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).

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EXHIBIT I Page 1 1 UNITED STATES DISTRICT COURT 2 NORTHERN DISTRICT OF CALIFORNIA 3 4 ______________________________ ) 5 IN RE NCAA STUDENT-ATHLETE ) ) 6 NAME AND LIKENESS LICENSING ) CASE NO. ) 4:09-cv-1967 CW 7 LITIGATION ) ) 8 ______________________________) 9 10 11 12 VIDEOTAPED DEPOSITION of JOHN D. WELTY 13 FRESNO, CALIFORNIA 14 MONDAY, MAY 20, 2013 15 16 17 18 19 20 21 Reported by: 22 VANESSA HARSKAMP 23 CSR No. 5679, RPR, CRR, CCP 24 25 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 10 8 9 Q. Could you state you full name for the record, sir? 10 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? 21 A. 22 Q. 212-279-9424 Yes. VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 14 1 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. 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 16 18 Who prepared the declaration? 21 THE WITNESS: 22 The -- I'm not sure of the exact person, but the firm representing the NCAA. 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 22 1 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 23 24 25 confirming the numbers for the athletic budget for 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 23 1 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 19 Dr. McCormick, M-C-C-O-R-M-I-C-K, the fellow from 20 Clemson? 21 A. 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 37 25 Q. 212-279-9424 Okay. And then you came to Fresno State? VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 38 1 A. That's correct. 2 Q. And you have been here ever since? 3 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. 212-279-9424 Yes. At the end of July. VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 41 1 2 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. 23 THE WITNESS: 24 Object to form. We've had -- I don't know that there has been a formal paper presented, but 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 50 1 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. 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 57 1 2 Q. 5 And then the next item, sir, is "NCAA distributions." 3 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. 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 58 4 Q. Any other source, to your knowledge? 5 A. Well, there are other sources, but the -- 6 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 23 24 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. 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 59 1 2 BY MR. STEYER: Q. 3 When the money comes to Fresno State 4 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 16 smallest? 17 18 A. Right, it has nothing to do with the students. 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 64 15 Q. So, for example, you've told us that 16 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? 24 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 78 1 2 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. 11 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? 22 THE WITNESS: 23 MR. STEYER: Will you repeat that? If you could read it back, 24 212-279-9424 www.veritext.com 212-490-3430 Page 79 1 2 3 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. 13 (The record was read back: 14 Q. And it's your understanding that 15 25 Q. 212-279-9424 Now, do you have any understanding if a VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 80 1 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? 25 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 81 4 Q. And is it your understanding to the extent 5 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, 24 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 82 1 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 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 85 611b 8 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? 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 86 611b 1 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 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 87 611b 1 2 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. 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 90 1 2 3 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 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 91 1 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 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 92 602 701 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 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 94 1 2 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. 212-279-9424 And if I understand the Yes. VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 95 4 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. 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 96 602 701 1 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 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 97 602 701 1 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." 212-279-9424 Unquote. VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 98 602 701 1 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 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 99 602 701 1 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. 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 101 1 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. 212-279-9424 Okay. Take a look at paragraph 20. VERITEXT REPORTING COMPANY www.veritext.com And 212-490-3430 Page 102 602 1 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 212-279-9424 Let me find the page for you. VERITEXT REPORTING COMPANY www.veritext.com If you look 212-490-3430 Page 105 802 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. 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 106 1 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 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430 Page 109 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. 23 212-279-9424 VERITEXT REPORTING COMPANY www.veritext.com 212-490-3430

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