O'Bannon, Jr. v. National Collegiate Athletic Association et al
Filing
233
Deposition Designations by Edward C. O'Bannon, Jr. (Attachments: #1 Exhibit A, #2 Exhibit B, #3 Exhibit C, #4 Exhibit D, #5 Exhibit E, #6 Exhibit F, #7 Exhibit G, #8 Exhibit H, #9 Exhibit I)(Bojedla, Swathi) (Filed on 6/20/2014) Modified on 6/23/2014 (kcS, COURT STAFF).
EXHIBIT I
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UNITED STATES DISTRICT COURT
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NORTHERN DISTRICT OF CALIFORNIA
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4
______________________________
)
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IN RE NCAA STUDENT-ATHLETE
)
)
6
NAME AND LIKENESS LICENSING
) CASE NO.
) 4:09-cv-1967 CW
7
LITIGATION
)
)
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______________________________)
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10
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VIDEOTAPED DEPOSITION of JOHN D. WELTY
13
FRESNO, CALIFORNIA
14
MONDAY, MAY 20, 2013
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16
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Reported by:
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VANESSA HARSKAMP
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CSR No. 5679, RPR, CRR, CCP
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9
Q.
Could you state you full name for the
record, sir?
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A.
John Welty.
11
Q.
And have you ever had your deposition
12
taken before?
13
A.
Yes.
14
Q.
On how many occasions?
15
A.
Four or five, probably.
16
Q.
And in recent years?
17
A.
Yes, within the last seven or eight years.
18
Q.
And were you deposed in any of the
19
discrimination lawsuits brought by former female
20
coaches in the mid 2000s?
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A.
22
Q.
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Yes.
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declaration, was anyone present?
2
A.
Mr. Curtner was present for part of it.
3
Q.
All right.
4
A.
No.
5
Q.
Okay.
Anyone else?
Prior to the hour you spent today
6
preparing for the deposition, did you do anything
7
else to prepare for today?
8
A.
No.
9
Q.
Have you spoken to anyone about the
10
deposition, other than the fact that you would be
11
tied up in the afternoon?
12
A.
16
Q.
Okay.
How did it come about that you
17
prepared a declaration which was submitted to the
18
court in mid March in opposition to the class
19
certification motion?
20
21
A.
I was contacted by Mark Emmert, the
President of the NCAA.
22
Q.
And when was that, approximately?
23
A.
I would say three or four months ago.
24
Q.
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Who prepared the declaration?
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THE WITNESS:
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The -- I'm not sure of the
exact person, but the firm representing the NCAA.
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Q.
And do you still have a copy of that?
2
A.
I don't believe so.
3
Q.
5
Q.
6
Okay.
Before you signed the declaration,
did you do any research?
7
A.
Yes.
8
Q.
And could you describe the research you
9
10
did, please?
A.
I reviewed our budget for some of the
11
financial figures that are included in the
12
declaration.
13
Q.
14
State?
15
A.
Yes.
16
Q.
Anything else that you reviewed prior to
17
And this is the athletic budget for Fresno
executing the declaration?
18
A.
No.
19
Q.
Did you read any -- any economic textbooks
20
or treatises?
21
A.
No.
22
Q.
Did you direct anyone to do any research?
Q.
So basically your research was limited to
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confirming the numbers for the athletic budget for
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Fresno State; is that correct, sir?
2
A.
That's correct.
3
Q.
Now, in this case there have been a number
4
of reports submitted by expert witnesses.
5
Have you
reviewed any of that material?
6
A.
No.
7
Q.
Let me just go over the names so that our
8
record is complete.
9
10
Have you reviewed any of the reports by
Dr. Roger Noll, the economist from Stanford?
11
A.
I have not.
12
Q.
Did you review any of the reports by Larry
13
Gerbrandt, G-E-R-B-R-A-N-D-T?
14
A.
No.
15
Q.
Did you review the report by Dr. Rascher,
16
R-A-S-C-H-E-R?
17
A.
No.
18
Q.
Did you review the report by
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Dr. McCormick, M-C-C-O-R-M-I-C-K, the fellow from
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Clemson?
21
A.
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Q.
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Okay.
And then you came to Fresno State?
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A.
That's correct.
2
Q.
And you have been here ever since?
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A.
Yes.
4
Q.
And when you came, did you come in as the
5
President?
6
A.
Yes.
7
Q.
And you have been the President since '91?
8
A.
That's correct.
9
Q.
So about 22 years?
10
A.
Yes.
11
Q.
Okay.
12
13
And I understand you are retiring
soon?
A.
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Yes.
At the end of July.
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I football or Division I basketball?
A.
From time to time there have been
3
discussions about whether that is an alternative we
4
should consider.
5
CSU schools dropped football, we have had
6
discussion about:
7
8
Q.
Largely in football, when other
Can we sustain the program here?
And were any studies done, anything on a
formal level?
9
A.
No.
10
Q.
No -- any papers produced?
11
A.
I don't believe so.
12
Q.
Any economic analysis prepared?
13
A.
No.
14
Q.
So these are just sort of informal
15
discussions with some of your colleagues?
16
A.
That's correct.
17
Q.
Okay.
Has anyone at Fresno State
18
performed any sort of economic analysis about the
19
pros and cons of leaving Division I football to go
20
to Division II or Division III?
21
MR. CURTNER:
22
You may answer.
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THE WITNESS:
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Object to form.
We've had -- I don't know
that there has been a formal paper presented, but
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California, just explain to me briefly how that
2
comes.
3
A.
I'm trying to understand.
Well, essentially the legislature
4
allocates an amount to the California State
5
University, in turn then the Chancellor's office
6
allocates to the 23 campuses, and it's usually
7
done -- it's done primarily based upon enrollment.
8
Q.
Right.
So, for example, if you have
9
10,000 students here and another state university
10
has 20,000, then in general they are going to get
13
Q.
And do you know how much the
14
breakdown between the money that comes through the
15
California State University system versus student
16
tuition?
17
A.
Well, roughly 48 percent of our general
18
fund is from the State of California, and 52
19
percent comes from student fees.
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2
Q.
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And then the next item, sir, is
"NCAA distributions."
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4
Okay.
And
If you can explain that, please?
A.
These are distributions that come to the
conference and are distributed -- well, excuse me.
6
NCAA distributions covers the basketball
7
units, revenue based upon the number of sports we
8
offer, revenue for the student-athlete opportunity
9
fund, and then there is a couple of other
10
11
miscellaneous distributions.
Q.
So just so I'm clear, does this money come
12
directly from the NCAA to Fresno State, or is the
13
Western Athletic Conference -- or strike that -- is
14
the Mountain West Conference and before that the
15
Western Athletic Conference an intermediary?
16
A.
The -- for basketball units and the
17
student-athlete opportunity fund, the conference is
18
an intermediary.
19
I think the revenue for the number of
20
sports we offer comes directly from the NCAA.
21
22
Q.
NCAA's source of revenue?
23
24
25
And what is your understanding of the
Where does its revenue come from?
A.
Its primary source of revenue is the men's
basketball contract.
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Q.
Any other source, to your knowledge?
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A.
Well, there are other sources, but the --
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you know, that include sponsorships, other
7
championships, and there is revenue sources there
8
too, but it's pretty small.
9
Q.
But the bulk of the money is from the
10
spring annual basketball tournament known as March
11
Madness?
12
A.
Yes.
13
Q.
And do you have an understanding as to, in
14
general terms, the amount of money that generates
15
in revenue for the NCAA?
16
A.
I don't recall the exact annual figure,
17
the contract is a multi-year contract of over a
18
billion dollars.
19
Q.
Per year?
20
A.
No.
21
22
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Well, per -- I don't know exactly on
that specific amount.
Q.
It's -- regardless, in lay terms, it's a
lot of money?
A.
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BY MR. STEYER:
Q.
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When the money comes to Fresno State
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from the conference, I take it that the other
5
schools within the Mountain West Conference share
6
in that revenue stream?
7
A.
Yes.
8
Q.
And how is that allocated?
9
10
11
Is it by
student population or is it a different metric?
A.
No, each university has one share, and
that's allocated based upon the shares, so --
12
Q.
So it's basically pro rata?
13
A.
Yes.
14
Q.
Regardless, if you are the biggest team,
15
and the biggest school in the conference or the
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smallest?
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18
A.
Right, it has nothing to do with the
students.
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Q.
So, for example, you've told us that
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Fresno State now, on an annual basis, awards 235
17
athletic scholarships; right?
18
A.
(Witness nods head).
19
Q.
Is that correct?
20
A.
Yes.
21
Q.
Does Fresno State have the ability to
22
increase that if it wants, or is that all capped by
23
NCAA rules?
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are the university's rights.
Q.
Okay.
So, for example, if the rules, as a
3
result of this case or otherwise, were to change
4
and they were to allow student-athletes on a
5
deferred basis, for example, pursuant to a group
6
license to participate in some of the revenue
7
stream, Fresno State would still have an economic
8
interest in getting the best broadcast contracts it
9
could; correct?
10
A.
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12
13
That's correct.
MR. CURTNER:
Object to form.
BY MR. STEYER:
Q.
And it would still be in Fresno State's
14
interest to maximize those contracts as a source of
15
revenue?
16
17
Q.
18
And is it correct that you are saying here that
19
Fresno State does not own the rights of current or
20
former student-athletes, to their name, image or
21
likeness?
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THE WITNESS:
23
MR. STEYER:
Will you repeat that?
If you could read it back,
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THE WITNESS:
That's correct.
BY MR. STEYER:
Q.
And it's your understanding that the
4
student-athletes or former student-athletes own the
5
rights to their name, image or likeness?
6
MR. CURTNER:
7
You may answer.
8
THE WITNESS:
9
10
11
12
Object to form.
No, I don't believe that's
correct.
BY MR. STEYER:
Q.
What do you -- can you read it back?
Maybe it wasn't well stated.
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(The record was read back:
14
Q.
And it's your understanding that
15
25
Q.
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student-athlete decides to come here and play, say,
2
football or men's basketball, if they have to sign
3
any forms in order to play on the team?
4
5
6
7
8
9
A.
We do have some forms that they sign, yes,
when they -Q.
And could you tell me what forms they have
to sign in order to play?
A.
Well, I don't know all of the forms, but
they have to do with their agreeing to comply with
10
university rules, regulations, as well as NCAA
11
regulations.
12
Q.
And who prepares the forms?
13
A.
The athletic department.
14
Q.
And do you have any input into that?
15
A.
I do not, no.
16
Q.
And I take it you have never prepared or
17
edited any of the forms?
18
A.
No.
19
Q.
And I take it, and I know it sounds silly,
20
but I'll just ask it anyway, that in your capacity
21
as president of the university, you are not meeting
22
with the incoming student-athletes and going over
23
the forms with them and explaining to them or
24
talking to them about it?
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Q.
And is it your understanding to the extent
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whatever forms you require here that if a player, a
6
student-athlete is unwilling to sign it, that he
7
would not be eligible to play on that particular
8
team?
10
12
THE WITNESS:
Q.
That's correct.
Are you aware of any instances during the
13
time that you've been president where a student-
14
athlete refused to sign a particular form that
15
Fresno State required and was still allowed to
16
play?
17
A.
No.
18
Q.
If you could look at paragraph 13,
19
please?
And this is in reference to televised
20
games.
21
are not directly involved in discussing with
22
student-athletes the number of times their team's
23
games may be televised in a given season?
Is it correct that you, as the president,
24
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primarily here referring to football and
2
basketball?
3
A.
Well, no.
Actually, you know, more
6
Q.
And then you go on to say, quote, "The
7
number one complaint we receive from coaches and
8
student-athletes alike regarding television
9
appearances is that they would like to be on
10
television more often."
11
12
Has any student-athlete ever approached
you directly and complained about that?
13
A.
Yes.
14
Q.
On how many occasions?
15
A.
I may hear about that five to eight times
16
17
a year.
Q.
Okay.
And when you talk about coaches,
18
are there particular coaches that you have in mind
19
here?
20
21
22
A.
Well, the ones you most frequently hear
from are football and basketball coaches.
Q.
And I take it, obviously, if -- it's the
23
university's goal to have as much exposure for its
24
football and basketball games on television as
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611b
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9
Q.
highly compensated?
11
12
And I take it that the football coach is
THE WITNESS:
In relation to what?
In
relation to the president, yes.
13
MR. STEYER:
Well, we are going to get --
14
that's the first thing Curtner and I are going to
15
do when we are done here today.
16
BY MR. STEYER:
17
18
Q.
coaches?
19
611b
In relation, say, to all the other
A.
22
Q.
23
And he earns north of a million dollars a
year?
24
A.
No.
25
Q.
Less?
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611b
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A.
Yes.
2
Q.
How much, approximately?
3
A.
Base is in the neighborhood of 650, plus
4
bonus opportunities.
Q.
6
Okay.
And so that's right, like you are
saying, in the lower percentiles of coaches?
7
A.
Yes.
8
Q.
What I did mean, it was a vague question,
9
is relative to the other coaches here.
10
MR. CURTNER:
Object to the form.
12
Q.
The football coach --
13
A.
Relative to --
14
Q.
-- makes the most salary, the most
15
compensation of all your other athletic coaches?
16
A.
At Fresno State, yes.
17
Q.
And typically the number 2 salaried person
18
is the men's basketball coach?
19
A.
That's correct.
20
Q.
Okay.
Take a look at paragraph 15,
21
please.
22
you talk about the $2.4 million and those other
23
numbers?
24
25
A.
What year are you referring to here when
This is a projection for the -- it would
be the '13-'14 academic year, the 2.4, from the
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611b
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Mountain West.
Q.
Okay.
And when you say, "revenues from
3
institutional and conference television
4
broadcasts," briefly, what are you referring to?
5
6
10
A.
Well, I'm talking about the conference
contract that we have.
Q.
And then the total revenue you are
11
projecting for the next football season is
12
approximately $4 million?
13
A.
That's correct.
20
Q.
And you are saying that the total revenues
21
for men's basketball are approximately $1 million?
22
A.
That's correct.
23
Q.
Also from the same sources?
24
A.
Correct.
25
Q.
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pay them, as is outlined in A, B and C there.
Q.
You mean you are saying you don't think --
I'm trying to understand -- you are saying you
4
6
Q.
Okay.
Now, when you talk about student-
7
athletes, do you differentiate in your mind the
8
notion of student-athletes being compensated on a
9
deferred basis when they are former student-
10
athletes, versus being paid while they are actually
11
at university?
12
A.
No, I think paying them either way is --
13
would go beyond what I would consider to be
14
appropriate for an educational institution.
15
Q.
Okay.
But you don't disagree with the
16
notion that collegiate sports, particularly
17
football and men's basketball, has become big
18
business?
21
Q.
And I don't say that in a pejorative way.
22
A.
There -- no, I don't disagree with that.
23
Q.
I mean, there's hundreds of millions of
24
dollars of revenue now in the modern era being
25
generated from the playing of these athletic
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events.
2
602
701
A.
That's correct.
3
Q.
Now, you go on to say in your declaration
4
that, "any such state of affairs would be a
5
disaster for intercollegiate athletics and higher
6
education."
7
8
Fair to state that's your opinion;
correct?
9
A.
That is correct.
10
Q.
And why do you think it would be a
11
disaster?
12
A.
Well, I think it would -- and first of
13
all, and I believe there's intercollegiate
14
athletics as part of the educational mission of the
15
institution, and I think if we got into paying
16
student-athletes, particularly if the belief is
17
that you pay football and basketball players, I
18
think it would be illegal under Federal Title IX
19
law.
20
Secondly, I think it would create a
21
situation where you would have, even if you could
22
do that, you would have unevenness between football
23
and basketball players and other intercollegiate
24
athletes, and it goes beyond what I would consider
25
to be part of our educational mission, because a
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602
701
1
student-athlete does receive grant-in-aid, receives
2
lots of other support in order to provide for their
3
educational success.
4
Q.
Then you go on to say that you "know of no
5
college or university president who would support
6
such an approach."
7
Before you signed your declaration, did
8
you speak to any other university presidents on
9
this topic?
10
11
12
A.
There, over the years, have been lots of
discussions on this topic that -Q.
Sure.
And I realize you have been in
13
education for a long time.
14
specifically in the context of preparing this
15
declaration, did you speak to anyone specifically
16
on the topic?
17
18
MR. CURTNER:
I'm asking you
He is trying to give you an
answer and you started interrupting him.
19
So you are free to answer.
20
MR. STEYER:
21
interrupt?
22
23
Oh, I'm sorry, did I
THE WITNESS:
Well, you know, I did not
speak to anyone before doing this declaration, you
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MR. STEYER:
I think we all know it is
primarily football and basketball.
3
MR. CURTNER:
Same objection.
4
THE WITNESS:
Well, again, I think the --
5
I do not necessarily agree with how some of the pro
6
leagues approach that in terms of student-athletes,
7
but I also recognize they have that opportunity to
8
make a choice if they want to go pro.
9
believe we should be essentially paying student-
10
12
But I don't
athletes to be pros while they are in college.
Q.
Okay.
All right.
Let's take a look at
13
paragraph 17, please.
14
first part of your paragraph, you are saying, well,
15
in your view, your opinion they could -- schools
16
could end up offering different amounts to
17
different student-athletes; is that what you are
18
suggesting there?
19
A.
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Yes.
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So, hypothetically, if there's 15 players
5
on the basketball team and they all shared equally,
6
you wouldn't have that problem that you are
7
articulating?
8
9
10
11
A.
Well, I think there would be a problem
between different institutions, because some would
be able to pay more than others.
Q.
That's what you address, I take it, on the
12
bottom of paragraph 17.
13
you talk about top recruits then mid-level and
14
low-level.
15
please?
16
17
And I wanted to ask you,
Could you define what you mean by that,
MR. CURTNER:
It says, "so-called 'top
recruits.'"
18
MR. STEYER:
Right.
Yeah.
19
MR. CURTNER:
You may answer.
20
THE WITNESS:
Well, again, the -- you
21
know, there's various services and ratings that
22
identify people as top recruits across the country,
23
and that group of student-athletes would be pursued
24
much more aggressively.
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Q.
I understand
2
what you are saying, but realistically if someone
3
is a top recruit, isn't it true that, say, in
4
football, that it's unlikely, regardless whether
5
the NCAA rules are changed in the future or not,
6
that the top recruits are still going to end up at,
7
quote, "the major schools," you know, for football,
8
Alabama, Florida, Ohio State, et cetera, and
9
respectfully are probably not going to be
10
considering Fresno State or San Diego State, et
11
cetera?
13
THE WITNESS:
15
Q.
That's true.
And that that probably won't change,
16
regardless if the rules change in the future or
17
not?
19
THE WITNESS:
Well, it may not.
I mean,
20
again, I think if there's different levels paid,
21
that's going to influence the student-athlete
22
probably.
23
BY MR. STEYER:
24
Q.
25
I understand what you are saying.
But if it were, if hypothetically it's on
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a group license basis, the average athlete, the
2
average good high school athlete, USC and UCLA are
3
not going to be recruiting him anyway as a
4
practical matter, wouldn't you agree with that,
5
regardless if they end up sharing some of the
6
revenue?
8
10
THE WITNESS:
Q.
Probably not.
And the same would be true for basketball?
11
MR. CURTNER:
Same objection.
12
THE WITNESS:
Yes.
13
14
BY MR. STEYER:
Q.
All right.
If you could look at -- well,
Q.
If you could look at paragraph 18,
15
602
701
19
20
please?
21
You say, quote, "Introduction of that kind
22
of commercial recruiting compensation -- recruiting
23
competition for and between student-athletes would
24
be devastating to Fresno State's ability to recruit
25
student-athletes."
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But isn't it true, as we've been
2
discussing, that you are still going to end up
3
recruiting from the same pool, in all likelihood?
5
THE WITNESS:
Not necessarily.
6
I mean, we do get, from time to time we
7
compete with USC or UCLA and are successful, so --
8
BY MR. STEYER:
9
Q.
On occasion it may occur, but would you
10
agree with me that's an outlier, that's not
11
typical?
12
13
MR. CURTNER:
Object to the form.
Asked
and answered.
14
THE WITNESS: Yeah, I mean, it doesn't --
15
it happens not frequently, but certainly from time
16
to time.
17
BY MR. STEYER:
18
Q.
I mean, a smart young lawyer in my office,
19
when he knew I was coming to visit with you, ran --
20
I'm not going to, we don't have time to -- the
21
rosters the last four years for your football team,
22
and as we discussed, generally it's California
23
student-athletes who are coming here, and many even
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Q.
And so wouldn't you agree that in all
2
likelihood that's not going to -- your pool is not
3
going to change that much, regardless if NCAA
4
changed its rules and in the future student-
5
athletes could on a group basis participate in some
6
of the revenue from some of these revenue streams?
7
MR. CURTNER:
Object to the form.
9
THE WITNESS:
No, probably not.
11
Q.
Okay.
Asked
I understand, by the way, you may
12
not agree with it philosophically as an educator,
13
that I get, but in terms of, you know, the
14
actuality, it doesn't seem like much would change?
15
A.
And you also have to realize it's -- under
16
Title IX, it's illegal, so it would force us to
17
change how we approach intercollegiate athletics.
18
Q.
And let me ask you about that.
You had
19
mentioned that, I know, at the end of your
20
declaration on paragraph 22.
21
Have you specifically, as part of your
22
preparing this declaration, researched or looked
23
into any Title IX issues?
24
A.
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Q.
Right?
Q.
And would you also agree, and I don't have
2
3
4
the numbers off the top of my head, that here at
5
Fresno State, like many institutions, your
6
graduation rates for student-athletes generally
7
speaking are lower than for your general student
8
population?
10
11
THE WITNESS:
That's not correct.
BY MR. STEYER:
12
Q.
How about as to football?
13
A.
They are higher than the general
14
15
16
17
18
population.
Q.
And what are they, if you know, off the
top of your head?
A.
They are in the, I believe, high 50
percentage or the low 60s, for the football team.
19
Q.
And how about men's basketball?
20
A.
They are, I don't know specifically.
21
602
25
There again, I think they are in the 50s.
Q.
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Take a look at paragraph 20.
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you talk about that it's possible that Fresno State
2
might cease playing Division I or Football Bowl
3
Subdivision sports entirely.
4
studied this; is that a fair statement, sir?
5
A.
I mean, you haven't
No, I have looked at this pretty carefully
6
in terms of the financing of intercollegiate
7
athletics here.
8
Q.
Here at Fresno State?
9
A.
That's correct.
10
Q.
Okay.
Have you looked at it in the
11
context of, you know, some of the major schools
12
that have major football and basketball teams?
13
14
15
A.
I have not reviewed others other than
Fresno State.
Q.
All right.
So I just wanted to show you
16
briefly, this is -- here, I'm going to just give
17
this you copy.
18
I'm just going to show you something.
19
This is Dr. Rascher's report, and
If you take a look -- bear with me one
20
second.
21
at pages 81 and 82 and 83, and he, the -- this is
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802
9
Q.
You know, if the rules changed and they
10
allowed some form of a group license for the
11
student-athletes, either currently or after
12
eligibility ends, to participate in some of the
13
revenue streams from football and basketball, has
14
anyone told you they would stop playing Division I?
15
A.
I think among discussion among presidents,
16
there have been a lot of discussion about what
17
different form intercollegiate athletics would take
18
if we move outside of that.
19
20
Q.
But no one has specifically said that to
you; correct?
21
MR. CURTNER:
Object to the form.
23
THE WITNESS:
No, that's not correct.
24
I
mean, in discussions we've had, a number of
25
Asked
presidents have taken that position.
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2
3
4
5
6
BY MR. STEYER:
Q.
particular that comes to mind?
A.
10
Q.
13
All right.
If you could look at paragraph
And you say that, "If Fresno State were to
move to Division III, all athletics grants-in-aid
would be eliminated."
11
12
I don't know that I can identify the
numerous discussions we've had, no.
8
9
And could you specify any one in
And can you explain why that is, please?
A.
Well, in Division III athletic grants-in-
aids are prohibited.
14
Q.
Okay.
By the NCAA's rules?
15
A.
Yes.
16
Q.
And Division II, you indicate, there would
17
be roughly half of what are awarded today, and
18
what's the basis for that statement?
19
20
21
22
23
24
A.
Well, again, looking at the maximum
allowable scholarships in Division II by sport.
Q.
Okay.
So, for example, football would
shrink from approximately 85 to 42?
A.
43?
Yeah, I think they allow 65, but we also,
I think, would be faced with we probably would not
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Q.
9
Are there schools within the California
10
State University system that you are aware of who
11
have left Division I, or the FBS form of
12
subdivision of football?
13
A.
There are at least three schools that come
14
to mind that have dropped football that were in,
15
previously in FBS, what is now FBS, Fullerton, Long
16
Beach and Northridge.
17
Q.
Are there other schools within the Cal
18
State system that have not attempted to compete at
19
the Division I level?
20
A.
Yes.
In fact, I think probably a majority
21
of our 23 campuses are either at Division II or
22
Division III.
23
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