April 25, 1940

We are still paying bills and settling up loose ends of accounts in connection
with the Kansas City townement, and I have been so crowded for time that I have
bem unable to write you sooner.

A couple of weeks ago I sent Ole a check for $5,000, and while he was here I gave
him a check for $250. So that makes a total of $5,250 to Olsen. My idea was that wé
Should give the N.C.A.A. perhaps $7,500. You will recall, Johnny, that Ole told you
that this money could be earmarked for basketball. When President Bill Owens came to
Kansas City, together with Mr. May of Washington, we were told that this money could
not be earmarked for basketball. Ole said, “Well, that is news to me."

You remember right after the Olympics the N.CeA.A. committee had an agreement with
the A.A.U. wherein they agreed that if the A.A.U. would permit them to have the
college coaches for track and field, crew, swimming and wrestling, the A.A.U. would
have the coaches of the other sports. That means that they sold basketball dom the
river just after we got in the Olympic Games, and of course this was done to benefit
the N.C.A.A. in these four above-mentioned sports. Now, when basketball comes along
and makes some money, and plenty of it, the officers state that this money carmot be
earmarked for basketball. |

_ President Owens let it be know that the N.C.A.A. expected to take all the profit
anc thet it was rather an unusual request to think that the colleges would get any
of the money. I stood up and battled it up one side and down the other. Naturally
Ole in his position, could not do much. Edmmdson, St. Clair, Olsen, May, Owens
and I were in the conference. Of course, I drew some fire.

Now we are in a bad spot because the N.C.A.A. wants all of the money. President
Owens especially said that we have Ned Irish whipped, and I sdd, "You just think
you have got him whipped, because most of the college coaches in the country would
resent the N.C.A.A. taking the money and letting the boys and the athletic assoc-
iations of the schools interested play for expenses alone.” ‘hen we agreed that the
H.C.Ask. got 20% of these tourmaments we were just giving the N.C.A.A. something to
start on. in my mind, the competing teams should certainly get a part of it.

Confidentially, I told President Owens that I would go to Madison Square Garden
where we could get the most money. And that is exactly why I am going to the Garden.
I wanted you to know about this, and I would like for you to write me in confidence
what your reactions are. ; ;

T thought that in the eastern divisiun play-off they should take their money and
cut it four ways for the four competing teams, and in our western play-off we should
divide the profits four ways among the competing teams, after deducting a sizeable sum
for the N.C.A.A, end then for the final play-off we could still have a larger cut for
the two competing teams, with the N.C.A.A. getting their cut. What Ole proposed was
to take the ten teams, the fou eastern and the four western, and the two finalists,
and give the N.C.A.A. quite a sum and then cut the remainder ten ways. Frankly, I