SEMO TO PAY $56,625 AS RESULT OF NCAA EARNING SETTLEMENT

NCAA Division I athletic programs all over the country will be taken a major hit in the pocketbook -- and that includes Southeast Missouri State University.

Tuesday's announcement that the NCAA would pay more than $54.5 million to settle its dispute with former restricted-earnings coaches means that every one of the nation's more than 300 Division I schools will take a share of the hit.

According to Southeast athletic director Don Kaverman, Southeast's share of the payment will amount to $56,625. The nine other Ohio Valley Conference schools will have to pay the same amount to provide the league's assessment of more than $566,000.

"It's certainly a chunk for a school our size," said Kaverman, who noted that many of the nation's major athletic powers will have to pay much more, some nearly $200,000.

Kaverman said just how Southeast will make the payment will be determined at a later time. He also said he doesn't envision the payment seriously hampering the financial state of the Southeast athletic department, although it certainly doesn't help.

"There are several ways we can pay it and as a conference that's going to be discussed at our June meetings," Kaverman said. "It could come through revenues we receive from the conference (that the conference receives from the NCAA) or through institutional funds. We have a number of options. It will be interesting to see what other conference members want to do.

"We hope to be able to generate new revenues in the community and that's part of my responsibility. But obviously it will have some impact because we hoped to do that (generate new revenues in the community) anyway."

Kaverman said the payment is due by Aug. 25. Each school has an option of paying the amount over a period of a few years, but any amount still due at the end of August will begin accruing interest as of Sept. 1.

The huge payment stems from the fact the NCAA was found in violation of antitrust laws for capping the salaries of restricted-earnings coaches.

Division I schools voted almost unanimously in 1991 to create an entry-level coaching position in all sports but football where people could be paid no more than $16,000 per year. Several coaches later filed suit, which became a class-action representing more than 2,000 men and women.

The NCAA fought the suit through the courts for more than three years, losing at every turn.

Kaverman said the original intent of creating the restricted-earnings positions -- Southeast had several such coaches in various sports -- was solid but the NCAA apparently didn't cover all its bases.

"It was to create entry-level opportunities for coaches that previously didn't exist," he said. "The intent wasn't to limit earning opportunity, particularly at smaller programs, but in some instances it did. Some coaches were already employed at a higher salary and that had to be reduced to comply with this. That's what created the lawsuit."

Kaverman said Division I schools were aware for some time that they would eventually have to make the payments. It was just a matter of how much they would have to pay.

"We knew once the judgment was in and was upheld on appeal, it was just a matter of how much we would have to pay," said Kaverman. "It actually was higher at one point, well over $100 million. Overall, I think most Division I athletic directors are about as satisfied as they can be because it could have been much worse. It could have been 100 million. Instead, it's half of that."