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UO Senate voted in favor of sharing athletic revenue
In brief
by Ryan Knutson | News Reporter
The University Senate overwhelmingly passed a motion on Wednesday that asks the athletic department to share its profits with the academic budget if the department earns excess revenue.
The University Senate, which functions as an advisory body in this case, doesn't have the power to mandate that the athletic department share its revenue, and the motion's current language leaves a lot of wiggle room in terms of how revenue sharing would be accomplished. The sharing doesn't necessarily mean direct contributions of cash, though, but could include program support or scholarships.
But if the University opens the door for revenue sharing in one direction, it inevitably would lead to the athletic department asking for money from the academic general fund if its budget runs a deficit, said professor emeritus Frank Stahl.
"Any effort to try and build a firewall to the academic budget and the athletic budget is undermined by this motion," he said. "If you open a one way tunnel, it's going to run both ways."
Stahl also cautioned that if the athletic department one day funds a large portion of the University, it would probably ask for a greater say in its governance.
Given the possibility of the athletic department's upcoming debt repayments for the basketball arena, it would take five to 10 years to realize enough profit for revenue sharing, University President Dave Frohnmayer said, adding the athletic department would not dip into academic funds. If that occurs, the University will join Ohio State University, the University of Michigan and the University of Notre Dame with athletic departments that have revenue sharing, said professor Paul van Donkelaar, who proposed the motion.
rknutson@dailyemerald.com
The University Senate, which functions as an advisory body in this case, doesn't have the power to mandate that the athletic department share its revenue, and the motion's current language leaves a lot of wiggle room in terms of how revenue sharing would be accomplished. The sharing doesn't necessarily mean direct contributions of cash, though, but could include program support or scholarships.
But if the University opens the door for revenue sharing in one direction, it inevitably would lead to the athletic department asking for money from the academic general fund if its budget runs a deficit, said professor emeritus Frank Stahl.
"Any effort to try and build a firewall to the academic budget and the athletic budget is undermined by this motion," he said. "If you open a one way tunnel, it's going to run both ways."
Stahl also cautioned that if the athletic department one day funds a large portion of the University, it would probably ask for a greater say in its governance.
Given the possibility of the athletic department's upcoming debt repayments for the basketball arena, it would take five to 10 years to realize enough profit for revenue sharing, University President Dave Frohnmayer said, adding the athletic department would not dip into academic funds. If that occurs, the University will join Ohio State University, the University of Michigan and the University of Notre Dame with athletic departments that have revenue sharing, said professor Paul van Donkelaar, who proposed the motion.
rknutson@dailyemerald.com
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posted 2/14/08 @ 9:44 AM PST
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"It is of the utmost importance to safeguard the Legacy Fund and preserve its principle with a conservative investment strategy," Sayre wrote. (Continued…)
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