Indiana University Athletics
Compliance Question Of The Week
Compliance Question Of The Week
Question:
Recruiting Expenses
Answer:
Q. May I attend a recruiting event or just go out recruiting generally if some or all of the expenses are covered by the organizers / prospects / others?
A. No - you can't. Bylaw 13.14 describes the fact that ALL expenses used in the process of recruiting should be expended solely by the institution. No travel, accommodation or other related recruiting expenses can be provided by an outside source.
13.14 USE OF RECRUITING FUNDS
13.14.1 Institutional Control.
All funds for the recruiting of prospective student-athletes shall be deposited with the member institution, which shall be exclusively and entirely responsible for the manner in which such funds are expended.
13.14.4 Slush Funds.
An institution shall not permit any outside organization, agency or group of individuals to use, administer or expend funds for recruiting prospective student-athletes, including the transportation and entertainment of, and the giving of gifts or services to, prospective student-athletes or their relatives, legal guardians or friends.
13.14.4.1 Pooled Resources.
The pooling of resources for recruiting purposes by two or more persons shall constitute such a slush fund. However, this provision shall not apply to persons upon whom a prospect may be naturally or legally dependent.
13.14.4.2 Company Funds.
The use of a company's funds to pay the expenses incurred in transporting a prospective student-athlete to the campus constitutes the use of pooled resources.
So, if you're ever planning to go recruiting when some of the expenses are paid by someone other than IU, please let the compliance office help you figure out what is permissible and what is not. By the time you return, it's too late: and we may be looking at violations and repayments. Some things could be OK (it can be OK to get expense help from a booster under certain circumstances) but there's plenty of pitfalls too. Check out the attached interp as a starting place.
Educational Column - 1 Educational Column
Title: Bylaw 13.14.1 -- Recruiting Services Providing Expenses for Recruiting Purposes (I/II/III)
Item Ref: 1
Date Published: March 17, 2006
Educational Column:
NCAA Divisions I, II and III institutions should note that pursuant to NCAA Bylaw 13.14.1, all funds for the recruitment of prospective student-athletes shall be deposited directly with the member institution, which shall be exclusively and entirely responsible for the manner in which such funds are expended. Therefore, institutions should note that it is not permissible for any outside organization or individual (e.g., recruiting or scouting service, event operator) to provide institutional coaching staff members with expenses (e.g., travel, lodging) to attend any event for recruiting purposes. Such expenses are considered funds donated for recruiting purposes and NCAA rules require that such funds be deposited directly with the member institution, as opposed to being provided directly to an institutional coaching staff member(s). [References: Divisions I, II and III Bylaws 13.14.1 (institutional control); and 13.14.4 (slush funds).]
References
Legislative References
Div. Number Title
I 13.14.1 Institutional Control.
Other
References Educational Columns: 0
Educational Columns: 0
Proposals: 0
Question:
Recruiting Expenses
Answer:
Q. May I attend a recruiting event or just go out recruiting generally if some or all of the expenses are covered by the organizers / prospects / others?
A. No - you can't. Bylaw 13.14 describes the fact that ALL expenses used in the process of recruiting should be expended solely by the institution. No travel, accommodation or other related recruiting expenses can be provided by an outside source.
13.14 USE OF RECRUITING FUNDS
13.14.1 Institutional Control.
All funds for the recruiting of prospective student-athletes shall be deposited with the member institution, which shall be exclusively and entirely responsible for the manner in which such funds are expended.
13.14.4 Slush Funds.
An institution shall not permit any outside organization, agency or group of individuals to use, administer or expend funds for recruiting prospective student-athletes, including the transportation and entertainment of, and the giving of gifts or services to, prospective student-athletes or their relatives, legal guardians or friends.
13.14.4.1 Pooled Resources.
The pooling of resources for recruiting purposes by two or more persons shall constitute such a slush fund. However, this provision shall not apply to persons upon whom a prospect may be naturally or legally dependent.
13.14.4.2 Company Funds.
The use of a company's funds to pay the expenses incurred in transporting a prospective student-athlete to the campus constitutes the use of pooled resources.
So, if you're ever planning to go recruiting when some of the expenses are paid by someone other than IU, please let the compliance office help you figure out what is permissible and what is not. By the time you return, it's too late: and we may be looking at violations and repayments. Some things could be OK (it can be OK to get expense help from a booster under certain circumstances) but there's plenty of pitfalls too. Check out the attached interp as a starting place.
Educational Column - 1 Educational Column
Title: Bylaw 13.14.1 -- Recruiting Services Providing Expenses for Recruiting Purposes (I/II/III)
Item Ref: 1
Date Published: March 17, 2006
Educational Column:
NCAA Divisions I, II and III institutions should note that pursuant to NCAA Bylaw 13.14.1, all funds for the recruitment of prospective student-athletes shall be deposited directly with the member institution, which shall be exclusively and entirely responsible for the manner in which such funds are expended. Therefore, institutions should note that it is not permissible for any outside organization or individual (e.g., recruiting or scouting service, event operator) to provide institutional coaching staff members with expenses (e.g., travel, lodging) to attend any event for recruiting purposes. Such expenses are considered funds donated for recruiting purposes and NCAA rules require that such funds be deposited directly with the member institution, as opposed to being provided directly to an institutional coaching staff member(s). [References: Divisions I, II and III Bylaws 13.14.1 (institutional control); and 13.14.4 (slush funds).]
References
Legislative References
Div. Number Title
I 13.14.1 Institutional Control.
Other
References Educational Columns: 0
Educational Columns: 0
Proposals: 0