Mike
Knobler's March 31 story, "Megabucks, no taxes make colleges cheer"
misrepresents some facts, omits others and makes it impossible for the
reader to get a clear understanding of the NCAA's mission, what the
Association does with its revenue and why the association is tax
exempt. Knobler incorrectly states that the NCAA has operating revenues
of "almost $8 billion…" In fact, the NCAA's annual revenue is
approximately $550 million and the association redistributes 95 percent
of those funds back to member schools to assist with academic and
athletic programs. Those funds provide resources to operate new and
existing academic support programs, assist student athletes in an
emergency, drug testing and education programs, student athlete
insurance programs, and funds 88 championships, among other things.
Knobler
is also off the mark when he infers the NCAA is no different than big
business…and should pay taxes. Not for profit status is linked to the
purpose for which revenues are spent, not the amount of revenue
generated . The NCAA meets its educational mission by providing the
resources and programs necessary for student athletes to be successful
both in the classroom and on the field of competition.
Bob Williams
Managing Director of Public and Media Relations
-30-