From: jwag9429@uxa.cso.uiuc.edu (John Wilbur Althauser)
Subject: Schultz/NCAA Invest/UVA
Keywords: Schultz, NCAA, Investigations, loans
Organization: University of Illinois at Urbana
Date: Fri, 17 Apr 1992 07:32:02 GMT

The AP wire service reported yesterday that an internal probe being conducted
by the University of Virginia into loans to athletes is continuing. It has
now expanded to include officials of the Virginia Athletic Dept.

The significant part (IMO) of the story is the involvement of former Virginia
A.D. and current NCAA chief Dick Schultz. Previously the probe had focused
on loans given to athletes by the VSAF- Virginia Student Aid Foundation.

Last May, a new VSAD official learned of the athletic loans and reported the
practice to his boss, noting that it seemed questionable.  To their credit,
Virginia launched an internal investigation.  The Washington Post reported
that about 3 dozen loans were involved.  These 'loans' averaged about $350
apiece, the largest being $1,700.  No interest was charged, and no repayment
period was specified.  Most loans had not been paid off, some from as
early as 1982. They were made to athletes and their girlfriends and the
loan papers didn't have the required signatures.

Yesterday's story, from the Richmond Time-Dispatch, reports that Va. is now
investigating financial perks to coaches, including a 6 figure loan to
Dick Schultz.

Walter Horsley, a Richmond attorney and member of the board of visitor's
athletic committee, told the paper the investigation has become 'a complete
shakedown of the athletic department'.

Horsley said the investigation looked to see if the department's top
administrators failed to oversee the perks from the private sports booster
group.

Also at issue is whether those administators failed to keep the school presidnet
informed of all the financial deals.

'They let the VSAF run on its own', Horsley said.  'I don't know how the
financial deals could have gon on this long without someone knowing if it
violated NCAA rules.  It's a matter of incompetence.'
****

I am very curious to see how this case is resolved by the NCAA, which has
not been involved in the investigation at all, to this point.
not been involved with the investigation at all, to this point.

The worst offense a school can commit, according to NCAA bylaws,
is a Lack of Institutional Control.  This can bring on the death
penalty clause, for repeat offenders (not Virginia).  Virginia ignored
these particular NCAA rules for years, and had a system in place to do it.
Can that be anything but a lack of control?

Ignorance is no defense for violations, but they can't plead that either.
The current chairman of the NCAA Infractions Committee is VU law
professor D. Alan Williams.  Prof. Williams has been sternly
lecturing coaches and administrators of penalized schools for years
about their responsibilities as his committee unfailingly hands out
the convictions and penalties.

Perhaps the NCAA has become a career path for athletic officials and bureau-
cratic types.  Work as a legislative aid at the NCAA convention to pass new
and difficult to comprehend rules, then move into the Interpretations Group
and spend years explaining the stuff to confused coaches and compliance
officers over the phone.  Or work a few years as an enforcement officer, then
be hired by a school as a compliance officer or assistant athletic director.
Some who've served on the Infractions Committee now consult to schools
which are under investigation and advise them how to minimize the penalty.
Work as an assistant director of the NCAA, then move up to an Athletic
Directors job (as at Michigan State this month).

I think it's a new kind of 'old boy network' where everyone talks the
buzzwords of 'clean program' and 'compliance', but many don't know the
rules themselves, and can't be bothered to learn them.  The primary goal
is to generate revenue and convince the public the system has the
student-athletes best interests at heart.

About a year ago, a poll was conducted which suggested that about 70%
of the public felt that college athletics was headed in the wrong direction.
Today the percentage is something like 45-50%.  The NCAA has announced that
their reforms are working and that government intervention is not needed.
This sounds a lot like the way policy is made in Washington these days.
Conduct a poll to decide what people want, then take a position.

I think that Wes Morgan's earlier suggestion of automatic penalties for
violations is very good.  If the school corrects problems itself, impose
an automatic penalty.  If the NCAA must get involved, double that penalty.

john althauser
jwag9429@uxa.cso.uiuc.edu


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