A. INTRODUCTION

This section looks at the major operational issues of UTSA's potential transition from NCAA Division I-AAA to Division I-AA and then to Division I-A. In addition to the requirements of NCAA legislation addressed in the previous section, there are practical issues that must be reviewed in-depth to develop strategic remedies; these include an assessment of the athletics program's current profile, establishing the most appropriate timeline for advancement, recruiting football student-athletes, football scheduling, and achieving suitable conference membership(s).

The Consultants' observations and recommendations are stated at the end of this section.

B. PROFILE OF UNIVERSITY OF TEXAS AT SAN ANTONIO ATHLETICS PROGRAM

A review of UTSA's Athletics Program and current conference membership is essential to exploring its options for NCAA Division I–AA and I-A membership. In 2005-2006, UTSA competed in NCAA Division I-AAA while sponsoring 15 sports: eight (8) for women (Softball, Basketball, Tennis, Golf, Indoor and Outdoor Track, Cross Country and Volleyball) and seven (7) sports for men (Baseball, Basketball, Tennis, Golf, Indoor and Outdoor Track, and Cross Country). In 2006-2007, UTSA will add women’s Soccer.

Southland Conference Membership
UTSA is a member of the Southland Conference whose 2005-2006 membership numbers eleven (11) institutions: Lamar University, McNeese State University, Nicholls State University, Northwestern State University, Southeastern Louisiana University, Sam Houston State University, Stephen F. Austin University, Texas State University, University of Louisiana Monroe, University of Texas-Arlington and University of Texas-San Antonio. All of these universities are state-assisted. University of Louisiana Monroe becomes a full member of the Sun Belt Conference, effective July 1, 2006.

In February 2006, the Southland Conference Board of Directors formally approved a number of measures that will affect the competitive alignment of the league when it expands to 12 institutions on July 1, 2006.

The University of Central Arkansas (UCA) and Texas A&M-Corpus Christi (TAMUCC) become the newest members of the Southland Conference and will bring the league to its largest alignment in its 42-year history. UCA will receive full league schedules in 2006-07 in all Conference sports except football; it will begin football league play in 2007. Currently, Texas A&M-Corpus Christi does not sponsor football; however, like UTSA, TAMUCC is now conducting a feasibility study for adding football.

The 2006-2007 Southland Conference membership will include eight (8) Division I-AA (football-sponsoring) members and four (4) Division I-AAA (non-football-sponsoring) members, two of which are studying the feasibility of sponsoring football.

Southland Conference Football
Southland Conference football ranks among the best Division I-AA leagues in the nation, and enjoys an annual expectation of competing for the national championship with multiple teams advancing to the NCAA playoffs. Three years ago, McNeese State finished the regular season ranked No. 1 in the nation, and advanced to the national championship contest, the sixth such title game appearance since the league joined I-AA in 1982. All told, Southland teams have played in 80 Division I-AA playoff games in 22 years, winning 40 of the contests.

Southland Conference Championships
In 2006-2007, all sixteen (16) of UTSA's sports will compete for Southland Conference championships. The only Southland Championship for which UTSA will not compete next year is football.

Southland Conference Travel
The distance in miles between UTSA and the respective members of the Southland Conference in 2006-2007 is shown below:

C. DIVISIONS I-AA AND I-A CONFERENCE MEMBERSHIP OPTIONS

Division I-AA Conference
If UTSA adds Division I-AA football and chooses to compete in football in the Southland Conference, the University will have the benefit of a full football schedule and strong competition. If UTSA sponsors football and plays in the Southland, the University will then compete for each of the seventeen (17) sports for which the Southland provides championships.

If UTSA decides to advance as rapidly as possible to Division I-A, then it will not be practical to compete in I-AA football in the Southland Conference. The preliminary timeline for football advancement shown in Item F. on pages 11-13 of this section reflects this possibility. The decision to do this should not affect UTSA's participation in the Southland Conference for sports other than football; the University of Louisiana Monroe set the precedent for such separate and concurrent competition in both Division I-A outside the Southland and all other sports within the Southland during the years 1994-1995 to 2005-2006.

UTSA will have the following two options regarding the issue of Division I-A conference membership:

1. Maintaining Independent Status
Moving to NCAA Division I-A may require UTSA to maintain independent status, at least for a period of time. There are many reasons why this is a difficult option, including the following:

• The difficulty in scheduling the required number of games - especially home games - versus NCAA Division I-A opponents, as described in Section IV. NCAA Legislation. Note: Division I-A institutions are required to play at least 60 percent of their football games against Division I-A institutions and to play a minimum of 5 home games against Division I-A institutions.
• • The lack of adequate access to post-season bowls, television exposure, and revenue sharing.

2. Joining an Existing Conference

In the existing configurations of NCAA Division I-A conferences, there are three possible options for UTSA football in I-A: the Sun Belt Conference, the Western Athletic Conference and Conference USA (C-USA); the most geographically advantageous option for UTSA is Conference USA because of its four Texas members. However, securing an invitation for membership in a Division I-A conference will be a major challenge for UTSA.

a. National and Regional Factors in Intercollegiate Athletics

Described below are basic dynamics that define the environment in which UTSA would seek membership in a Division I-A conference:

Potential Equity Payment to the Southland Conference
If UTSA moves to a Division I-A conference, the University must provide two full years advance notice to the Southland Conference or there will be a withdrawal fee of $250,000. During the two-year period, the University must pay dues and fees but is not eligible for conference revenue sharing; however, the NCAA broad-based revenue distribution formula is not forfeited. Further, upon notice of an institution's intent to withdraw, the institution's teams become ineligible to compete for conference team championships on a date determined by the remaining members.

Potential Equity Payments to a I-A Conference
In addition to the concerns described above regarding leaving the Southland Conference, UTSA would be required to make an equity payment to a Division I-A conference. This payment represents the value of the opportunity to participate in the I-A conference and enjoy the benefits of regular season scheduling, television exposure, bowl game access and championships. It may well be in the seven figure range and usually can be paid over a period of years.

The Cartel of Intercollegiate Athletics
As an industry, Intercollegiate Athletics does not operate in the free enterprise market where each university is permitted to pursue total domination of all others without regard for the viability of their competitors’ athletics programs. Rather, Intercollegiate Athletics functions as a cartel where all members agree to mutual constraints to attempt to achieve “a level playing field” for athletics competition. In the cartel, each university seeks to dominate, but it must also act to protect the relative strength of its competitors. This is especially problematic for Division I-A independents’ football scheduling.

Role of Division I-A Athletics Conferences
The NCAA has the lead role in structuring and regulating the desired "level playing field" on the national scene; however, regular season competition is the industry's core endeavor and it is conducted primarily on a regional basis. The regular season is the domain of conferences featuring traditional rivalries and it generates essential gate receipts and television revenues from home games. Again, these factors are most significant in Division I-A; therefore, a Division I-A athletics conference is the central organization for the following:

• Creating and monitoring the relative parity of competition through legislation, education and compliance checks


• Scheduling balanced regular season competition


• Promoting and televising regular season games, conference tournaments and championships


• Generating and sharing revenues


• Recognizing excellence and crowning champions

All of these activities draw from and add value to each member's investment in the conference enterprise.

b. Complexities of UTSA Securing Membership In a Division I-A Conference

To function effectively, a Division I-A conference must have member universities who contribute value at least commensurate with the benefit each one receives from their membership. The two main questions that UTSA will face in its quest for membership in a Division I-A conference are as follows:

(1) ""Is the condition of UTSA's total Athletics Program and its Athletics facilities up to the standards of our Division I-A conference?"

Implications for UTSA:

• The University must make its Intercollegiate Athletics Program a high priority in terms of inclusion in its Institutional Mission, administrative support, resource allocation and timely decisions regarding daily operations. This commitment is foundational to all others; UTSA Athletics will never achieve a successful Division I-A status without that nurturing environment.
  
• The existence and long range potential of the UTSA football program will create the possibility of gaining membership in a I-A conference; however, the level of competitiveness of all sports - and especially men's basketball due to ticket revenue and television ratings implications - will be a major issue in the Division I-A conference's evaluation process of UTSA. The University must establish a strong support system to achieve academic and competitive success, media interest and a large fan following in men's basketball. All other men and women's sports need to be reasonably competitive, too.
  
• Athletics facilities for player development, practice and competition must be comparable to those of the targeted I-A conference. Therefore, as UTSA plans for the Proposed Athletics Complex to support football and most other varsity sports, the University must keep this I-A comparison in mind. The standard of quality in function, aesthetics and spectator amenities must be that of Division I-A or UTSA will be hindered in its advancement potential. One significant advantage in this regard is the Alamodome’s high quality, ready availability and absence of required investment capital from UTSA.
  
• To accomplish the timely construction of the proposed Athletics Facilities Complex, UTSA has the following time-sensitive initiatives that must be accomplished:
  
  • Participating fully in the University’s recently declared emphasis on 2006-2007 as a "Strategic Planning Year."
    
  • Passing a student referendum in Fall 2006 to increase student fees for the costs of operations of athletics in the advancement to Division I-A.
    
  • Purchasing the land on which construction of the Proposed Athletics Complex will take place. If land cannot be acquired, proper planning for on-campus construction must commence as soon as possible.
    
  • Working with officials of the City and County to prepare for public referendums to authorize bond issues for new facilities. This will include partial funding for a shared public use Proposed Athletics Complex. The immediate concern is to develop support among City and County officials to achieve inclusion in the bond initiatives. This must be followed by strategic efforts to secure voter approval.
    
  • Starting the Special Campaign for Athletics Facilities to identify funding sources for the Proposed Athletics Complex. Successful completion of this initiative will enable UTSA Athletics to accomplish its strategic goal of using external funding sources for facilities construction and student fees funding for sports programs operations.

(2) "What value does UTSA add to our Division I-A conference, short term and long term?" Implications for UTSA:

• UTSA must begin now in preparing its clear and compelling response to this critical question. To do this effectively, the University must articulate its strengths and address its weaknesses. The strengths must include references to the rapid growth of the University, its position in the UT System with a commitment to excellence, its location in the dynamic San Antonio market (largest city in Texas without I-A football), strong corporate and civic support plus the preferred tourist destination status of San Antonio with the city and University's proven abilities to sponsor NCAA Regional and National championships, especially the Men's Basketball Final Four.
  
• This message must be presented consistently in a personal manner to appropriate leaders of the Division I conference.

D. FOOTBALL SCHEDULING

Division I-AA
As described in Section IV. NCAA Legislation, in Division I-AA UTSA would have to create an acceptable schedule of 50 percent of its opponents being Division I-AA and/or I-A opponents. There would be no problem achieving that schedule in Division I-AA, due to their Southland Conference membership. However, UTSA also would have to consider the best timeline for beginning their competition against Southland Conference members. Southeastern Louisiana’s timeline for entering Southland competition provides a good model to consider; they chose to compete their first two years in Division I-AA as an independent, rather than accepting immediately a full schedule of Southland opponents. This permitted SLU to schedule some lesser opponents in the first 2 years and compete selectively against Southland Conference schools and other I-AA opponents.

Division I-A
While there would be some leeway in the first year of I-A NCAA Multi-Divisional Reclassification, UTSA would be required to comply completely in its scheduling during the second year of that process and thus compete in 60 percent of its games versus Division I-A opponents. The majority of NCAA Division I-A minimums can be achieved through conference scheduling; therefore, membership in a Division I-A conference is extremely valuable. Regardless of which NCAA Division I-A conference UTSA may join, there will be increased distance of travel and greater expense. A potential for more missed classes for student-athletes will be alleviated by the ability to schedule more charter and commercial flights than is currently done with the Southland Conference scheduling. All of these factors emphasize the significance of gaining membership in the proper conference.

To receive the maximum benefit from football scheduling, UTSA will need to establish specific criteria for all non-conference competition; shown on the next two pages are some recommendations for criteria and policy issues on the subject:

Scheduling Criteria

1. Peer institutions: Develop a list of universities against whom competition in football is desired.

2. NCAA Requirements: Football must comply with NCAA Division I-AA and/or I-A scheduling minimums.

3. Competitive Issues: Develop a home and away schedule that offers football the best possible opportunity to be competitive, with a potentially favorable win-loss record. 

4. Home and Away Balance:

a. Develop an optimal home and away balance.

b. Design scheduling agreements with opponents several years in advance.

c. Establish parameters on scheduling less competitive opponents, i.e., maximum number of competitions per year, home games only, etc.

5. Financial terms/Guarantees:

a. Establish baseline minimums and maximums for away and home guarantees.

b. For "home and home" games, secure an amount that minimally offsets travel. 

c. Negotiate away single games (non-return games) that offset travel expenses as well as generate additional revenues.

6. Recruiting: Schedule games in specific key recruiting areas to attract potential recruits, encourage media exposure and/or to fulfill promises to current student-athletes.

7. Contracts:

a. Develop an approval process for contracts for all home and away competition.

b. Agree to forfeiture penalties for unilateral withdrawal from contract.

c. Contracts should include provisions for complimentary tickets and identify source for game officials.

8. Alumni Issues: Schedule games to play in markets where a strong UTSA alumni base exists and/or where future students are identified.

9. Geography: Define the acceptable distance for travel using common modes of transportation: bus, commercial or air charter.

10. Promotional Issues: Coordinate games (dates, opponents, etc.) with other University special events to create a combined promotional impact for Athletics and the greater University.

Scheduling Policies

1. Class Absence: Generally, football team travel has fewer class absence issues than almost any other sport. However, UTSA should define what is practical within the context of travel for conference and non-conference competition; be consistent within the University's academic policies.

2. Calendar Issues: Establish a timeline for approval of scheduling to ensure that best opportunities are secured. Be fexible and receptive to schedule changes if they advance the strategic objectives of UTSA.

3. Travel party policies: Establish the size of the travel party (to include support staff) and a standard for per diem and rooming arrangements.

E. RECRUITING

In Division I-AA, UTSA will be able to recruit football prospects predominately within its own state and especially south Texas, which is not so heavily recruited as many other parts of Texas. UTSA will be an extremely attractive choice for many Texas high school football players. UTSA will need to recruit out of state for some special needs, as is the case with most Texas I-AA football programs. Adding football should also enhance recruiting for other sports as well as encouraging regular students who are looking for a well rounded collegiate experience.

Membership in NCAA Division I-A will require UTSA to strengthen and expand its football recruiting efforts to attract higher-level prospects. This means that recruiting expenses will increase commensurately. However, UTSA should not need to recruit nationally in football; sufficient numbers of Division I-A quality student-athletes are located in its geographic region.

As shown in the pro forma, the ratio of in state versus out-of-state students for football scholarships was calculated at 90/10.

F. TIMELINE FOR ADVANCEMENT

UTSA has not yet established an official timeline for starting football. However, an expedited timeline for advancement to Division I-A is shown on the following pages:

G. CONCLUSIONS AND RECOMMENDATIONS

UTSA would face many challenges in advancing its Athletics Program from NCAA Division I-AAA to I-AA and then to I-A. Ultimately, the University would control issues such as increased internal funding, many aspects of facilities improvements and enhanced Athletics Support Systems. Externally, the University would have to encourage and achieve a positive response from others, such as securing adequate external funding and gaining Division I-A conference membership.

Further, the early years of the Football Program would require a great deal of preparation and patience by all University constituencies.

1. UTSA must review all available data to determine the most appropriate level of membership (NCAA Division I-AA or I-A) for its Football Program; this includes an assessment of potential external support from all constituent groups.
   
2. UTSA should work to increase support from its staff, students and external constituents for adding football, especially if membership in NCAA Division I-A is chosen. This can be best achieved through public relations and marketing campaigns that describe the requirements as well as the benefits of NCAA Division I-A membership.
   
3. If membership in NCAA Division I-A is chosen, UTSA should assess its options for Division I-A conference membership and seek opportunities for informal interaction with leaders of selected institutions. However, it is advisable for UTSA to secure an invitation to join a Division I-A conference prior to the University declaring officially to enter NCAA membership in Division I-A. This will require a well-coordinated effort by the University, its alumni, San Antonio corporations and all segments of local community.
   
4. If membership in NCAA Division I-A is chosen, UTSA should begin its strategic planning process for the transition to NCAA Division I-A using the results of this Feasibility Study and any available market assessment data.