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Division I Amateurism Part I

Division I Amateurism Part I. Agenda. Pre-Enrollment Amateurism Training and competition-related expenses Prize money Professional team involvement Post-Enrollment Amateurism Preferential treatment Agent issues. Session Goals.

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Division I Amateurism Part I

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  1. Division I Amateurism Part I

  2. Agenda • Pre-Enrollment Amateurism • Training and competition-related expenses • Prize money • Professional team involvement • Post-Enrollment Amateurism • Preferential treatment • Agent issues

  3. Session Goals • Understand the application of common pre-enrollment amateurism issues. • Understand the application of common post-enrollment amateurism issues. • Understand potential student-athlete reinstatement outcomes based on particular violations.

  4. Learning Objectives • Apply pre and post-enrollment amateurism legislation appropriately. • Recognize potential amateurism issues. • Develop a working knowledge of student-athlete reinstatement guidelines.

  5. Pre-Enrollment Amateurism

  6. Who Are We? • Amateurism Certification Staff • Interpretations Staff • Student-Athlete Reinstatement Staff

  7. Pre-Enrollment Amateurism Process ACP Interpretations Student-Athlete Reinstatement ACP Subcommittee for Legislative Relief

  8. Scenario No. 1 - Facts • Sophie Snow is a skiing prospective student-athlete (PSA) from Stockholm, Sweden. • Sophie received three $800 checks ($2,400 total) from Athletes in Excellence to assist with her general training expenses. • Sophie received one check in the month of June, one in the month of July and one in the month of August.

  9. Facts Cont’d. • Additionally, Sophie received $2,000 from Athletes in Excellence and $1,000 through local fundraising efforts in the month of September to assist with her costs associated with competing in the Stockholm Games. • Sophie’s actual and necessary expenses associated with the Stockholm Games totaled $5,000. • Athletes in Excellence is a local Stockholm funding program created to assist local elite athletes with training expenses.

  10. Question No. 1 • Was it permissible for Sophie to accept the three $800 stipend checks from Athletes in Excellence to cover her general training expenses?

  11. Interpretation • No. • Bylaw 12.1.2.4.6. • General training expenses only permissible from National Governing Body or United States Olympic Committee (or international equivalent). • Impermissible source. • Bylaw 12.1.2.1.4.3. • Expenses not related to competition or practice in preparation for competition in which the PSA is representing Athletes in Excellence.

  12. New Legislation • Proposal No. 2011-24: • In individual sports, prior to full-time collegiate enrollment, an individual may accept up to actual and necessary expenses associated with a competition and practice immediately preceding competition, from a sponsor other than an agent, a member institution or a booster. • Expands permissible source of competition-related expenses.

  13. Interpretation Cont’d. • Under Proposal No. 2011-24: • Still impermissible. • Three $800 checks are for general training expenses and not competition-related.

  14. Question No. 2 • Was it permissible for Sophie to accept the $2,000 from Athletes in Excellence for competition-related expenses?

  15. Interpretation Cont’d. • Under Proposal No. 2011-24: • Permissible for Sophie to accept expenses;. • $2,000 from Athletes in Excellence is related to Sophie’s competition in the Stockholm Games; and • $2,000 is less than Sophie’s actual and necessary expenses ($5,000). • Would have been an impermissible source under prior legislation.

  16. Question No. 3 • Was it permissible for Sophie to accept the $1,000 she received through fundraising efforts from outside sources for competition-related expenses?

  17. Interpretation Cont’d. • Under Proposal 2011-24: • Permissible for Sophie to accept the $1,000 she received through fundraising. • Permissible source. • Permissible to accept earmarked competition-related expenses. • Up to actual and necessary expenses. • $1,000 is less than Sophie’s remaining actual and necessary expenses ($3,000).

  18. Student-Athlete Reinstatement • Factors to Consider: • Committee on Student-Athlete Reinstatement Prescribed Penalties. • Case Precedent. • Mitigation.

  19. Student-Athlete Reinstatement • Prescribed Penalties: • Bylaw 12.1.2.1.4.3 (Expenses from Outside Team or Organization Violations). • Repayment of impermissible expenses received. • If total impermissible expenses exceed $3,500, withholding condition on a case-by-case analysis. (June 2009)

  20. Student-Athlete Reinstatement Cont’d. • Outcome Under Proposal No. 2011-24: • Repay $2,400 to a charity of Sophie’s choice.

  21. Scenario No. 2 - Facts • Brian McBride is a men’s basketball prospective student-athlete from Dublin, Ireland. • Brian’s expected date of high school graduation is June 2011. • During the 2010-11 season, while in high school, Brian signed a written agreement with the DCU Saints for the 2010-11 and 2011-12 seasons.

  22. Facts Cont’d. • Brian did not receive a salary or stipend from the DCU Saints. • The DCU Saints compete in the Irish Superleague, and is considered a professional team under NCAA legislation for the 2010-11 and 2011-12 seasons, as it paid at least one player above actual and necessary expenses. • Brian competed in six games for the DCU Saints during the 2010-11 season.

  23. Facts Cont’d. • Brian enrolled as a full-time student at Dublin City University in August 2011. • Brian competed in eight games for the DCU Saints during the 2011-12 season.

  24. Question No. 1 • Was it permissible for Brian to sign a written agreement with the DCU Saints?

  25. Interpretation • Yes. • Bylaw 12.2.5.1. • Permits professional team contracts prior to initial collegiate enrollment in sports other than men's ice hockey and skiing. • Analysis is based on the point in time at which PSA signed contract. • PSA signed professional contract pre-enrollment.

  26. Question No. 2 • Was it permissible for Brian to compete with DCU Saints: • In six contests during 2010-11 season? • In eight contests during 2011-12 season?

  27. Interpretation • 2010-11 season. • Yes. • Bylaw 12.2.3.2.1. • Prior to initial collegiate enrollment, competition on a professional team in sports other than men's ice hockey and skiing is permissible, provided PSA does not receive more than actual and necessary expenses to participate on the team. • Pre-enrollment analysis is based on the individual PSA instead of the team or PSA’s teammates.

  28. Interpretation Cont’d. • 2011-12 season: • No. • Bylaw 12.2.3.2. • Brian enrolled as a full-time student at Dublin City University in August 2011. • Impermissible for Brian to compete with DCU Saints in eight contests during 2011-12 season. • Post-enrollment analysis is based on the nature of the team, which may be determined by benefits provided to teammates in excess of actual and necessary expenses.

  29. Student-Athlete Reinstatement Cont’d. • Prescribed Penalties: • Bylaw 12.2.3.2 (Competition with Professionals). • Two for one withholding condition. (May 201o)

  30. Student-Athlete Reinstatement Cont’d. • Outcome: • Withholding from the first 16 regularly scheduled contests of the 2012-13 men’s basketball season.

  31. Scenario No. 3 - Facts • Raquel Racket is a women’s tennis prospective student-athlete from Columbia. • Raquel graduated high school June 2011, but was not recruited and did not have the financial ability to attend college without a scholarship. • To gain exposure to college recruiters, Raquel continued to participate in organized competition until May 2012. • She initially enrolled full-time at a Division I institution for the 2012 fall term.

  32. Facts Cont’d. • During 2011, Raquel earned $6,700 in prize money. • During 2012, Raquel earned $11,500 in prize money, including $750 above expenses in one event. • Raquel’s career expenses exceeded her career prize money.

  33. Questions • Was it permissible for Raquel to accept the $6,700 in prize money earned during 2011? • Was it permissible for Raquel to accept the $11,500 prize money earned during 2012?

  34. New Legislation • Proposal No. 2011-25. • In tennis, prior to initial full-time collegiate enrollment, an individual may accept up to $10,000 per calendar year in prize money based place finish or performance in open athletics events. • Prize money may be provided only by the sponsor of an open event in which the individual participates. • Once the individual has reached the $10,000 limit in a particular year, he or she may receive additional prize money on a per-event basis, provided such prize money does not exceed actual and necessary expenses for participation in the event.

  35. Interpretation • Under Proposal No. 2011-25: • 2011: • Permissible for Raquel to accept $6,700 in prize money given prize money never exceeded $10,000. • 2012: • Permissible for Raquel to accept the first $10,000 in prize money because it was earned prior to full-time enrollment. • Remaining $1,500 in prize money evaluated on a per event basis. • Raquel received $750 above expenses in one event.

  36. Student-Athlete Reinstatement • Prescribed Penalties: • Bylaw 12.1.2.1.5 (Prize Money Violations). • For prize money violations prior to initial collegiate enrollment when PSA accepts prize money above actual and necessary expenses in one or more events, but less than career expenses • Less than $500 = Repayment • Greater than $500 - $700 = 10% withholding and repayment • Greater than $700 - $1,000 = 20% withholding and repayment • Greater than $1,000 = 30% withholding and repayment (May 2010)

  37. Student-Athlete Reinstatement • Potential Outcome Under Proposal No. 2011-25: • Repay $750 to a charity of Raquel’s choice. • Withholding from first 10 percent of the regularly scheduled dates of competition of the 2012-13 women’s tennis season.

  38. Post-Enrollment Amateurism

  39. Who Are We? • Enforcement Staff • Interpretations Staff • Student-Athlete Reinstatement Staff

  40. Post-Enrollment Amateurism Process Enforcement Interpretations Enforcement Student-Athlete Reinstatement Institution

  41. Scenario No. 1 - Facts • Alex Alley-Oop is a recruited first-year men’s basketball student-athlete at Ballin’ University. • During October of Alex’s first year at Ballin’, his parents could not pay rent so they reached out to Alex’s former non-scholastic basketball coach, Charlie Cheatum, to see if he could loan them money. • Charlie informed Freddy Football, a current NFL player and financial supporter of Alex’s former non-scholastic team. • Freddy deposited $3,000 into the non-scholastic team bank account.

  42. Facts Cont’d. • Charlie withdrew the money and provided it to Alex’s parents. • Alex’s parents repaid the money two months later. • Alex had no knowledge of the loan to his parents for rent.

  43. Question No. 1 • Was the loan provided to Alex’s parents from Freddy permissible?

  44. Interpretation • No. • Bylaw 12.1.2.1.6. • No benefits based on athletics reputation extends to parents. • Official interpretation [Reference: 6/06/00]. • Does not meet the pre-existing relationship test. • Bylaw 12.1.2.1.4.3. • Also not permissible expenses from an amateur team.

  45. Student-Athlete Reinstatement • Guidelines: • Bylaw 12.1.2.1.6 (Preferential Treatment After Enrollment). • Value of benefit is $100 or less = Repayment . • Value of benefit is greater than $100 to $300 = Repayment and 10 percent withholding. • Value of benefit is greater than $300 to $500 = Repayment and 20 percent withholding. • Value of benefit is greater than $500 = Repayment and 30 percent withholding. (May 2008)

  46. Student-Athlete Reinstatement Cont’d. • Staff has the ability to increase or decrease the withholding condition based on a review of factors and culpability . (May 2007)

  47. Student-Athlete Reinstatement Cont’d. • Potential Outcome: • Repay $3,000 to charity of Alex’s choice. • Withholding from first 30 percent of regularly scheduled contests of the 2012-13 men’s basketball season.

  48. Scenario No. 2 - Facts • Tommy Touchdown is a third-year football student-athlete. • Tommy received $1,200 in airfare, lodging and entertainment expenses from his former teammate, Casey Kicks, who is assisting Tommy in selecting an agent for the upcoming NFL draft.

  49. Facts Cont’d. • Casey demanded that any prospective agent who wanted to meet with Tommy provide Casey with a percentage of his or her earnings if Tommy signed with the agent. • Casey arranged for Tommy to meet with four prospective agents, who all agree to Casey’s stipulations.

  50. Facts Cont’d. • Casey is not a certified contract-advisor. • Casey is not affiliated with any one particular sports agent. • Tommy was unaware of Casey’s agreement with the prospective agents.

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