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NCAA Sets Rules for For-Profit Schools

The NCAA Executive Committee, the highest body in the NCAA, has decided what to do with for-profit institutions. They will be members of the NCAA, but not full members:

The subcommittee determined for-profit schools could participate as NCAA members if: any financial benefits were received through their conferences and not directly from the NCAA; and if they did not directly participate as individual institutions in the development of the rules that govern the Association, such as having staff members represent their schools on committees or cast votes at the NCAA Convention.

The new classification distinguishes for-profit schools from non-profits in the NCAA membership and allows them to qualify for all championships benefits — including the ability to host events — and remain bound by the same rules and policies that govern other NCAA members.

The Executive Committee is still not done with for-profit institutions though, including Division I’s sole for-profit member, Grand Canyon. The committee is considering some other classification or rules for publicly traded for-profit institutions, who conceivably might be further limited. The Executive Committee’s classification must be implemented through legislation in the three divisions.

The NCAA is almost certain to be sued over this action. For-profit institutions are unlikely to sit by idly while the NCAA says they cannot vote on legislation or be represented on committees. And if the NCAA further singles out publicly traded institutions like Grand Canyon, legal action from them will be even more likely.

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