October 24-25, 1980
BOARD OF REGENTS
UNIVERSITY OF NEVADA SYSTEM
October 24, 1980
The Board of Regents met in special session on the above date in
the William Carlson Education building, University of Nevada, Las
Members present: Mr. Robert A. Cashell, Chairman
Mr. James L. Buchanan, II
Mrs. Lilly Fong
Mr. Chris Karamanos
Mrs. Molly Knudtsen
Dr. Louis E. Lombardi
Mr. John R. Mc Bride
Mrs. June F. Whitley
Members absent: Mr. John Tom Ross
Others present: Chancellor Donald H. Baepler
President Joseph N. Crowley, UNR
President Judith Eaton, CCCC
President Leonard Goodall, UNLV
Vice Chancellor Larry Lessly
Secretary Bonnie M. Smotony
The meeting was called to order by Chairman Cashell at 10:05 A.M.
Chairman Cashell requested consideration of the following
1. Investment Recommendation from Valley Bank
Mr. Monte Miller reported that the University holds 2400
shares of Boeing stock. He recommended this stock be sold,
noting that it is presently selling at 34-3/4, adding that
this will result in a loss of approximately $4,700, but the
stock is weak and is expected to continue to go down.
Dr. Lombardi moved approval. Motion seconded by Mrs. Fong,
carried without dissent.
2. Intercollegiate Athletics
Mr. Cashell stated that the purpose of the meeting was to
discuss Intercollegiate Athletics at the two Universities,
specifically the area of institutional control of these
Mr. Mc Bride stated that he wished to read a prepared state-
ment which would include a motion.
Mr. Buchanan objected, suggesting that such a statement
might go into other items not on the agenda and thereby lead
to a violation of the Open Meeting Law, and possible lead
into a personnel session as to the professional competence
of an individual. He requested that the statement be sub-
mitted to the Chair for review before its introduction.
At the request of Chairman Cashell, the statement was re-
viewed by Counsel. Upon Counsel's assurance that the state-
ment would not violate the Open Meeting Law and did not con-
tain any reference that would more appropriately be handled
in a personnel session, Mr. Mc Bride read the following
Approximately one year ago, I was one of two Regents
interviewed by several WAC Presidents and the previous
WAC Commissioner, Stan Bates, regarding the UNLV appli-
cation for admission to that conference. One of the
questions asked of me was: Did UNLV and the Regents
have institutional control over Intercollegiate
Athletics? In response to that question, I indicated
that since I had been in office for less than a year, I
could not speak for the past. I did, however, state
that in my judgment, with the recent appointments of Dr.
Goodall as President, and Dr. Negratti as Athletic
Director, we would have institutional control. I fur-
ther stated that as a Regent, I would have it no other
way, and if I believed that not to be the case, I would
so advise the WAC and NCAA. Individual Boosters or a
Booster organization cannot be allowed to run, directly
or indirectly, the Athletic Program of any honorable in-
stitution. Lest anyone take comments out of context,
let me make it clear that Boosters are not only welcome
to support our Athletic Programs but are absolutely nec-
essary for appropriate financial support, particularly
in view of the pressures faced due to inflation, lack of
adequate State support, and Federal Title IX require-
ments. They cannot, however, be allowed to "run the
I am concerned and distressed that it was necessary for
this Board to meet in special session today to discuss
this subject, but in my judgment, it is absolutely es-
sential that this subject be aired publicly by this
Board. As I see it, the issue is not the resignation of
Negratti, but the far more serious question of institu-
tional control over Intercollegiate Athletics. I am
also convinced that this session would not have been
necessary if a couple of Regents had not brought up the
question of reporting relationships of the UNLV Athletic
Fund Raising Office at the end of the August 29th Board
meeting. I had to leave the meeting early that day (but
not until after the last action item on the agenda), so
I was not aware of the discussion until I received my
copy of the minutes. I subsequently asked for a tran-
script of that discussion, which I have with me. It is
obvious to me from reading that transcript that Dr.
Goodall was misled into believing that the Associate
Director of Athletics reported directly to the UNLV
President and that, furthermore, this was Board policy.
An investigation shows nothing further from the truth.
I challenge any Board member to find such a policy in
any Board meeting minutes or the Board's policy manual.
No single Regent or group of Regents can set Board pol-
icy; a majority of the Board must do that. Furthermore,
the Fund Raiser for Athletics carried the title of
Associate Athletic Director, not Associate UNLV Presi-
dent; his performance ratings were given by Bill Ireland
during the administrations of Baepler and Dixon and by
Negratti since Dr. Goodall's appointment. In addition,
all of his leave and travel requests are approved by the
The argument that Athletic Fund Raising activities im-
pinges on other donors and therefore it is a function of
the President's Office is facetious to say the least.
What about the donors for the Concert Series or the
Theatre Series? These activities are not run by the
President's Office, and yet you will find many of the
same donors in all three functions.
By misleading Dr. Goodall, this Board will have to take
the responsibility for the flap over Dr. Negratti's
resignation. Furthermore, certain irresponsible com-
ments made to the Press implied that the Board was un-
happy with Dr. Negratti, which is a total falsehood. I
know for a fact that a majority of this Board supported
and still supports Dr. Negratti and believes he has done
an excellent job in a difficult situation. However,
there still remains in the Athletic Department a very
small group who like to "free-wheel" it -- this still
disturbs me. However, I want to make it clear that I
have the highest regard and admiration for the many out-
standing men and women in that Department and hope that
some day they will prevail.
Before closing my remarks, I would like to recall some
of the events of the last week for the information of
the Regents. Late Thursday afternoon, a week ago, Dr.
Goodall called me and asked if I could meet with him and
Dr. Negratti at breakfast the next day (Friday). He in-
dicated that Dr. Negratti wanted to submit his resigna-
tion, and knowing that I was a friend of Al's, asked if
I would join him in "talking Al out of it". We met for
more than two hours Friday morning and, as you know, we
were unsuccessful. I felt then, and feel now, that the
impasse resulted from a communications problem or mis-
understanding and not a lack of institutional control.
Both Dr. Goodall and I tried to convey the fact that the
Fund Raising issue would be resolved to his satisfaction
at the next Board meeting. Dr. Goodall has already di-
rected the Fund Raising Office to supply all of the re-
quested information, and I am sure the Board will en-
dorse the two Presidents' actions on reporting lines of
the Athletic Fund Raisers today. I wish Friday the 17th
had not happened, for I still believe Dr. Negratti has
been a breath of fresh air to our University System. He
has done a tremendous job in a short period of time.
I am not going to try to talk Al into withdrawing his
resignation, for I have tried that and I respect his
decision. At the end of our discussion period, I intend
to submit a motion to the Board as an action item.
This motion will propose that the Board:
(1) Totally subscribe to the principle of institutional
control over Intercollegiate Athletics, and that
the Presidents of UNLV and UNR see that such a
mandate is carried out.
(2) Reaffirm its total support of both Dr. Goodall and
Dr. Negratti in their actions to restore confidence
and integrity and credibility to the Athletic
(3) Concur in the recommendations of Presidents Crowley
and Goodall in their organizational assignment of
Athletic Fund Raising responsibilities within their
(4) Authorize and direct Kafoury, Armstrong and Company
to conduct an audit of Athletic Fund Raising activ-
ities on both Campuses with particular emphasis on
ticket and cash equivalence accountability.
I would now like to ask the Chairman if he would recog-
nize Dr. Goodall for comment and his recommendation
regarding Athletic Fund Raising activities.
Thank you, Mr. Chairman.
Following his statement, Mr. Mc Bride noted that a recom-
mendation had also been placed before the Regents in which
the UNLV Alumni Association had asked for an audit such
as he was recommending (filed with permanent minutes).
President Goodall stated that before he made a recommenda-
tion on the matter under discussion, he wished to comment on
Mr. Mc Bride's statement concerning their meeting with Dr.
Negratti and their unsuccessful effort to persuade him to
reconsider his decision to resign. President Goodall agreed
that it would not be productive to pursue that with Dr.
Negratti, stating that he respected his decision, and ac-
cepted his decision to resign. He expressed appreciation to
Dr. Negratti for his willingness to continue during the
transition period required for recruiting a new Director,
and added the following statement for the record:
That search (for a new Director) will begin very quick-
ly. Concerning the transition, let me say just a word
to those of you who may fear, or even those who may
hope, that UNLV is going to have a renegade Athletics
Program, or that UNLV is going to give up the progress
of the past year, or that UNLV is going to allow this
program to be influence or overrun by outside forces.
If you have those thoughts, then may you hear this loud
and clear. UNLV is going to have an Athletics Program
that this University and this community will be proud
of. We are going to have institutional control of
Athletics. We are going to use that institution con-
trol to have a program, which I have said many times
in the past, will be: (1) consistent with the aca-
demic goals of this University; (2) consistent with
the budget limitations we place upon it; and (3) con-
sistent with the rules and policies of the NCAA, the
conference and of this University. Those are my
personal commitments, and I can assure you those are
commitments that are shared by the Faculty Senate,
through the expression of the Executive Committee,
by the Intercollegiate Athletics Council, and I am
confident by every member of this Board of Regents.
That is where we are, that's the base upon which we are
going to build, and that is the point upon which we are
going to go forward, under Dr. Negratti's leadership
through the transition, and under his successor.
President Goodall then read the following statement and
recommendation for the record:
From the time I arrived in July, 1979 until the time of
the August, 1980 Regents meeting, the Athletics Fund
Raising Office was a part of the Athletic Department and
reported to the Athletic Director. This was true under
Dr. Ireland and then under Dr. Negratti. During the
past months, Dr. Negratti performed all the normal su-
pervisory duties for that Office, and even changed Dr.
Pearson's title, making him Associate Director rather
than Assistant Director. I was unaware of there being
any problem on this subject until the time of the August
At the August meeting I was asked whether the Athletics
Fund Raising Office reported to me and I said it did
not; rather, it reported to the Athletic Director, as
the title implied. The Regents asked me to review this
subject and bring back a recommendation. They also
asked that the Office report to me in the interim, based
on what was said to be past Regents policy.
Some have thought I could have settled the whole matter
with a simple phone call or memorandum. In fact, I
could not; once the Regents asked that I return with a
recommendation, I assumed I could not take further
definitive action until the matter had come back for
the Board's review of my recommendation.
As you are aware, I was in the midst of a Campus-wide
administrative study at that time. The Board had fund-
ed similar studies at UNR and UNLV and ours was proceed-
ing. I told my staff members, including Dr. Negratti,
that I intended first to provide the Board with a copy
of the study for information, and then, after you had
time to read it and comment, I would return with spe-
cific recommendations. The report was in your October
agenda for your information. Because of the short time
between the October and November meetings, it was my
intention to return with specific recommendations at
the time of the December meeting rather than the Novem-
It has been suggested that I may have wanted to delay
this decision so that it could be made after the WAC
matter was resolved. That does not make sense because
the December Regents meeting is early in the month, but
the WAC meeting is not until the Friday before Christ-
I still believe it would be most appropriate to address
the entire subject of administrative structure as a
whole, but because of the recent attention given to this
matter, I am prepared to make a recommendation now.
I recommend that the Athletics Fund Raising Office be
located where I had placed it prior to the August Re-
gents meeting, in the Athletic Department. The Head
of that Office should report to the Athletic Director.
This is the administrative organization found on most
Campuses with which I am familiar. This recommendation
has the unanimous support of the Intercollegiate Ath-
letics Council. I recommend approval.
In the discussion following, Dr. Wayne Pearson commented on
the history of the Athletic Fund Raising efforts at UNLV,
noting that the function was initiated in 1970, and he join-
ed the staff in 1971. Currently, there are three people
working in the Office -- himself, Mr. Dave Pearl and a sec-
retary. Dr. Pearson stated that his salary and that of the
secretary are paid from University funds; that Mr. Pearl's
salary is provided partly from the University and partly
from the Rebels Club for his service as Executive Director
of that organization. He also pointed out that all solici-
tations for the Athletic Program are made by himself and his
staff, and all checks for scholarships are made payable to
the Board of Regents and deposited to University accounts.
Dr. Pearson reported that this year's pledges to date amount
to $1,253,800, of that total, $1,026,168 has been collected.
Mrs. Fong asked about the funds collected by the Rebels Club
for events such as the Frank Sinatra Concert, noting that
solicitation letters request that such checks be made pay-
able to the Rebels Club. Dr. Pearson explained that the
stationery and postage costs for such solicitations are
borne by the Rebels Club, and although his office is doing
the work for this affair, just as it does for several
such Rebels Club sponsored affairs each year, funds are
collected by the Club.
In response to a question from Mrs. Fong as to the percent-
age of Mr. Pearl's salary paid by the University compared
with that paid by the Rebels Club, Dr. Pearson estimated
that the University pays about 2/3 of his salary. In re-
sponse to a subsequent question from Mrs. Fong concerning
the availability of a financial statement for the Rebels
Club, Dr. Pearson stated that any donor to the Rebels Club
could see the financial statement by visiting the office of
George Fox. Mrs. Fong suggested that such records should be
more readily accessible, adding that if Mr. Pearl receives
the greater portion of his salary from the University, the
books should be available for Regents who wish to examine
Dr. Pearson pointed out that the Rebels Club is not an
official arm of the University and cannot be, under NCAA
rules, explaining that in order to be an official arm of
the University, a Boosters Club must be a bonafide alumni
organization, whereas the Rebels Club has only about five
percent of its total members who are alumni of UNLV.
Mr. Buchanan suggested that since, as Dr. Pearson points
out, the Rebels Club is a separate organization, the Board
of Regents does not have any authority to request access to
the Club's records. He pointed out that money which is con-
tributed for scholarships comes to the University and is
accounted for, thereby providing the necessary institutional
control. He objected to the criticism of the Athletic Fund
Raising operation, suggesting that Dr. Pearson and Mr. Pearl
and the Boosters ought to be congratulated on building that
function into such a successful operation.
Mrs. Fong stated that her remarks were not intended as crit-
icism; rather she believed that as publicly elected Offi-
cials, the Board of Regents should be accountable to the
taxpayers for the way in which the institution is run. Mr.
Buchanan agreed, and suggested that is indeed the case.
However, he pointed out that the Rebels Club works for the
benefit of the University and has never interfered with the
internal affairs of the University, and what they do with
the money they raise or how they get it is their concern.
The only appropriate control the Regents should exercise is
over the money that comes to the institution for scholar-
Mr. Mc Bride commented that he did not regard the discussion
as criticism of the Fund Raising operation or of the Rebels
Club, pointing out that the concern stems from the inability
of the University to demonstrate that it is fully in control
of the Athletic Program.
Mr. Buchanan objected to UNLV being "put on the block",
suggesting that if the Board wished to talk about control,
then perhaps it ought to look at UNR, pointing out that all
of the money collected for scholarships for UNR is collected
by the Boosters and the University therefore has no institu-
tional control at that institution.
President Crowley pointed out that this procedure is being
changed to require that scholarship contributions for Ath-
letics are made payable to the Board of Regents, in the
same manner as that described for UNLV.
Mr. Cashell stated that it was not intended to focus nega-
tive attention on UNLV, rather to provide an opportunity for
a full airing of the concerns. He agreed that the Rebels
Club, Dr. Pearson and Mr. Pearl worked very hard and suc-
cessfully for the UNLV Athletic Program, as do their coun-
terparts at UNR, and their efforts are greatly appreciated
by the two institutions and by the Board. He added that he
also personally appreciated very much the fact that neither
of the two Boosters organizations had called him to request
the special meeting be cancelled, although he had received
calls from several individuals who had objected to the
Mr. Mc Bride requested that his motion stated earlier also
include the recommendation from the Joint Intercollegiate
Athletics Committee that all scholarship sales be handled
through the two Universities with all checks made payable to
the Board of Regents. He noted that this procedure is now
followed by UNLV, and as noted by President Crowley, is be-
ing put into effect for UNR beginning in January, 1981. Mr.
Mc Bride also noted that his motion included concurrence
with the recommendations of Presidents Crowley and Goodall
in their organizational assignments of the Athletic Fund
Raising responsibilities, and that would accommodate Presi-
dent Goodall's recommendation presented earlier.
Motion seconded by Mrs. Fong.
Mr. Buchanan commented on Mr. Mc Bride's motion, objecting
to the suggestion for commendation of Dr. Goodall and Dr.
Negratti, stating that he did not believe this was in order
since Dr. Goodall and Dr. Negratti were merely doing the job
they are employed to do. He also objected to the proposed
audit, pointing out that Kafoury, Armstrong and Company had
just completed an audit of ticket and cash handling. Mr.
Buchanan further objected to the recommendation by President
Goodall concerning the administrative structure, suggesting
that it was inappropriate to change the policy concerning
reporting lines at this point.
Mr. Cashell pointed out that there has never been a Board
policy placing the Athletic Fund Raisers in a direct report-
ing line to the President. Mr. Buchanan disagreed, recall-
ing that this was discussed by the Board in August at which
time it was reaffirmed that the Fund Raising function did
indeed report to the President, that it had reported to Dr.
Baepler when he was President, and to the President previous
to him. Mr. Buchanan stated that as far as he was concerned
that policy had not been changed.
Dr. Baepler recalled that when he was President of UNLV,
Fund Raising was totally coordinated through the President's
Office; however, he agreed that it was not a Regents policy.
Mr. Buchanan moved to amend the motion before the Board to
require that until such time as a new Athletic Director is
appointed and assumes his duties, the President's Office
shall be responsible for all Fund Raising activities at
UNLV. Motion was not seconded.
At Mr. Buchanan's request, the motion was restated for clar-
ification, as follows:
That the Board:
(1) totally subscribe to the principle of institutional
control of Intercollegiate Athletics and that the
Presidents of UNLV and UNR see that such a mandate
is carried out;
(2) reaffirm its total support of both Dr. Goodall and
Dr. Negratti and their actions to restore confi-
dence, integrity and credibility to the Athletic
(3) concur in the recommendations of Presidents Crowley
and Goodall in their organizational assignment of
Athletic Fund Raising responsibilities within their
(4) authorize and direct Kafoury, Armstrong to conduct
an audit of Athletic Fund Raising activities on
both Campuses with particular emphasis on ticket
and cash equivalency accountability;
(5) concur in President Goodall's recommendation that
the Athletic Fund Raising Office be located where
he had placed it prior to the August meeting -- in
the UNLV Athletic Department; and
(6) direct that all scholarships sales be handled
through the two Universities with all checks made
payable to the Board of Regents, with this to
become effective at UNR in January, 1981.
Mr. Buchanan requested that each of the points in the motion
be voted on separately. Mr. Mc Bride declined to amend his
motion, requesting that it be voted on as a single motion.
Motion then carried unanimously by roll call vote.
Mrs. Fong reported that she had a received a letter from
Harry and Peggy Polk, in support of Dr. Negratti, and asked
that the letter be noted in the minutes.
Mr. William Morris, Secretary/Treasurer of the University
Rebels Club, commented on the relationship of the Club to
the University, referring briefly to Mrs. Fong's comments
about the Club's financial statement. He pointed out that
mailing copies of the financial statement to all 1700 mem-
bers of the Club would be very costly. He noted that, as an
alternative, the Club makes financial reports at its meet-
ings for the information of the members.
Mr. Morris also commented on the efforts of the Rebels Club
to provide money for the University's Athletic Department,
in addition to the scholarships for Athletics, whenever pos-
sible and wherever there is insufficient money available
from other sources, citing as an example $150,000 which the
Club borrowed to provide funds for the Marching Band, and
$15,000 that was given to the Department to buy sports a-
wards for the past two years. Mr. Morris noted that these
funds are raised through the various activities sponsored
by the Rebels Club, such as the Frank Sinatra Concert, the
Jogathon, and exhibition games. Mr. Morris also suggested
that when the Intercollegiate Athletics Program is funded
sufficiently, there may be no need for such an active
In commenting further, Mr. Morris recalled that in a recent
investigation by the NCAA, the Rebels Club had provided
photostats of all checks for the past five years, with
explanations as to what each one was for, and as a result
the NCAA had commended the Rebels Club for the way in which
their records were kept. Insofar as an audit of the Club's
records are concerned, Mr. Morris estimated that it would
cost $40,000 to go back over the past 13 years to bring an
President Goodall expressed appreciation to the Rebels Club,
for the kind of support it is giving to the UNLV Athletic
Program, suggesting that he did not believe any quality
program could remain strong without such support and added
that he looked forward to its continuance.
Dr. Negratti reaffirmed the statement by Mr. Morris that the
Rebels Club, and Mr. Morris in particular, have always been
available for help when asked, but have never pressured the
University or the Athletic Department in any way.
The meeting adjourned at 11:35 A.M.
Bonnie M. Smotony
Secretary of the Board