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CASE 96

National Collegiate Athletic Association Ethics

and Compliance ProgramThe NCAA Has Many

Balls in the Air

CASE NOTE FOR INSTRUCTORS

This case examines the role of the National Collegiate Athletic Association (NCAA) as the ethical

conscience of college football. Students will see how vital this oversight is in college football culture as

football contributes significantly to the influx of revenue to its universities and colleges. As is most often

the case, when a sole emphasis is placed on profits, ethical conduct can be lacking. In some instances, this

focus on revenue has changed the role of coaches from mentors to promoters, and the role of university

administrators from overarching authorities to caterers to the football program.

The NCAA was formed under the premise of protecting student athletes from being exploited or

endangered. There are three divisions under the NCAA’s authority, and universities can choose which

division they wish to be a member of depending on the level of competitiveness they desire. Universities

are given the freedom to enact their own rules and policies that are based on the principles set forth by the

constitution of the NCAA. This gives universities a level of responsibility and accountability. The bylaws

of the constitution explain the expectations of ethical conduct and the disciplinary actions that will take

place for violations. The NCAA takes the enforcement of rules seriously and tries to ensure the penalties

fit the violation if misconduct does occur. The organization also makes sure the penalties are handed

down in a timely manner, not only to indicate the seriousness of the infraction but also to maintain a

credible and effective enforcement program.

In some cases, traditional football culture has become toxic and affects not only coaches, players, and the

administration, but also their surrounding communities. This is evidenced in the examples of the Penn

State and Ohio State scandals discussed in more detail in the case.

Universities that have a stronger ethical culture engage in self-reporting violations to the NCAA and are

less likely to find themselves in the midst of a major scandal. Because of the strict policies of the NCAA

and its mission to protect students, even those who self-report will find themselves subject to penalties of

misconduct, but the effects are not as profound as they would be if they were involved in a cover-up. The

University of Alaska Fairbanks is used as an example.The University of Mississippi’s football team, the

Ole Miss Rebels, was charged with 21 college football violations. Academic misconduct among players is

also becoming a significant issue. Ole Miss admitted it had engaged in misconduct, fired coaches

involved in the misconduct, and instituted a self-imposed one-year bowl ban. Academic misconduct

among players is also becoming a significant issue At the University of North Carolina Chapel Hill, it was

discovered that 3,000 students—many of them athletes—got credit for classes they did not attend, did not

do significant work, and/or were not supervised by a professor. This seems to indicate a lack of

institutional control.

In the past few years, compensation for college players has taken on legal proportions. In a 2014 antitrust

lawsuit, a federal judge ruled that the NCAA could not prevent players from selling the rights to their

likeness and names, although it could limit the amount of compensation players received if it amounted to

more than $5,000 annually. The money would be placed in a trust and made available to athletes after

graduation. However, an appeals court later rejected this ruling. Paying student-athletes is a controversial

issue. On the one hand, some believe it is unfair that schools can make so much money of the talent of

athletes without compensating them. On the other hand, there is a great concern that compensation could

compromise the athletes’ integrity and distract them from their academic careers.

This case should demonstrate that corporate culture and business ethics is not limited to businesses, but

also applies to schools, nonprofit organizations, government institutions, and so on. As a result, it is

crucial that these organizations take the same precautions against misconduct as for-profit businesses.

This case should also help students gain a better idea of the NCAA and its role in regulating college

sports. Finally, it is helpful to demonstrate how some schools exert ethical leadership by reporting

violations to the NCAA—despite the possibility of penalties—and disciplining those found to be

violation.

QUESTIONS AND DISCUSSION

1. How does the NCAA encourage collegiate football programs to develop a culture of ethics and

compliance?

The NCAA strives to objectively set forth and enforce standards of conduct. It also encourages and

helps universities establish their own systems of compliance and control, since the ultimate

responsibility lies with the universities and the cultures they create. Even when colleges impose

2. Is it a valid criticism that the NCAA is based more on compliance than ethical values?

Students’ answers may vary and all responses should be supported by reasoning. Criticisms of the

compliance approach may include that because it is based entirely on a punishment and reward

system, it may not encourage universities to go beyond the minimum requirements of compliance. On

the other hand, a values-based approach tends to set forth ethical standards that organizations can

3. How can student-athletes, coaches, and university administrators demonstrate a proactive response to

ethics and compliance?

Students’ answers will vary. Some answers may include having less of a focus on revenue generation

and more of a focus on the development of athletes as educated and ethical citizens. Instituting an

ADDITIONAL RESOURCES

Penn State’s failure in ethics:

http://business-ethics.com/2012/07/12/9945-penn-state-scandal-highlights-failures-in-leadership-

and-culture/

NCAA punishment of Penn State:

http://usatoday30.usatoday.com/sports/college/football/bigten/story/2012-07-23/ncaa-penn-state-p

unishment-sanctions/56427630/1

Ohio State sanctions:

http://www.washingtonpost.com/blogs/early-lead/post/report-ohio-states-ncaa-sanctions-include-

2012-postseason-ban-announcement-coming-at-3-pm-est/2011/12/20/gIQAugnR7O_blog.html

Videogame lawsuit against NCAA:

http://www.nbcnews.com/business/former-ncaa-athletes-win-video-game-lawsuit-against-ea-6C1

0809666

Wins from Joe Paterno period restored:

http://espn.go.com/college-football/story/_/id/12179571/joe-paterno-111-wins-were-vacated-resto

red

Cheating scandal at University of North Carolina Chapel Hill:

http://www.chicagotribune.com/news/opinion/editorials/ct-north-carolina-sports-scandal-edit-110

8-20141107-story.html

Sanctions on Ole Miss:

https://www.sbnation.com/college-football/2017/6/6/15742134/ole-miss-ncaa-allegations-hugh-fr

eeze