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House Case Portends Reform for NCAA School Financial Reporting

Author

Steve Ulrich
August 26, 2024 • Estimated Reading Time: 12 minutes

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AUGUST 26, 2024 | written by STEVE ULRICH

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TOP STORY
1. House Case Portends Reform for NCAA School Financial Reporting

by Daniel Libit, Sportico

“The NCAA is exploring potentially significant changes to its membership financial reporting system (MFRS), the accounting process by which schools annually disclose their athletic departments’ revenues, expenses and capital. While the association has made various tweaks to the MFRS over the last decade, there is increasing pressure to tackle long-standing criticisms about the system’s perceived shortcomings, as well as to address the dawning era of college athlete compensation.

Originally adopted in 2003, the MFRS is under new scrutiny in the wake of the House v. NCAA proposed settlement, which relies on the system to calculate both the past damages amount as well as the injunctive relief - athlete revenue sharing that would take place over the next decade. Which MFRS categories should be included in establishing the revenue “pool” has been the subject of recent debate among expert witnesses.”

» Situational Awareness. “NCAA constitution, Article 2(D)(1)(c) states that all members of the NCAA must submit annually its financial data as determined by the division detailing operating revenues, expenses and capital relating to the intercollegiate athletics program. Division III members are provided with two methods in which to meet the constitutional requirement; submit financial data annually to the NCAA via the Membership Financial Reporting System or submit the EADA Certificate of Completion to the NCAA via the Membership Financial Reporting System.”

» Between The Lines. “A number of MFRS categories lack clarity, leaving much interpretation to the schools, such as with the catch-all category “other operating revenue.” As Sportico previously reported, there’s so much wiggle room in the process that a handful of schools manage each year to claim a perfectly balanced budget, down to the dollar.”

» Quotable. “There needs to be more consistent and clarified financial reporting so that those making decisions know what they are basing their decisions on,” said Katie Davis, a partner at accounting firm James Moore & Co. who is helping to coordinate the College Athletic Business Management Association task force. “You’ve got [college] presidents and chancellors at the table. You’ve got attorneys and lobbyists and all these others that maybe don’t fully understand what the financials are telling them, because it is not clear how the NCAA has defined some of the categories.”

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SOCCER (M)

2. OWU’s Martin, NCAA Wins Leader, To Retire

“Jay Martin, the winningest coach in NCAA men’s soccer history and head men’s soccer coach at Ohio Wesleyan University since 1977, will retire as the Battling Bishops’ head coach after the 2024 season, it was recently announced by athletics director Doug Zipp.

Martin will continue as a full professor in Ohio Wesleyan’s department of health and human kinetics. Associate head coach Matt Weiss will take over as the Battling Bishops’ head coach after the 2024 season.

Teaching has always been near and dear to Martin’s heart. “I’m going to continue on the faculty because I enjoy teaching,” he said. “That’s one of the reasons I stayed here so long. Other institutions that offered jobs wouldn’t have allowed me to teach.”

» Why It Matters. “With a total of 762 wins, Martin is the winningest coach in NCAA men’s soccer history. Heading into the 2024 season, he has guided his 46 Battling Bishop soccer teams to a 762-164-81 record. His career winning percentage of .797 entering the 2024 season ranks 14th all-time in the NCAA and fifth in NCAA Division III.”

» Quotable. “It’s time,” Martin said. “My heart wants me to continue, my brain wants me to continue, but my body says no. I clearly don’t have the energy I had 10-20-30 years ago. The irony is that I think I’m a better coach than I was 10-20-30 years ago in terms of tactics, and I think I’m still good at what I think are two of the most important areas of coaching, empowerment of players and relationships, but it’s time for someone younger to bring in new energy to the program.”

BASKETBALL (M)

3. Bialik to Produce Film on YU Maccabees’ Historic 50-Game Winning Streak 

by Rikki Zagelbaum, YU Commentator

“A film chronicling the YU Maccabees men's basketball team's 50 game winning streak from 2019 to 2021 is set to be produced by former Jeopardy! host Mayim Bialik.

The film, titled “The Maccabees,” will cover the period during which the YU Maccabees ascended to the top of the NCAA’s Division III national rankings. At the time, their streak was the longest active winning streak in men’s college basketball.

Elliot Steinmetz, a lawyer who has been coaching the Maccabees since 2014, will be spotlighted in the film. According to Deadline, the film will also focus on the players’ commitment to Judaism throughout their winning streak, which included creating a schedule that worked for their religious needs, including observing Shabbat and Jewish holidays and fasting on fast days.”

» Driving The News. “The team’s most prominent player, Ryan Turell, later joined the Motor City Cruise for two seasons, becoming the first Orthodox Jew to play in the NBA’s minor league, the G League. Turell is now set to play professionally with Ironi Ness Ziona in the Israeli Basketball Premier League, the country’s top professional basketball league. He was also featured in an Amazon Prime documentary about the G League last year.”

» What They’re Saying. “Who would’ve ever dreamed that a basketball team from the nation’s most prestigious religious Jewish university could reach the DIVISION 3 NCAA finals,” Balik said. “Our company is proud to bring this truly unbelievable and inspiring story to life, and we are eager to find partners who believe in continuing the message that Coach Elliot Steinmetz and the Maccabees of Yeshiva University were able to spread in their historic run.”

ROUNDUP

4. Lightning Round ⚡️ 

» 🗞️ News. “Layoffs are coming to the University of California, Santa Cruz as the institution tries to get a handle on its budget, Chancellor Cynthia Larive said in a message to campus Aug. 20. The public university’s fiscal 2024 year, which ended June 30, showed it had a whopping $107 million deficit in its core funds, which include state appropriations, tuition and fees.”

» 💰️ Finances. “Moody's Ratings has downgraded Whitworth University's issuer and revenue bond ratings to Baa2 from Baa1. The outlook remains negative. The downgrade of Whitworth's issuer rating to Baa2 from Baa1 is largely driven by sustained declines in enrollment and net tuition revenue which is expected to lead to continuing operating deficits through at least fiscal 2025.”

» 💰️ Finances. “Moody's Ratings has downgraded Centre College issuer and debt ratings to Baa1 from A3. The college had total debt outstanding of $179 million at fiscal end 2023. The outlook has been revised to negative from stable. The downgrade of Centre's issuer rating to Baa1 from A3 is driven by an escalation of operating deficits and potential strain on unrestricted liquidity. Following a deep operating deficit in fiscal 2023, the college's financial projections reflect expectations of further significant operating deficits through fiscal 2025.”

TRANSACTIONS
5. Comings and Goings

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