O'Bannon, Jr. v. National Collegiate Athletic Association et al

Filing 240

MOTION to Admit Exhibits filed by Edward C. O'Bannon, Jr.. Motion Hearing set for 6/25/2014 01:00 PM in Courtroom 2, 4th Floor, Oakland before Hon. Claudia Wilken. Responses due by 6/24/2014. Replies due by 6/25/2014. (Attachments: #1 Proposed Order, #2 Exhibit A, #3 Exhibit B, #4 Exhibit C, #5 Exhibit D, #6 Exhibit E, #7 Exhibit F, #8 Exhibit G, #9 Exhibit H, #10 Exhibit I, #11 Exhibit J, #12 Exhibit K, #13 Exhibit L, #14 Exhibit M, #15 Exhibit N, #16 Exhibit O)(Bojedla, Swathi) (Filed on 6/23/2014)

Exhibit M

RESTORING THE BALANCE
Dollars, Values, and the Future of College Sports

Sponsored by the John S. and James L. Knight Foundation

2287-1

To preserve the integrity of the revenue distribution system, the NCAA and athletic
conferences should change their allocation formulas as follows:
1. Change revenue distribution formulas to prioritize educational values

over winning.

a.  educe the funding provided for winning and link new funding to
R
academic success. The current NCAA revenue distribution formula rewards
men’s basketball teams on the basis of both appearances and wins in the NCAA
men’s basketball postseason tournaments. The allocation vehicle for these
revenues, known as the Men’s Basketball Fund, distributed $167 million in 2010.
The Commission recommends that the allocation to this fund be substantially
reduced. Specifically, the current percentage of shared revenues provided
in the Fund for tournament success should be cut at least by half (from
40 percent to 20 percent) and savings should be reallocated to the new
Academic-Athletics Balance Fund described below. This revision would
ensure that at least 80 percent of the shared revenues will be allocated
based on educational values rather than on wins.

If the Commission’s
recommendation
is adopted, these
tournament slots, and
the financial rewards
that accompany them,
will be reserved
for teams that meet
legitimate academic
standards.

b. 
Reallocate some postseason football revenues on the basis of academic
values. Currently, revenues for FBS postseason football activities and
media contracts are controlled by the participating conferences, not the NCAA. Consistent with the principles
in this report, we believe a portion of the revenues from these activities and contracts should be allocated to
restoring an appropriate balance between investments in athletics and academics. Thus, as a starting point, we
recommend that at least 20 percent of the overall funds available for annual conference distributions from the
BCS be allocated equitably to each FBS conference and designated as the Academic-Athletics Balance Fund.
The conferences then would take this allocation and distribute the funds to its members according to the criteria
specified for the Academic-Athletics Balance Fund discussed below.

2. Academic-Athletics Balance Fund. The Commission recommends that the NCAA and individual FBS conferences

establish a new stream of revenue allocation through the actions described in 1(a) and (b) above. All Division I institutions
would be eligible for this revenue if they met the following two conditions:

a.  ll teams must maintain an average APR that predicts at least a 50 percent graduation rate as measured by
A
the NCAA’s own graduation rate metric; and

b.  ach institution must demonstrate an appropriate balance between institutional investments in athletics and
E
education. The Commission recommends that the NCAA Board of Directors develop criteria to monitor this balance,
drawing upon the metrics recommended in this report. For example, one requirement might be that the growth rate
in the athletics budget measured on a per-athlete basis over a five-year period must not exceed the growth rate in
educational spending on a per-student basis over the same period.

Note: The NCAA’s Academic-Athletics Balance Fund would be distributed to all Division I members. The allocation to
conferences from BCS funding would be distributed only to FBS members (or directly from BCS administration if they are
not affiliated with a conference).

Multimedia report available at restoringbalance.knightcommission.org

2287-17

15