COPY
STANFORD UNIVERSITY
April 30, 1940

Dr. Forrest ©, Allen
University of Kansaz
Lewrence, Kansas

Dear "Doe":

This will acknowledge your letter of April 25. The recommendation of our Tournament
Committee with respect to the division of receipts from our NCAA tournament and the
disposition of the money which would go te the NCAA is still very clear in my mind,
The letter which Olsen sent to each of the district chairmen this season contained a
part of this recommendation.

Since receiving your letter I have taken occasion to discuss in detail this whole
~matter with Bill Owens and also to go over carefully the executive regulations of the
NCAA. I find that the regulations of our Committee are in conflict with the regula-
tions of the Executive Committee of the NCAA in these particulars: 1, Funds may not
be earmarked for any specifie sport. Boxing, in the past, has requested the same
arrangement as contained in our recommendation to the Executive Committee. 2. No sume
from the income of tournaments or meets may be allocated to the Olympic fund, except
as the Olympic Fund Committee with the approval of the Executive Committee may direct.
5. Funds may not be pro-rated to competing teams except for actual expenses. 4, All
funds are supposed to be deposited in the general fund of the NCAA without any restric-
tions or reservations placed on then.

In view of the above, I can see how the Executive Committee did oppose our recommend-
ation. It is my guess that our recommendation, unfortunately, has never been submitted
to the Executive Committee. This, of course, is a weakness on our part and leaves us
open for criticism. It was my impression that our Basketball Rules Committee was given
a full report by the Tournament Committee and that they approved the repert. However,

I have been unable to find any minutes substentiating this recollection.

Since we have sent out information to the schools in the NCAA, and particularly to
these which have competed in the tournaments, I feel that we will be placed in an em-
barrassing position if the NCAA Executive Committee does not permit us to keep faith
with these schools, in spite of our negligence. It would be my opinion that unless
the schools concerned would recognize our error and agree to abide by the regular
NCAA rules, we should make a disposition of our funds for this year in accordance with
the recommendations which were drawn up by our Tournament Committee, and that hereafter
the whole matter should be clmred through the NCAA Executive Committee.

Bill Owens, while pointoug out the NCAA regulations, maintains an open mind with res-
pect to the whole mtter and is eager to have represenkktives from the Basketball
Committee present their case at the next meeting of the Executive Committee. It seems
to me that this is a very fair procedure, and I suggest that it be carried through in
accordance with Bill Owens' recommendation.

You may recall that I was not in favor of the pro-rating of moneys to the compe ting
schools over and above their expenses, but that I agreed to the recommendation in view
of the fact that we were attempting to offset the influence of the Madison Square
Garden and the Liston tournaments. It was our feeling that when we had defeated these
two projects, then we could make other adjustments of our finances. I still hold this
opinion. ;