By Nick Pugliese
SourceMedia Group News
The six BCS conferences recently were put on notice by Iowa’s U.S. senators that their non-profit status could be in jeopardy.
Republican Chuck Grassley and Democrat Tom Harkin sent letters to the Big Ten, Big 12, Pac 10, Southeast, Atlantic Coast and Big East conferences asking them to disclose their expansion plans as well as financial information pertaining to their television contracts and other agreements.
The Big Ten letter was dated June 10 when conference expansion rumors were flying and the advent of super conferences at the possible expense of the Big 12 Conference, which includes Iowa State University, appeared likely. A week later, the Big 12 had survived, even though Colorado and Nebraska had bolted for the Pac 10 and Big Ten, respectively.
A spokesperson for Grassley said the letters were not about challenging conference expansion as much as questioning the BCS conferences’ non-profit status. Beth Levine pointed out that Grassley, the ranking Republican on the Senate Finance Committee that oversees tax-exempt organizations, has a long-standing reputation for questioning the non-profit status of various organizations.
“This falls into the same category,” Levine said.
Levine said most of the conferences have acknowledged receiving the letter. However, the Iowa senators are still seeking additional information before deciding on the next step, which could be a congressional review into conference realignment. On the day Nebraska joined the Big Ten, Commissioner Jim Delany said they were not finished with expansion.
In the letter to the Big Ten, the senators expressed concern that the conference’s expansion appears “to be designed not to further the charitable operation of the Big Ten. Rather it appears that invitations are being extended because of the major media markets where they are situated. Thus the invitations to join the Big Ten seem to be extended for the sole purpose of enhancing the financial bottom line that television contracts, marketing and promotional activities will bring member institutions.”
The letter to the Big Ten asked conference officials to provide:
- Copies of the Big Ten Network’s income tax returns for the past three years and an explanation of the ownership arrangement with Fox Cable Networks.
- Copies of all “proposed expansion, merger or consolidation plans the conference has considered, developed, requested or otherwise discussed and explain how the conference decided on which schools to invite.”
- A detailed list of revenue generated by corporate sponsorships.
