Sugar Bowl violates tax laws

Ohio State University players celebrate after their team defeated the University of Arkansas during the NCAA BCS Allstate Sugar Bowl football game in New Orleans, Louisiana January, 4, 2011. REUTERS/Sean Gardner (UNITED STATES – Tags: SPORT FOOTBALL IMAGES OF THE DAY)

The mess in college football keeps piling up. Real Sports on HBO has a new expose on how the “nonprofit” college bowls spend money like drunken sailors entertaining conference and school officials. We’ll have more on that later.

In the meantime, one of the disclosures from Real Sports involved improper expenditures by the Sugar Bowl for campaign purposes, something that violates tax laws given their nonprofit status.

An HBO “Real Sports” investigation has prompted the Allstate Sugar Bowl to self-report tax law violations it committed by purchasing three $1,000 tickets to fundraisers for then-Gov. Kathleen Blanco in 2004 and 2006.

Under its non-profit charter, the bowl is not allowed to contribute to political campaigns, and such actions also are against bowl policy, according to a release from the bowl.

At the time of the fundraisers, the Sugar Bowl was receiving approximately $1 million annually from the state as a “cooperative endeavor” that helped fund team payouts. The arrangement, which predated Blanco’s term, was rescinded two years ago at the Sugar Bowl’s request.

The release also stated that the money has been refunded from Blanco and those funds have been donated to the National Football Foundation Scholar-Athlete fund.

Chief Executive Officer Paul Hoolahan and current bowl president Lance Alfrick declined to elaborate beyond the release, but immediate past president Dave Melius called the violation “an accident.”

“Obviously, nobody had any idea,” Melius said. “You have to understand we have an organization with about a $14 million budget, and we’re spending $14 million a year in about a zillion different ways on a lot of things we’re supporting. There are thousands of checks written, and one check goes out that didn’t go through the correct process.”

This is the same Sugar Bowl that lobbied to have 5 suspended Ohio State players be permitted to play in the 2011 Sugar Bowl.

It’s becoming clear that the “nonprofit” status of these bowls is a complete fraud. They don’t care about college kids – they simply care about money. It will be interesting to see where that $14 million is really going as we get more scrutiny of this corrupt bowl system.

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Explosive allegations rock Miami Hurricanes

The drumbeat of college football scandals just got louder with some serious allegations being leveled against the Miami Hurricanes football program. Yahoo! Sports broke the story and followed up with more analysis, and this thing could be pretty big.

In one sense, none of this is surprising. As we’ve said many times, college football players are squeezed by the current system and there are too many temptations for them to cash in on benefits when they don’t have their own spending money. We’ve seen it in the tattoo scandal at Ohio Sate and the potential suit scandal at Alabama. The NCAA needs to reform the rules.

This crap happens everywhere. The deciding factor is simply proof available to the NCAA. With Ohio State, they had an FBI sting that produced the memorabilia that was central to the scandal. So far in Alabama there are tons of photos produced by sites like SPORTSbyBROOKS. We’ll see where that goes.

Here in Miami things might be even worse, as a rogue booster named Nevin Shapiro is in prison. He’s pissed off and he seems determined to take down the Miami football program. Thus the problem – if he can provide proof, Miami is in huge trouble. Some of the allegations are pretty tough as he’s saying he also provided prostitutes to the players.

The NCAA needs to be careful here. If they go off on these programs with massive sanctions, you might end up with a revolt as other schools will realize that this is happening everywhere on some level. It will be interesting to see how it plays out. Meanwhile, the officials in Miami need to get on top of this asap.

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