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News Nuggets, 10.08.06
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Compiled from staff reports and electronic dispatches

Jeff Blake bows out of hall of fame induction

Due to an unscheduled family commitment, former East Carolina quarterback and ECU Hall of Fame selectee Jeff Blake was unable to attend the school's 2006 Hall of Fame/Letterwinners' Banquet Friday night. Blake talked with ECU athletic department personnel this week to inform them of the situation, according to an ECU athletic media relations release.

Blake orchestrated the greatest season in Pirate football history, leading ECU to an 11-1 overall record and a final No. 9 national ranking in 1991. His 3,073 passing yards remains a single-season school record. Plans are in place for Blake to be formally enshrined into the hall of fame in 2007.

"I am touched and honored with this opportunity and I regret that I cannot attend this year," Blake said. "I certainly will be looking forward to coming back to East Carolina next fall and seeing everyone again."

The 2006 inductees — Pat Dye, Ted Gartman, Gaynor O'Donnell and Pat Watkins — were recognized at halftime of the Virginia-East Carolina football game on Saturday night, a contest which the Pirates won, 31-21.

NCAA's tax status under investigation

In a letter sent to NCAA President Myles Brand, the Committee on Ways and Means of the U.S. House of Representatives requested answers to a variety of questions related to the NCAA’s status as a tax-exempt organization, according to a release at ncaa.org.

The committee, led by California Republican Rep. Bill Thomas, has been investigating tax-exempt organizations since 2004. In that time, NCAA officials have met with committee members and responded to all requests for more information.

Thomas’ letter challenges a number of Association principles, including the amateur status of student-athletes, the validity of the Division I Academic Performance Program (including the Academic Progress Rate) and the educational purpose of intercollegiate athletics.

Thomas particularly questioned corporate sponsorships and the Association’s rights agreement with CBS for coverage of the Division I Men’s Basketball Championship — questioning how those dollars are spent both by the Association and the member institutions and how much influence the networks have on NCAA decisions as a result of the contract.

The letter challenges the operation of athletics departments on individual campuses as well — particularly expenditures for football and men’s basketball, not simply the daily operation of the NCAA national office.

Trent Stamp, executive director of Charity Navigator — an online database that rates more than 5,000 charitable organizations — says that income derived from men’s basketball, and all NCAA sports, is perfectly acceptable for the Association.

“If I run an animal shelter, and have a big party and get everyone in town to come and there’s entertainment involved, and the local band plays and we raffle off tickets, that’s legitimate nonprofit income and I don’t have to tax it,” Stamp said. “I don’t think that’s any different then when Duke and North Carolina have their basketball games.”

The Association believes that the amount of revenue an organization generates should not influence its tax-exempt status. Instead, that status should be determined by how those funds are used to support an organization’s mission. The Association’s 1,200 member schools receive 95 percent of the NCAA’s revenue. The remaining funds are spent to maintain the day-to-day operations of the Association.

Charity Navigator rates institutions based on three criteria: program expenses, administration expenses and fund-raising expenses.

Program expenses are defined as the costs of fulfilling the organizational mission. Administrative expenses include clerical duties, accounting fees and legal fees, while fund-raising expenses include money spent to raise other money. The NCAA is not rated by Charity Navigator because it does not solicit donations, but Stamp said the Association would fare well — better than many other well-known nonprofit organizations.

“If the NCAA gives 95 percent of its revenue to its member institutions, that would be its program expense. I would argue that 95 percent is a very responsible number,” Stamp said. “It appears that the NCAA is doing what it’s chartered to do.”

Thomas requested the answers to all his questions by October 30.

North Dakota challenges NCAA mascot policy

North Dakota’s attorney general has filed a lawsuit challenging the NCAA’s mascot policy in a state district court, according to a release at ncaa.com.

The policy, which prohibits institutions with Native American mascots deemed hostile or abusive from hosting NCAA championships, impacts North Dakota because of its Fighting Sioux nickname. Institutions on the list also are prohibited from participation in postseason play unless all references to Native Americans are removed from their uniforms.

North Dakota was retained on the list of institutions banned from postseason play after a final appeal to the NCAA Executive Committee was denied in April. The North Dakota Board of Higher Education authorized the lawsuit last summer.

The suit accuses the Association of breach of contract, unlawful trade restraint and breach of the covenant of good faith and fair dealing. It seeks an injunction against application of the policy and ultimately a determination that the policy is illegal.

In a statement on his Web site, Attorney General Wayne Stenehjem alleged that the policy was applied in an “arbitrary and capricious manner.” He said the Association has a monopoly on intercollegiate athletics competition and has jeopardized the economic future of the University of North Dakota.

The Association has 20 days to respond.

News Nuggets are compiled periodically based on material supplied by staff members; data published by ECU, Conference USA and its member schools; and reports from electronic services and other sources. Copyright 2006 Bonesville.net and other publishers. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Page Updated: 02/23/2007 12:51 PM