MINUTES OF THE MEETING
BOARD OF DIRECTORS
UNIVERSITY OF LOUISVILLE ATHLETIC ASSOCIATION, INC.
June 20, 2002
The Board of Directors of the University of Louisville Athletic Association, Inc. held its regular meeting on Thursday, June 20, 2002, at 3:25 p.m. in the Jefferson Room of Grawemeyer Hall, with members present and absent as follows:
Present: Dr. Carol Garrison, Chairman, Presiding
Mr. Robert P. Benson Jr., Treasurer
Mr. Owsley B. Frazier, Secretary
Mr. Joseph S. Beyel
Ms. Blanche Brewer
Mr. Carlton J. Brown
Ms. Virginia C. Brown
Dr. William Cheadle
Prof. Robin R. Harris
Mr. Thomas M. Jurich, ex officio
Dr. Richard L. Miller
Prof. Glenda S. Neely
Mr. Larry Owsley
Dr. William Pierce
Mr. Sam Rechter
Mr. T. W. Samuels, Jr.
Mr. Michael Seebert
Prof. Elaine O. Wise
Absent:Mr. Ulysses L. Bridgeman, Jr.
Mr. Richard Emmett
Dr. Henry S. Enck
Mr. Wade Houston
Judge Olga S. Peers
Prof. Joanne Rowe
Dr. Kenneth N. Schikler
Ms. Lea J. Thurman
Prof. Paul J. Weber
From the University: Mr. Kevin Miller
Mr. Kenny Klein
Mr. Pete Cautilli
Mr. Mike Mangeot
Ms. Julie Hermann
Mr. Marvin Mitchell
Mr. Gary Friedman
Mr. John Carnes
Ms. Alicia Clark
Ms. Rae Goldsmith
Ms. Angela Koshewa, University Counsel
Dr. Gene Gilchrist, Assistant Treasurer
Mrs. Kathleen Smith, Assistant Secretary
Ms. Trisha Wolf, Board Liaison, President’s Office
I. Convene Meeting
Having determined a quorum present, Chair Garrison called the meeting to order at 3:25 p.m.
Dr. Garrison expressed her appreciation to the board for the support and dedication they give the University on behalf of intercollegiate athletics. She commended Athletic Director Jurich and his staff for working with the ULAA Board and the University to build a nationally recognized program of success in athletic competition, in gender equity, in quality facilities, in academic achievement, in healthier lifestyles for students through intramural opportunity and in compliance with NCAA standards. Dr. Garrison noted that the ULAA Board, working alongside the Board of Trustees, has made a strong statement to the community that academics and athletics create the synergy and excitement that attract outstanding students to the University of Louisville and that a mature institution benefits greatly from a robust and pervasive spirit of cooperation. Dr. Garrison assured the board that, with their help, she intends to continue to reinforce and to communicate UofL’s position so that the University’s message focuses on achievement through accountability, collaboration, and intense effort to compete at the highest levels possible. She recognized the ULAA Board for their commitment and thanked the board for their support.
- Minutes of the ULAA Board of Directors, January 24, 2002
- Minutes of the Executive Committee, April 22, 2002
Mr. Benson made a motion, which was seconded by Dr. Pierce, to approve the minutes.
The motion passed.
II. Report of the Committee on Academic Performance
- Red and Black Banquet
Prof. Wise reported that the Red and Black Banquet, sponsored by the Committee on Academic Performance, is now five years old. This year’s banquet had three corporate sponsors:
National City Bank, Anthem, and the L-Club. The cost of the banquet totaled $7251.00.
- C-USA Award for Excellence
Prof. Wise reported that Dr. Ron Holmes is the first winner of the C-USA Award for Excellence. Dr. Holmes, a faculty member in the Dept. of Justice Administration, received several nominations from student-athletes. C-USA commended him for his efforts to encourage and motivate students.
- Spring Academic Support Report
Mr. Marvin Mitchell reviewed the Olga Peers Academic Center for Student-Athletes 2001-02 Academic Highlights
- New record was set in Fall and again in Spring for number of student-athletes on the Athletic Director’s Honor Roll
- Women’s Tennis had the highest GPA for 2001-02 school year: 3.481
- 11 Teams had a 3.0 or higher GPA for the Fall semester
- 10 Teams had a 3.0 or higher GPA for the Spring semester
- 9 (almost 10) Teams had a 3.0 or higher GPA for the 2001-02 school year; the 10th team had a 2.9 average.
- 8 Teams achieved their highest GPA since 1988-89.
- 6 Teams achieved their Second highest GPA
- GPA for all student-athletes has steadily increased since 1999
- Record new numbers of student-athletes named to Conference USA Commissioner’s Academic Medal (25) and Honor Roll (147)
- Number of student-athletes with less than a 2.0 cumulative GPA has decreased
Dr. Garrison commended the faculty and athletic department for assuring that student-athletes not only succeed on the field but in academics as well.
III. Report of the Finance Committee
- April 30th update for Fiscal Year 2001-2002
Mr. Miller reported that he is working to close the books on the fiscal year with a projected $1 million variance. A couple of year-end accounting changes, including reporting of summer school costs, still remain. The budget was right on target for revenue with some areas exceeding their original projection. Mr. Miller thanked Mr. Jurich, Dr. Shumaker and Dr. Garrison for their leadership in getting the budget on track to be balanced in the next couple of years. Mr. Benson stated that expenses were in line with targeted projections.
- Financial Planning 2002-06
Mr. Benson reported that the Finance & Budget Committee will work with Dr. Gilchrist on a five‑year projection for athletics and will present it to the board in the fall. Dr. Gilchrist informed the committee that the athletic program’s spending is in line with programs used as benchmarks. He noted that the University needs to change the way it interacts and supports the athletic department. Paying maintenance and overhead costs, student fees, and recognizing legitimate tickets costs are several strategies the University has begun.
- Action Item: Approval of the 2002-03 Operating Budget
Mr. Miller reported the budget projects 6 home football games. He also noted that the department has resumed a very conservative budgeting tactic with Papa John’s Cardinal Stadium for non‑football events. Basketball will host 17 games this year with the possibility of an exempt tournament. UofL basketball will also host the Minardi Classic, which already has guaranteed sponsors solicited by Coach Pitino. Mr. Miller thanked everyone for their cooperative effort over the past year. Mr. Benson remarked that the budget looked fair, realistic and the funds held in the Foundation were in sound financial shape. Mr. Benson made a motion, which Prof. Harris seconded, to approve
The Athletic Director’s recommendation that the Board of Directors approve the 2002-2003 Operating Budget for the University of Louisville Athletic Association, Inc. in the form attached.
The motion passed.
Dr. Garrsion thanked Mr. Jurich, Mr. Miller, Dr. Gilchrist, and all those involved who worked so hard to get the budget back in line.
- Action Item: Approval of Ticket Price Adjustment
Mr. Miller reported that the proposal would raise the price of Men’s Basketball tickets in the amount of $1 per game. The increase will generate approximately $16,000 additional revenue per game. Mr. Benson made a motion, which Mr. Rechter seconded, to approve the
Athletic Director’s recommendation to increase Men’s Basketball ticket prices from $20 per game to $21 per game.
The motion passed.
- Action Item: Approval of Infield Synthetic Turf System
Mr. Cautilli informed the committee that the athletics department issued a Request for Proposals on April 2, 2002, seeking proposals for a synthetic turf system for three specific projects: Papa John’s Cardinal Stadium, the Football Practice Field, and the proposed baseball stadium. It was anticipated that combining these facilities would produce a more attractive price as opposed to bidding the projects separately. proGrass submitted a proposal that costed the three facilities, essentially, for the price of two (assuming that the baseball stadium would be the final turf). A committee reviewed the proposals and identified the timeline and pricing as listed below:
- Football Practice Field: Cost $498,000; Construction period July 2002
- Papa John’s Cardinal Stadium: Cost $734,000, Construction period of 2003 or 2004 pending satisfaction with the practice field
- Baseball Stadium: No cost; Construction as early as 2004.
Mr. Cautilli reported that funding for the project would come from $1.5 million generated by the football program in the early 1990s and deposited into the UL Foundation as a Quasi Endowment on behalf of football. As of March 31, 2002, the market value of this account was $2,710,680. The request is to allocate $498,000 of this fund toward the purchase of the new turf. Mr. Benson made a motion, which Prof. Wise seconded, to approve
The Athletic Director’s recommendation to allocate accumulated earnings on athletic funds held by University of Louisville Foundation for the purchase a synthetic turf system for the UL Football Practice Field in 2002. The cost is estimated at $498,000.
The motion passed.
- Action Item: Approval of Cardinal Hall Proposal
Mr. Miller reported that the recommended residence hall would house both student-athletes and members of the general student population in a property built off Fourth Street. He noted that the project would be a leasehold improvement over a twenty-year period at which time the facility would revert to the university at nominal cost. The university would operate the facility or contract for operations during the twenty-year period. The university would collect rent and pay the developer net profits to offset debt services. The new facility will have a study room and a computer lab. Mr. Benson made a motion, seconded by Mr. Rechter, to approve
The Athletic Director’s recommendation that the Board of Directors approve the construction of a residence hall (“Cardinal Hall”) for student-athletes and non-athlete students. The use of this facility will be in compliance with NCAA Legislation. As a part of the overall financing of the project the ULAA is being asked to guarantee occupancy of 35 (or 36) beds annually.
The motion passed with one objection [G. Brown] and one abstention [C. Brown].
Mr. Benson also noted that Dave Barker, Director of Audit Services, had reviewed the budget management in athletics and reported that it is solid and following University procedures.
IV. Report of the Athletic Director
Mr. Jurich welcomed Dr. Garrison to her new position as Acting President. He then reported that athletics had been involved in a long-term search for an Associate Athletic Director for Compliance and had hired John Carnes. John has filled the role in an acting capacity and was first choice for the job. He is a tremendous leader and educator.
Mr. Carnes thanked Mr. Jurich. He reported that the most appealing aspect of the position was the opportunity to work with an institution where dedication to compliance is paramount.
Mr. Jurich commended Mr. Miller and the rest of the department for their efforts with the budget. The budget would have had a better chance for equilibrium had it not been for September 11th. He noted that the 2002-03 budget is a realistic and conservative projection. The Louisville community has a great fan base and tremendous marketing potential, but not participating in a BCS Conference disadvantages the institution. Mr. Jurich reported that the student fee will be a significant help and he thanked student government for its help. Mr. Jurich praised the association with Nelligan Sports Marketing as a major advantage, and he looks forward to a long-term successful relationship.
Mr. Jurich informed the board that this fall the Athletics Department will participate in the NCAA certification process. Dr. Garrison has met with the NCAA and will continue throughout the year.
The NCAA reviewed UofL last in 1996.
Mr. Jurich also noted the following regarding the upcoming sports seasons:
- Football is right around the corner. The team will begin the season ranked anywhere between 13 and 22. John L. has a very challenging schedule, which is much tougher than last year.
- Basketball recruiting is underway. Mr. Jurich expects this year’s recruiting to be the best ever. Coach Pitino began his camps the first week of July. The camps are so popular that there is a waiting list to participate. Coach Pitino is a wonderful representative of the University.
- Women’s Tennis is currently looking for a new coach. This is a program that needs to be upgraded. Men’s tennis is doing great.
- Baseball and both golf teams are doing well. Cardinal Club has been a tremendous help with recruiting.
Mr. Jurich thanked his staff for all of their hard work. He commended Marvin Mitchell for the wonderful turnaround with the academic performance of the student-athletes. He also noted Gary Friedman as a wonderful addition to the department and expects the development activity to pick up significantly.
V. Executive Session
Prof. Harrris made a motion, which Mr. Samuels seconded, to go into Executive Session to discuss personnel matters.
VI. Open Meeting Reconvenes
The open meeting reconvened at 4:40 p.m. President Garrison reported that the Board discussed a litigation matter and several personnel items in executive session, including the annual evaluation of the Athletic Director. Mr. Samuels read into the record the following report for the ULAA Personnel Committee:
In early May, the Personnel Committee of the UofL Athletic Association met to evaluate the 2001-02 performance of Athletic Director Thomas M. Jurich. The committee discussed Mr. Jurich’s written self-assessment and the written evaluation of Mr. Jurich’s performance as submitted by the Chairs of the Committee on Finance & Budget and Academic and Student Affairs. Subsequent to the Personnel Committee meeting, the Chair of the Personnel Committee and the Chair of the Board of Directors met on May 10th with Mr. Jurich to review the results of his performance evaluation and to discuss the Board’s goals and objectives for 2002-03.
The Report of the Committee notes Mr. Jurich’s strengths in recruiting outstanding professional staff, from coaches to senior administrators, and engaging the athletic staff to achieve new levels in gender equity, NCAA compliance, and community support for athletic initiatives. His commitment to improve the marketing position of the department, especially through the contract with Nelligan Sports Marketing, offers substantial opportunity to increase revenues. The Committee also commends his strong emphasis on academic performance, which is a significant factor affecting the improved attention of athletes toward academic achievement.
The Committee also notes a real opportunity for enhancing the reputation of UofL Athletics through a more focused effort on collaboration with senior university administration. Mr. Jurich’s team approach to management has potential for developing collegial relationships with key unit heads to help advance the University’s overall goals as well as those of intercollegiate athletics. The Committee urged him to follow this direction.
As a public institution, the hallmark of a university is accountability throughout its units. The Committee recommends that, as the Athletic Association’s officer responsible for operations, Mr. Jurich lead an effort to assure the community that UofL Athletics has committed to a structurally responsible budget that projects balanced revenues and expenses and holds itself accountable to achieving these results.
Mr. Jurich represents the University and Athletics well before the media. It is important that the message he communicates is in the best interest jointly of the University and Athletics, and his position reflects his commitment to athletic achievement, academic accomplishment, and accountability in all areas of operation.
The Board’s goals and objectives for 2002-03, as discussed with Mr. Jurich, are as follows:
- To maintain a structurally balanced budget that reflects a reasonable projection of revenues and expenses without any unplanned variances.
- To develop a plan that integrates the Athletic Department and the University into a more cohesive environment and to improve communication and maximize public perception.
- To develop a plan that removes facility maintenance and operations costs from the ULAA budget.
- To find the best available candidate to direct our compliance program and to continue our present atmosphere of compliance with NCAA regulations and “zero tolerance” for infractions.
- To continue our total emphasis and focus on improving graduation rates and ensuring the academic success of our student-athletes.
- To break ground on the new natatorium and baseball facility.
- To continue to advance our commitment to gender equity under Title IX—particularly through fundraising and planning for the natatorium and boat house—and continue our consultation with Lamar Daniels, a valuable asset to the University.
- To build on the relationships recently established with Nelligan Sports Marketing and Service America in the marketing of our programs and the operation of the Cardinal Stores and the Brown & Williamson Club.
- To build on the recently established relationship with Collegiate Licensing Corporation and continue to grow our licensing and merchandising revenue.
- To develop a plan for a new basketball venue in conjunction with KFEC.
- To assure that a new basketball venue will include men’s and women’s practice facilities to satisfy all Title IX needs.
Dr. Garrison reported that the board does not take action on the Athletic Director’s goals but only notes them for record.
VII. Report of the Chair
Chair Garrison reported that this fall, UofL will participate in the NCAA certification process for a 10-year period. UofL received its last certification in 1996.
Dr. Garrison thanked the student and elected faculty directors whose terms expire at the end of the month. She expressed her appreciation for their dedicated service as directors and asked for their continued support of the Board’s initiatives. The Chair read a resolution for retiring director Carlton Brown. She then announced that the faculty had elected William Cheadle and Robert Stenger to serve on the board for three-year terms.
After reading the resolution, the Chair offered Mr. Brown an opportunity to make remarks. Mr. Brown stated that it had been great working with the board and getting to know all the directors.
Prof. Harris made a motion, which Mr. Beyel seconded, to adjourn the meeting at 4:50 p.m.