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Executive Committee establishes for-profit classification

Status allows for-profit schools to participate, receive benefits as NCAA members

The NCAA’s Executive Committee approved recommendations from its Subcommittee on For-Profit Institutions during its quarterly meeting this week in Indianapolis, providing a pathway for those schools to continue to participate as members of the Association in a manner that complies with the NCAA’s nonprofit status.

The approved recommendations provide a for-profit member classification that permits them to participate in championship events and receive financial distributions through their conferences. However, for-profit members will not be permitted to directly participate in the NCAA’s governance process, neither as voting members at the NCAA Convention nor as institutional representatives on committees. Their staff members will, however, be allowed to participate on committees as representatives of their conferences.

The Executive Committee also directed the NCAA’s three divisions to immediately consider adopting legislation that addresses those recommendations.

The approval came after a year of study by the subcommittee, composed of university presidents and chancellors who are current or recent members of the Executive Committee.

Five known NCAA members are for-profit schools: Grand Canyon University in Division I; Post University, Academy of Art, and Salem International University in Division II; and Daniel Webster College in Division III.

The subcommittee determined for-profit schools could participate as NCAA members if: any financial benefits were received through their conferences and not directly from the NCAA; and if they did not directly participate as individual institutions in the development of the rules that govern the Association, such as having staff members represent their schools on committees or cast votes at the NCAA Convention.

The new classification distinguishes for-profit schools from non-profits in the NCAA membership and allows them to qualify for all championships benefits — including the ability to host events — and remain bound by the same rules and policies that govern other NCAA members.

The Executive Committee requested that further study be conducted on the processes by which current members change from non-profit to for-profit status, and how future for-profit members are considered. The committee will also revisit discussions about how for-profit schools that are publicly traded should be considered in the NCAA membership at a future meeting.

Committee reviews confederate flag policy

The Executive Committee took no action on a request to change its policy prohibiting the hosting of certain championship events in states that prominently display the Confederate flag.

The request, made by the NCAA’s Minority Opportunities and Interests Committee, asked the Executive Committee to change the Confederate flag policy it initially passed in 2001 after concerns were raised by a number of sports and other organizations. The policy bars NCAA events that determine sites well in advance of the championships, such as Division I men’s basketball championship’s sub-regionals, regionals and the Final Four, from being held in states that display the flag.

The MOIC asked the Executive Committee to also consider barring those states from hosting championships events that are not predetermined. Those events – examples of which include the first rounds of baseball, softball and lacrosse in all three divisions – are awarded to schools based on their seeding in the tournaments. Those events have been allowed in states that display the Confederate flag – currently South Carolina and Mississippi – since the policy was established.

Committee explores name, role change

The Executive Committee will seek to change its name and explore the reorganization of its member structure as part of a reexamination of its role in the NCAA governance system.

A proposal to change the committee’s name to the NCAA Board of Governors, which members felt better aligned with the committee’s role of providing Association-wide strategic vision and oversight, was made as part of a broader discussion about its function in the NCAA governance structure. During those discussions, committee members discussed how they could more clearly define the group’s purpose around principles of safeguarding the integrity of the collegiate model of sports, and overseeing the fiscal and ethical health of the national office.

The proposed name and role changes, along with concepts for the future composition of the committee’s members, will be circulated to the NCAA membership for comment and will be revisited at the group’s meeting in October.

Highlights

What happened: Among actions taken by the NCAA Executive Committee – the highest ranking decision-making body in the NCAA, which is composed of 20 university presidents and chancellors – were approved recommendations that provide a new classification for member schools that are for-profit institutions and rules for how those schools can participate in the NCAA.
What’s next: The Executive Committee directed the governing committees in the NCAA’s three divisions to immediately consider adopting legislation that addresses the recommendations.