4
THURSDAY, SEPTEMBER 4, 2003
ACC
FROM PAGE 1
ACC and its efforts to make the
conference a football powerhouse.
“There’s a lot of uncertainty now,”
Ballen said. “We don’t know what
this is going to bring financially. We
hope that it will be positive but we
don’t know this for sure.”
The expansion provides the ACC
with a chance to place a second
team in the Bowl Championship
Series, which would result in the
conference earning $l3 million.
Plus, since the Hurricanes and
Hokies are mainstays in college
football’s top 25, more lucrative
deals are sure to come. The ACC
now can offer television networks
72 regular-season games to choose
from instead of 54, as it does now.
But the conference lost the cov
eted New York media market
when Syracuse was trimmed from
the expansion plan.
“That was really part of the issue
we had fundamentally with the
consultants' numbers and a sense of
what schools and, ‘Could they bring
the New York market?’” said Dick
Baddour, UNC’s director of athlet
ics. “Was it going to be enough to
make up for the equal share?
“If people are going to watch
ACC football and basketball, we’ve
certainly taken some risk of not
having that market in the mix of
our TV package.”
The addition of Miami and
Virginia Tech also means the con
ference’s money must be divided
among 11 schools instead of nine
—a factor that could prove costly.
The ACC already has taken at
least one precautionary move: The
conference gave each of its nine
schools a record $9.7 million last
year for recovery in case predicted
financial scenarios don’t pan out.
The schools in favor of expan
sion apparently were willing to
take the risk and made it known
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that they were prepared to absorb
a potential loss in revenue.
UNC and Duke, however, were
not as thrilled.
“Already we’re struggling with a
28-sport program and the level of
excellence that is expected from
those programs,” Baddour said. “So
I’m seriously concerned about that
$9.7 million going backward."
The only other guaranteed
money comes in the short term
from a $4 million expansion buy
in that will be divided among the
nine schools.
In making a move that depends
solely on the success of one sport,
the ACC has put itself in a com
promising situation.
Should a 12th school be slow to
come or never come at all —a
football title game likely won’t
become a reality. That revenue loss
could force schools to restructure
their varsity sports’ budgets.
The financial uncertainties
weigh heavily against the revenue
that could come from the addition
of Miami and Virginia Tech.
But only the next years will show
whether expansion was a smart
move for the ACC.
“It remains to be seen,” Baddour
said. “We’re optimistic and we’re a
partner in it, so we are going to go
forward.”
Contact the Sports Editor
at sports@unc.edu.
NCAA
FROM PAGE 1
cent of students entering school in
1996 graduated within six years, a
single percentage point higher
than that of student athletes.
The UNC student athlete grad
uation rate of 64 percent —a drop
of 5 percent from 2002 pales in
comparison to that of the student
body, which is 80 percent.
“We should have no subgroup
From Page Ona
ATHLETICS
FROM PAGE 1
her of the committee.
Open discussion on the topic
went silent until lYustee Jean
Kitchen brought up the topic at
July’s BOT subcommittee meeting.
Shirley Ort, director of scholar
ships and student aid, said mer
chandising funds brought about $3
million to her department last year
funds she said are significant
because the percentage of students
qualifying for aid has increased.
“As the number of needy stu
dents increases and costs begin to
rise, we need to use all revenues
available to us,” Ort said.
University officials said that
although they expect a serious dis
cussion to take place on alternate
sources of revenue for athletics, they
do not think a detailed proposal will
be examined at the BOT meeting.
“I am positive the University
Affairs subcommittee will have this
on their agenda as they look at the
athletic department’s budget,” said
Provost Robert Shelton. “But I’d be
surprised if we get to this level of
specificity.”
Ort echoed those sentiments,
saying merchandising revenue only
would be one funding source looked
at if it is discussed at all.
“The scope of the discussion will
be broader than a single proposal,”
Ort said. “They’re looking at all
graduating below the graduation
rate of the general student body on
their campus,” said NCAA
President Myles Brand in a state
ment released Tuesday.
“Academic reform cannot be
considered a real success until we
have reached that bar.”
But the ACC as a conference did
find success in terms of graduation
rates. Onlv football players at
UNC-CH " and N.C. State
University which had a rate of
i=|
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forms of finances, and (merchan
dising revenue) is one source they
might take a look at.”
Martina Ballen, senior associate
athletic director for business and
finance, said her department is
focusing on the possibility of corpo
rate signage and not on obtaining
additional merchandise revenue.
The University has a long-stand
ing ban on corporate advertising in
sports arenas, but at the July meet
ing of the University Affairs sub
committee of the BOT, subcom
mittee Chairman Rusty Carter ini
tiated discussion on the issue.
Baddour said Wednesday that he
expects those discussions to contin
ue at the BOTs September meeting.
“We’re not discussing corporate
signage itself,” Baddour said.
“We’re talking about the process
that we should use to look at cor
porate signage.”
Although the athletic depart
ment’s overall budget has remained
stable, Ballen said, consistent
increases in tuition are necessitat
ing the need to look at many possi
ble funding alternatives.
“Our scholarship funding is
really a concern,” Ballen said.
“We’re going to have to discuss
how to address this need. Ways of
funding we haven’t had a chance to
look at, we may have to look at.”
Contact the University Editor
at udesk@unc.edu.
44 percent graduated at a rate
of less than 50 percent, the thresh
old proposed as a requirement for
postseason play by the Knight
Commission two years ago.
Florida State University was the
only ACC school to report a gradu
ation rate for all student athletes
that was less than that for the
nation as a whole.
Contact the Sports Editor
at sports@unc.edu.
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Dean Smith Center
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TOBACCO
FROM PAGE 1
said.
The pending legislation, if
approved, will be beneficial to
farmers in the long run, he added.
The tobacco manufacturers
would have to bear most of the sl3
billion cost of the tobacco buyout.
Philip Morris USA, which stated
its support for the buyout, declined
to comment. Other industry giants,
such as R. J. Reynolds and Brown &
Williamson Tobacco Corp., are
against the buyout.
“We’re concerned about how it’s
funded and unreasonable FDA
regulations,” Payne said.
II
yHHf f ™ n j I
DTH/ALLISON MONEY
David Pope stands with a bale of cured tobacco weighing close to 800
pounds. He already had tried to sell the bale Wednesday morning.
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He said that of the sl3 billion
expected from tobacco manufactur
ers, his company would be respon
sible for $3 billion.
He also said that although the
buyout would result in more money
coming into the state, tobacco jobs
would be sacrificed. That means
that for the most part, the future of
the North Carolina tobacco indus
try is unclear, a thought that con
cerns Pope. “The day of the fanner
is limited,” he said. “We’re all hang
ing in limbo.”
The Associated Press
contributed to this article.
Contact the State (J National
Editor at stntdesk@unc.edu.