap to scholarship and expenses

ESPN subscriber loss/cord cutting and is funding lots of rights fee deals

Student-athlete experience and fan experience

Anita Weiss asked if Athletics has to create budget models with the various budget-cutting levels that the academic side did. Eric replied that Athletics did not but that Athletics does look at their budget on an annual basis looking at the revenue versus expenses. Athletics has to make sure they are self-solvent. When new legislation that allows for meals or cost of attendance stipends is approved, or if the cost of a scholarship goes up, Athletics has to adjust their budget accordingly.

Athletics pays for student-athlete housing and makes operational adjustment for coaches.

Discussion about revising the committee charge

Chair Karduna is working on revising the charge with the idea to send it to committee on the committee for review and then senate executive committee and to the Senate for a vote.

He would like to see a committee that is more effective in doing something. The President is not interested in having an oversight committee. The President would like to have a committee that would be advisory. Chair Karduna would try to revise the committee’s charge so that it would still be through senate and advising the president. Tim Gleason has looked at all the committees in the PAC12. Chair Karduna’s goal is to make this a functional and viable committee. The group discussed who should be on the committee and how people on get on committee. Tim Gleason handed out packets on the research he has done. The majority of the committees are appointed.

The President feels this committee should look at issues related to academics; the academic performance of student athletes and student life. Admissions was less clear. Chair Karduna would like the committee to be able to set an agenda, leaving flexibility for other issues that come up and write reports. Tim discussed in his findings that some committees had very specific roles to create annual reports. The majority of committees were appointed. One committee looked at travel schedules. The committee could help identify issues that needs to go to conference. The committee should have a substantive outcome. There should be less focus on finance.

The group discussed the makeup of the committee. The majority of members felt that positions should primarily be elected in order to be representative. Students should be members of the committee. The students would continue to be appointed through the AUSO because of logistics. There could be some positions appointed. The group wanted a broad group of voices on the committee for a wider range of views. The group should be advisory.

We discussed whether it should continue to be an open committee. People felt that it should be with the option to go into executive session when needed.  Likewise here, the majority of members prefer the committee continue with an open meeting structure with a minority opinion that regularly scheduled executive sessions or closed meetings would be essential for effective functioning.

Laura Leete felt that the charge should be broad enough so that the group can address the experience of student athletes and the way athletics affects the rest of campus. We should have a broad charge and do focused work. We want to make our conversations meaningful and have impact. People mentioned that somebody from the administration should be on the committee.

The committee could have an issue that can be researched, discussed and reported on. Andy was going to work with Tim on revising the charge. The committee needs to let people know if there was misinformation released.

Tim asked that everyone take a look at various charges get feedback on the various charges for committee. Chair Karduna wants to get moving on this. He will send out an email and request feedback. He would like to get done in the next month.

Meeting adjourned 2:58