NCAA Bylaws 12 and 16

Objectives Provide participants with the tools to have a better understanding of the amateurism and benefits legislation. Enhance the participants ability to apply the legislation to situations they may encounter on campus by working through case studies. The objectives for today are two fold. The purpose of this presentation is to ensure that participants walk away with a better understanding of the amateurism legislation as it pertains to crowdfunding and the awards/benefits legislation as it relates all-star contests and team entertainment. Second, we will work through case studies to ensure participants know how to apply the legislation to scenarios they may encounter on campus.

Overview Crowdfunding. All-Star Contests. Entertainment. As previously mentioned, we will focus primarily on three topics: crowdfunding, all-star contests and team entertainment.

Crowdfunding Let’s start the presentation off by discussing crowdfunding. So what exactly is crowdfunding? (Pause to allow audience members try and define)

What is Crowdfunding? The practice of funding a project or venture by raising monetary contributions from a large number of people, typically via the internet. Crowdfunding is defined as any practice of fudning a project or venture by raising monetary contributions from a large number of people, typically via the internet. Now were are all familiar with sites such as go fund me. However, crowdfunding can be as basic as a letter writing campaign. It is any direct appeal that requests money from a large number of individuals.

Crowdfunding Since Crowdfunding is considered a direct appeal, all funds are unearned. Unearned = any fundraising activity that involves use of athletics ability or involves direct appeal. NCAA Bylaw 12.1.1.1.2 Now as we talk about fundraising for our institutional teams/student-athletes, it is important to remember that crowdfunding is considered a direct appeal and therefore, any funds received through a crowdfunding venture are considered unearned. Unearned funds are any funds received through fundraising that involves athletics ability or any direct appeal. Meaning, that these funds can in no way be earmarked for a specific SA and must go to a program’s general fund.

Crowdfunding (cont.) In all instances athletics staff and boosters MAY NOT donate to a SA or PSA’s crowdfunding site (even if there is no mention of athletics) if the funds go directly to the SA or PSA. Bylaw 12.1.3.2 Now in all instances, an athletics staff member nor a booster may donate to a crowdfunding site, if the funds are going directly to the SA or PSA. That is an important distinction, boosters and staff members may donate to the team’s general fundraising efforts. Provided the funds will not be earmarked for a specific student-athlete or prospective student-athlete.

Crowdfunding (cont.) Effects on a SA’s Eligibility: Once a SA becomes aware that his or her name, picture or likeness appears impermissibly on a crowdfunding site, the SA (or the institution) must take steps to stop the activity (e.g., send cease and desist letter), otherwise, the SA loses eligibility. If the SA was involved in setting up an impermissible crowdfunding site AND takes funds from the site, he or she must be declared ineligible and go through the NCAA student-athlete reinstatement process. Bylaw 12.5.1.1.5 Educational Column 11/06/2014 Now crowdfunding can potentially impact a student-athlete’s eligibility. If a SA becomes aware that his or her name, image or likeness appears on a crowdfunding site impermissible, they (or the institution) must take the proper steps to ensure they are removed from the account (a cease and desist letter). This does not guarantee the site will take it down but does allow the SA to maintain there eligibility. Now on the flip side of the above scenario, if a SA was involved in setting up an impermissible crowdfunding site AND takes the money from that site, the institution must be declared ineligible and have the SA go through reinstatement prior to participating in intercollegiate competition.

Crowdfunding by SAs and PSAs

Crowdfunding by SAs and PSAs Division III legislation DOES NOT ALLOW a SA’s or PSA’s name or picture to be used to promote or solicit funds for a commercial product or service. This includes: • Brick-and-mortar business; • Commercial websites; • For-profit crowdfunding sites; and • Other online businesses. Bylaw 12.5.1.4.2 NCAA Division III Educational Column 11/06/2014 Bylaw 12.5.1.4.2 , precludes a student-athlete from utilizing there name, image or likeness to endorse a commercial product. The same holds true for crowdfunding sites. Now it is important to note that there are some exceptions to this rule of course. Bylaw 12.5.1.3 allows for a student-athlete to use there name, image and likeness provided they are unrelated to athletics. These are your multitalented student-athletes who may also model or may produce a record. In addition, Bylaw 12.5.1.4 permits a business to produce a congratulatory message that may include a picture of a student-athlete and a commercial logo. Outside of these two provisions however, the legislation would hold true. Now finally, you may have Sas who during there time as a prospect participated in advertising that may be contrary to the legislation. For example, they may have received compensation for endorsing a basketball documentary and have there image appear on posters related to the documentary. In those instances, the institution will need to advice the SA to stop receiving any renumeration and send a cease and desist letter retracting permission to utilize the SAs likeness.

Crowdfunding by SAs and PSAs (cont.) SA or PSA MAY NOT use his or her name, picture or athletics reputation to solicit funds through a personal online profile or crowdfunding site if the funds go directly to the SA or PSA. Bylaws 12.1.1 and 12.5.1 Educational Column 11/06/2014 In no instances may a student-athlete or prospective student-athlete utilize there athletics reputation to raise funds through a crowdfunding site. Pretty straight forward contect.

Crowdfunding by SAs and PSAs (cont.) SA or PSA MAY NOT set up a crowdfunding site to solicit funds for competition and practice with an outside amateur team or organization if the funds go directly to the SA or PSA. Bylaws 12.1.5.2 – (k) and 12.5.1 Educational Column 11/06/2014 In addition, a student-athlete or prospective student-athlete may not set up a crowdfunding site to raise funds to participate on an outside amateur team, if those funds are earmarked for a particular student-athlete.

Crowdfunding by SAs and PSAs (cont.) SA or PSA MAY set up a crowdfunding site to solicit funds for an outside amateur team or organization, as long as: • No funds are earmarked for the SA; and • No funds that exceed actual and necessary expenses are earmarked for a particular SA or PSA. Bylaws 12.1.1 ; 12.1.1.1.1 and 12.5.1 Educational Column 11/06/2014 Now on the flip side of this scenario, if the funds themselves are not earmarked for a particular student-athlete, then it would be permissible to utilizing a crowdfunding site in order to raise funds for an outside amateur team. As always, the institution will need to ensure the student-athlete does not receive more than actual and necessary expenses for his or her participation.

Crowdfunding by SAs and PSAs (cont.) A SA or PSA MAY NOT set up a crowdfunding site and use his or her athletics reputation or skill for funds to buy items (e.g., laptop, car, food, school supplies, athletics equipment). Bylaws 12.1.1 and 12.5.1 Educational Column 11/06/2014 Now this will come as no surprise, but a SA or PSA may not set up a crowdfunding site and utilize his or her athletics reputation in order to fundraise for personal items such as a car or laptop.

Crowdfunding by SAs and PSAs However… A SA or PSA MAY set up a crowdfunding site for funds to buy items or engage in activities (i.e., mission trips), as long as there is no relationship to nor mention of athletics. Remember: Athletics staff and boosters may not donate to a SA’s or PSA’s crowdfunding site (even if there is no mention of athletics) if the funds go directly to the SA or PSA. Bylaws 13.2.2 and 16.02.3 Educational Column 11/06/2014 However, if there is no mention of the SA’s status as an athlete, then it would be permissible to fundraise through crowdfunding. As a reminder, even though a PSA or SA may have a permissible fundraiser via crowdfunding, institutional staff members/boosters still cannot donate to the crowdfunding site.

PSA or SA Use of Crowdfunding Use of name or picture to promote or solicit funds for a commercial product. Use of name, picture or athletics reputation to solicit funds if the funds go directly to the SA or PSA Fundraising for participation with an outside amateur team if the funds go directly to the SA or PSA. Fundraising for an outside amateur team if funds go to the general fund. Use of name, picture or athletics reputation to solicit funds to buy items (e.g., laptop, car). Fundraising to engage in activities (i.e., mission trips), as long as there is no relationship to nor mention of athletics. This is just an overview of the parameters we have just discussed. This may be a handy reference to break down what can and cannot be done for SAs and PSAs via crowdfunding.

Institutional Use of Crowdfunding Now we tend to discuss crowdfunding in the light of Sas and PSAs. However, institutions can permissibly use crowdfunding sites to help support its ventures.

Institutional Use of Crowdfunding An institution may use crowdfunding for an institutional fundraiser, as long as: • Funds are not earmarked for a SA; and • Conditions of Bylaw 12.5.1.1 are satisfied (if using SA’s name, picture or appearance). Note: Anyone who donates to an institutional fundraiser becomes an athletics booster of the institution. Bylaws 12.1.1.1.2.1; 12.5.1.1; and 13.02.9 Educational Column 11/06/2014 and 16.02.3 Educational Column 11/06/2014 With any fundraiser we are conducting, we are always asking two questions: 1. Will the fundraiser utilize the image of SAS? 2 And if yes, does it meet Bylaw 12.5.1.1? Provided funds are not earmarked for a particular SA and the conditions of Bylaw 12.5.1.1 are satisfied, it would be permissible for an institution to utilize a crowdfunding site. Now it is important to note that if a SAs name, image or likeness are not being utilized, the institution does not need to do the 12.5.1.1 analysis.

Institutional Use of Crowdfunding (cont.) An institution may fundraise for a SA (or relative): • Circumstances should be extraordinary and beyond SA’s control (e.g., life-threatening illness or natural disaster); • Proceeds must be designated for a specific purpose (e.g., payment of medical bills); • Proceeds may be given directly to the beneficiaries – keep receipt on file; and • Excess proceeds must be given to a nonprofit – keep receipt on file. Bylaw 16.11.1.13 Now Bylaw 16.11.1.13 allows an institution to assist a SA in time of need. The bylaw allows for an institution to fundraise for a specific purpose (may be to fund medical bills) when an extraordinary situation occurs. As noted, we first have to have an event considered extraordinary and outside of the control of the SA; Next, we have to identify a purpose for the funds. Third, it is permissible for you to give the funds directly to the SA or his or her family. However, you must keep a receipt on file to verify why the expenses were provided. Lastly all excess proceeds must be donated to a nonprofit.

Institutional Use of Crowdfunding Funds Raised for Entire Team/Program. Funds Earmarked for a Particular SA for Athletics Purposes. Funds Raised for a SA under Extenuating Circumstances. Here is just a digestible break down of what is and is not permissible for an institution when conducting a crowdfunding campaign.

Case Studies Now that we understand the legislation, let’s test our knowledge through some case studies.

Case Study No. 1 Potato Chip State University’s softball team is traveling to Florida for spring break. They need to raise $5,000 for the trip. They have set up a crowdfunding site and have asked the SAs to send the link in an email to family, friends and former SAs. Is this permissible? What more do you need to know?

Case Study No. 1 (cont.) Potato Chip State University’s Analysis: Are the SAs’ names, pictures or likenesses being used on the crowdfunding site? Are the funds earmarked for a particular SA?

Case Study No. 1 (cont.) Potato Chip State University’s Response: This is permissible provided … If the SAs’ names, pictures or likenesses are used, Bylaw 12.5.1.1 must be followed. The funds may not be earmarked for a particular SA but rather must go into the team’s fund. This would be a permissible fundraiser provided, as always, an institutional fundraiser even using a crowdfunding site must ensure it meets the legislation outlined in Bylaw 12.5.1.1. Further, no funds can be earmarked for a specific student-athlete.

Case Study No. 2 Pretzel College is going on a foreign tour summer 2017. Each SA is required to contribute $500 towards the trip. Tammy Twist’s mother set up a crowdfunding page to raise the $500 towards the trip. What more do you need to know?

Case Study No. 2 (cont.) Pretzel College’s Analysis: What language was used on the crowdfunding site? Was the SA mentioned? Was the institution mentioned? Was the fact that she is a SA and this is for an athletics trip mentioned?

Case Study No. 2 (cont.) Pretzel College’s Response: If the language on the crowdfunding site mentions that that Tammy is a SA and/or that the funds are for an athletics trip, the crowdfunding site is not permissible. The answer to this case study comes down to the language of the crowdfunding page itself. If the page mentions Tammy is a SA or has any reference to it being an athletics trip for Tammy, then it would be impermissible to crowdfund in this manner. However, if the page is general in nature and in no way reference Tammy’s athletics participation (i.e. no pictures in jerseys), then it would be permissible to use a crowdfunding site to raise the money for the trip.

Case Study No. 3 Through his local sports club, Peter Popcorn has been invited to travel to Paris this summer and compete in an elite event. He wants to set up a crowdfunding site to raise money for the trip. What more do you need to know?

Case Study No. 3 (cont.) Peter Popcorn’s Analysis: Are the funds donated to the clubs’ crowdfunding site or are they earmarked for Peter?

Case Study No. 3 (cont.) Peter Popcorn’s Response: If the funds go directly to Peter, this is impermissible since it is for an athletically related activity. Provided the funds go into the general club account and no amount is earmarked for a particular team member, it is permissible for Peter to solicit donations to the site. Since the funds will be earmarked for Peter, the crowdfunding campaign would be impermissible. However, if the structure of the crowdfunding campaign could be adjusted to ensure the funds were going to a general fund for the outside team and not Peter specifically, then it would be permissible to utilize crowdfunding sites in this manner.

Case Study No. 4 Candy Cookie, a soccer SA is interested in participating in a community service trip over spring break sponsored by student activities. Each student must pay $300 to go on the trip. Candy has set up a crowdfunding account to raise the $300. What more do you need to know?

Case Study No. 4 (cont.) Candy Cookie’s Analysis: Are the funds going directly to Candy? Is the trip open to all students or just SAs? Will Candy Cookie be participating in athletics activities while on the trip? Who is Candy soliciting for donations?

Case Study No. 4 (cont.) Candy Cookie’s Response: Provided the trip is open to all students (not just SAs) and there are no athletically related activities, Candy can use a crowdfunding site to raise the money even if the funds go directly to her. However, athletics staff and boosters may not donate to the crowdfunding site since the funds are going directly to Candy. Since the trip itself is for all students and Candy will not be referencing her athletics participation, the crowdfunding campaign would be permissible. As a reminder, in all instances, neither athletics staff members or boosters could donate to Candy’s crowdfunding campaign.

Best Practices when Monitoring Crowdfunding What policies does your institution currently have in place pertaining to crowdfunding? Ask for any volunteers to share any best practices the institution may have concerning crowdfunding.

Funding SA Participation in All-Star Contests

Funding SA Participation in All-Star Contests Since a student-athlete who competes as a member of a squad in any college all-star contest shall be denied further intercollegiate eligibility in that sport, only student-athletes who have exhausted eligibility in the sport are permitted to participate in an all-star contest. Bylaw 14.7.4 Only SAs who have exhausted eligibility may participate in an all-star contest. Bylaw 14.7.4.

Funding SA Participation in All-Star Contests It is not permissible for an institution to fund a SA’s trip to an all-star contest. A SA may receive actual and necessary travel, room, board, apparel and equipment expenses from an outside amateur sports team or organization. Bylaw 16.1.7.1 Bylaw 12.1.5.1 -(a) SAs may not receive anything over actual and necessary expenses. A coaches association is considered an outside amateur sports organization. Educational Column 2001 Column No. 19 - Amateurism - Expenses from Outside Amateur Team or Organization Division: III Date Issued: September 07, 2001

Funding SA Participation in All-Star Contests It is permissible for your institution to provide an award (but not cash) that does not exceed $400 in value for participation in an all-star contest. Bylaw 16.1.7.1 Figure 16-1 Cash as an award is never permissible! From Figure 16-1 • Participation in all-star game $400 (Institution)

Funding SA Participation in All-Star Contests It is permissible for the award to be an expense associated with the all-star contest (e.g., hotel room, airline ticket, etc., but not cash) provided the award satisfies the requirements in Bylaw 16.1. The value of an award may not exceed specified value limits and a SA may not contribute to its purchase in order to meet those limits. Bylaw 16.1.5.4 Figure 16-1 16.1.5.4 Student-Athlete Contribution to Purchase. The value of an award may not exceed specified value limits, and a student-athlete may not contribute to its purchase in order to meet those limits. 

Funding SA Participation in All-Star Contests Example No. 1: The all-star contest event organizer will provide airfare, hotel accommodations, meals and uniforms to all participants and a guest/friend. Per Bylaw 12.1.5.1-(a), expenses for the SA are considered actual and necessary and are permissible. However, the expenses for the guest/friend are not permissible. The reference to actual and necessary expenses is the same as that used throughout Bylaw 12. Official Interpretation Definition of Actual and Necessary Expenses (III) Division: III Date Issued: April 22, 2002 Date Published: April 22, 2002 Item Ref:  4-(d) Interpretation: For the purposes of 2002 Convention Proposal No. 40, actual and necessary expenses shall be defined as any of the following: [References: 14.2.4.3.2 (activities constituting use of a season)] (a) Meals directly tied to competition; (b) Lodging directly tied to competition; (c) Apparel, equipment, and/or supplies; (d) Coaching and/or instruction; (e) Health/medical insurance; (f) Transportation (i.e., expenses to and from practice and competition, cost of transportation from home to training/practice site to home at the end of season); (g) Medical treatment and/or physical therapy; (h) Facility usage; and (i) Entry fees.

Funding SA Participation in All-Star Contests Example No. 2: The all-star contest event organizer will provide hotel accommodations, meals and uniforms to all participants but not transportation. An institution may provide an airline ticket as the all-star participation award but per the maximum value listed in Figure 16-1, ($400). However, if the airfare exceeds $400, the institution could not provide the ticket and have the SA pay the additional cost. If round trip airline ticket is $600, it is not permissible for the institution to purchase the ticket and have the SA pay the additional $200. However, the institution may purchase a one way ticket if under $400. An institution should be paying the expense as opposed to giving the SA funds to purchase the ticket.

Entertainment

Entertainment An institution, conference or the NCAA may provide reasonable entertainment (but may not provide cash for such entertainment) to SAs in conjunction with practice or competition. Bylaw 16.7.1 Official Interpretation Institution providing cash to student-athletes for team entertainment related to away-from-home contests Date Published: January 30, 1992 Reasonable as determined by the institution and should be on par with regular student life.

Entertainment (cont.) Complimentary tickets to professional sports contests shall not be provided to SAs, unless the tickets are provided by the institution (or by a representative of athletics interests through the institution) for entertainment purposes to SAs involved in an away-from-home contest. Bylaw 16.7.1.1 The professional sports organization may not provide tickets directly to the student-athletes. They must be donated to the institution for distribution.

Entertainment (cont.) Any practice on an extended road trip: At the competition site; On direct route between campus and the first competition site; or On a direct route between competition sites. May not schedule practice sessions at other locations to provide entertainment. Bylaw 16.7.2 Golf team from Baltimore is competing in Florida over spring break. It would be impermissible for them to drive to Dublin, OH to play Muirfield Village G.C. (#15 course in the nation) on their way to Florida. The team could stop and play any course that is on the direct route from Baltimore to Florida.

Case Study No. 1 A coach would like to take her team to a local pumpkin patch to get pumpkins and go on a hayride. They are outside of the playing and practice season. Is this permissible? Is entertainment permitted outside the season?

Case Study No. 1 Response Entertainment may only be provided in conjunction with practice or competition. Since the team is outside the playing season, institution may not provide expenses for the activity. Practice and competition may only take place when a team is within their playing season---championship and non-championship segment.

Case Study No. 2 A local Division I institution has offered a Division III institution’s basketball team complimentary admission to its home opener. The game occurs during the DIII team’s playing season. May the DIII team attend? Note the DIII team is within their playing season.

Case Study No. 2 Response Yes, the activity is permissible. A Division I institution may provide game tickets to a Division III institution, provided they are donated to the institution. The team entertainment legislation allows an institution to provide entertainment expenses for SAs in conjunction with practice and competition. The DI team is not a professional sports organization. It is permissible for an institution to receive complimentary admissions to another institution’s contest and distribute them to SAs as entertainment during the playing season.

Case Study No. 3 A coach wishes to take her team on a dinner cruise outside the playing season under the Occasional Meal legislation (Bylaw 16.11.1.5). Is this permissible? Is this more than just a meal? Note it is outside the playing season.

Case Study No. 3 Response Since a dinner cruise would include entertainment in conjunction with the meal and this is planned to occur outside the playing season, this is not permissible. Cannot separate entertainment from the meal, ( unless SAs close their eyes for the entire boat ride ). The entertainment is inherent in the dinner cruise. Therefore, this is more than just an occasional meal, it would also constitute entertainment.

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