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June 4.1986 the NCAA Comment

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June 4.1986 the NCAA Comment The NCA __June~- 4,1986, Volume 23 Number 23 Ofiicial Publication 01 the National Collegiate Athletic Association Repeal of Bill would restore medal ban deduction to donors is sought A bill has been introduced in the other than as a member of the general U.S. Senate by Sen. David Pryor, public, no gift is involved:’ Pryor The NCAA Recruiting Committee Arkansas Democrat, that calls for said. has voted to recommend to the Coun- full tax deductions on contributions “Therefore, the scholarship dona- cil that it sponsor legislation at the to athletics scholarship programs and tion is not tax-deductible under Sec- 1987 NCAA Convention to permit the revoking of previous IRS rulings tion 170 of the Internal Revenue the distribution of awards to prospec- to the contrary. Code,” Pryor said in a statement tive student-athletes at competitions Sen. Pryor submitted the legislation accompanying his bill. sponsored by member institutions. last month, calling for the application The revised ruling by the IRS says The move came in the wake of criti- of the IRS Code of 1954, allowing full the contributors can take a partial cism of an amendment to Bylaw 1-6 tax exemptions for such donations deduction if the college can provide a that was adopted at the 1986 Conven- and the repeal of an IRS ruling mod- reasonable estimate of the value of tion. ifying the exemption. the privilege extended to them. The amendment, which appears in In 1984, the IRS issued a ruling To estimate the value, the IRS says the 1986-87 NCAA Manual as Bylaw that essentially revoked prior IRS a college can consider such factors as l-6-(+0), states that no awards may determinations that such contribu- the level of demand for tickets. But be presented to prospective student- tions were tax-deductible. The ruling the ruling gives no method as to how athletes in competitions held on held that if the donor received the this demand itself can be valued. member institutions’ campuses. Tra- right to purchase season tickets (other The New York Times said the clar- ditionally, track meets with high than as a member of the general ification “leaves the situation just as school and/ or open competition like public), there was no gift involved. controversial-and more cloudy than the Penn and Texas Relays have given Under well-established tax princi- ever.” awards to winners in those classes. ples, Pryor said, if there IS no gift of Pryor said, “1 remain very con- Another recommendation to go to property to a charity, no charitable cerned over attempts to define what is the Council seeks sponsorship of leg- contribution results; therefore, no tax or is not tax-deductible when a dona- islation to exempt the entire amount deductron is allowed. tion is made to any college or univer- of Pell Grants from NCAA financial The IRS ruling threatened what sity in the country. Many colleges and aid limitations. Currently, maximum was estimated at more than 8100 universities around the country use financial aid limitations under Con- million a year in contributions to these scholarship funds to provide stitution 34(d)-(Z)-(iv) stipulate that athletics programs. Because of objec- much-needed aid to student-athletes. Pell Grants may be included as long tions by the NCAA and other organi- “All of us want to do all we can to as the total award does not exceed the zations and institutions, the IRS with- maintain and strengthen our educa- cost of tuition, fees, room and board, held the ruling for public hearings. tional system. It seems to me that this required course-related books, and An administrative hearing was held latest ruling runs counter to that %900. on the ruling January 7, 1985. effort.” Also to be recommended to the The IRS then issued a revised ruling Pryor says his bill is “very simple.” Council is the sponsorship of Con- (The NCAA News, May 7, 1986). “It repeals Revenue Ruling 86-63 vention legislation that would limit “While a few minor features have (the IRS revised ruling) and provides off-campus contact with prospective changed, the basic thrust of the most that the tax law shall be applied as if student-athletes by head football and recent announcement is that if the it had not been issued.” head men’s basketball coaches to one athletics scholarship donor is allowed Pryor is a member of the Senate per student-athlete. to purchase season tickets in any way Finance Committee. The committee met May 22-23 in Kansas City, Missouri, and also voted to recommend that the Council spon- NCAA forums prove helpful, sor legislation that would eliminate off-campus evaluations and recruiting by football coaches from June 1 participants say in survey through the third week of October Almost 500 people attended the at our Chicago and Los Angeles annually. NCAA Current Issues Forums, which sessions, it seems apparent that the The committee also voted to rec- were held in Atlanta, Chicago and NCAA membership wants sometype ommend to the Collegiate Commis- Los Angeles in May. According to of gathering like this at least on an sioners Association that it extend its John H. Leavens, the Association’s annual basis.” national Letter of Intent Program to director of compliance, the three ses- Attendees spent the first day of the include junior college men’s basketball Great, Scott sions were well-received. forums taking part in presentations players. concerning the Association’s new com- Scott Verplank, Oklahoma State University senior. won the “Generally, we have received very favorable comments concerning these pliance department, the drug testing NCAA Division 1 men S individualgo!fchampionship, but he and first Current Issues Forums,” Leavens that will take place at NCAA cham- In the News hti teammates finished second to team champion Wake Forest related. “Based on feedback we ob- pionships events beginning this fall Notes progress University in the 89th annual men’s championships in Winston- tained through evaluation forms that and gambling. “Drug-testing concerns Salem, North Carolina. Story on page 5. were included in registration packets dominated the question-and-answer Catherine”Krt”Green, women’s sessions at all three forums,“ Leavens athletics director at the University said. of Washington, is pleased with the State-of-the-art computer program According to Ursula R. Walsh, the progress in women’s sports. Page Association’s director of research, 2. forum attendees were briefed on sev- Ban on boosters eral different aspects of the proposed The College Football Associa- will select spectators for Final Four championships drug-testing plan. tion will seek a prohibition against “Round and round she goes information with United Missouri gram was written, according to Dan “In Atlanta and Chicago, Dan (Da- all recruiting by representatives of where she stops, no one knows.” Bank of Kansas City, Missouri, which Spencer, DSl’s project leader, to pro- niel F.) Hanley, who is on the Special athletics interests. Page 7. Originally coined by a colorful served as a clearinghouse for the vide an endless list of random NCAA Postseason Drug-Testing Com- Robinson’s day carnival huckster drawing crowds to processing of orders. numbers. mittee, covered the technical and med- The governor of Louisiana pro- the midway’s wheel of fortune, that ical aspects of the testing. This was old saying also could describe the More than 41,000 orders, which “This system was adopted basically done by specialcommittee member claimed May 3 1 as Eddie Robinson request more than 143,000 tickets, to eliminate the hours and hours of process used to determine who gets William D. Bradford in LOS Angeles,’ Day, honoring the athletics direc- have been received for the 1987 Final labor required to conduct a drawing tor and head football coach at tickets to the 1987 NCAA Final Four she explained. “John Black, a member March 28 and 30 at the Superdome in Four. The Superdome has 57,682 manually,” Spencer said. “This pro- of the NCAA’s legal counsel, also was Grambling State University. Page seats for the Final Four, of which just gram allows every application an 6. New Orleans. on hand at each forum to provide No freshmen However, unlike the spiked wooden over 38,000 are available to the public equal chance of being selected.” information on legal aspects of the A Big Ten Conference repre- wheel and its rather limited possibili- Data Systems International, which “Having more seats obviously helps drug-testing plan.” sentative will ask the NCAA Pres- ties, a state-of-the-art computer pro- is responsible for setting up the first make more tickets available to the The Association’s general drug- idents Commission to seek changes gram will help officials till as many computerized ticket drawing ever held public,” Spry said. “There will be testing philosophy and potential pen- in NCAA legislation to make fresh- Final Four ticket orders as possible. at the NCAA national office, will use 6,400 seats available for $50, 16,000 alties were discussed by NCAA Sec- men ineligible in football and “The demand for Final Four tickets an IBM System 36 computer and a available for $35 and 15,600 available retary-Treasurer Wilford S. Bailey in men’s basketball in Division I. always has exceeded the supply,“said program based on a subtractive for $20.” Spry added that applicants Atlanta and Assistant Executive Di- Page 16. Louis J. Spry, the Association’s con- method to generate the series of ran- would receive either tickets or a refund rector William B. Hunt in Chicago troller, who coordinated the statistical dom numbers. The code for the pro- by June 30.
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