Athletics uses more of strongest force in sports: dollars and sense
1976-1982 Percentage Analysis
Student Aid 27%
Rich Ramirez
Assistant Managing Editor
There is a force in collegiate athletics that is more powerful than Ralph Sampson, Herschel Walker and Marcus Allen. The force can’t block a shot or score a touchdown, but athletic administrators nationwide are devising game plans to minimize its impact.
The almighty dollar has made its presence felt throughout the 1980s in the Pacific-10 Conference. Budget jugglers at the University of Oregon have dropped men's baseball and gymnastics, and women’s golf and soccer: the University of California at Berkeley has dropped golf, and Washington State has also dumped gymnastics.
This university cut men’s gymnastics in 1981 and was planning to cut water polo this year until Coach John Williams’ efforts helped ensure the sport’s existence through 1984.
“We’re going to maintain as many sports as we can within our financial restraints.” said Virgil Lubberden, associate director of athletics in charge of Business Affairs. “All of our coaches are out beating the bushes.”
By “beating the bushes” the coaches are having to drum up financial support for their teams, in addition to their trad-
This is the first in a series of articles focusing on financial problems
itional coaching duties.
Lubberden stressed that “USC has done a better job than other schools in managing its athletic funds.
“It’s done the best job humanly possible. We watch our costs and cut comers.”
Among the department's soaring costs is the higher price of scholarships given to student-athletes.
To meet the 13.8 percent tuition increase for 1982-83, the Athletic Department will
spend $2.7 million on student-athletes’ aid — one-fourth of close to a $9 million budget.
The $2.7 million will come from fund-raising clubs and football revenue.
Scholarship Club donations account for $500,000 of the tuition bill: Cardinal and Gold and Trojan Club contributions account for another $1.5 million, Lubberden said.
He said that the remainder of the grant-in-aid will come from football income. Football showed a $3 million net profit in 1981-82.
The department’s strategy for nullifying increased expenses in other areas includes higher fund-raising club dues, increasing ticket prices, and taking advantage of loopholes in the NCAA’s rulebook regarding television coverage.
“Income has increased, but costs have gone up far greater,”
(Continued on page 3)
Salaries
25%
0091 \\ 20% 26%
19801981
36%
Supplies
13%
1981 1982
(Projected)
Same 1980 81 income 10% salary increase 10% tuition ocrease
Third year 20% ^crease indirect overhead
trojan
Volume XCI Number 59
University of Southern California
Thursday April 15, 1982
Hartnack: USC=corporation
Trustee chairman offers views
By Casey Wian
Managing Editor
During the Depression, an eager high school graduate named Carl Hartnack was offered a four-year, fully paid scholarship to this university. But he had to turn it down so he could get a job to help support his family.
Perhaps this disappointment is what drove Hartnack to donate his time and energy to the university over the years. Eventually, in July of 1980, he was elected chairman of the university’s Board of Trustees.
“I’ve always regretted not having the college experience,” said Hartnack, who is also chairman of the Board of Directors for Security Pacific National Bank. “At the same time, I’ve always had an interest in USC.”
Hartnack played football at Belmont High in Los Angeles before beginning his climb up the corporate ladder at Security Pacific. “I just did it by, you might say, the practicality of working. I advanced through the corporation, did a great deal of reading. I did go to the American Institute of Banking, so I got exposed and educated in a very specialized way,” he said.
Reclining in a chair in his office located on the 54th floor of a downtown office building, Hartnack minced few words as he talked about his life and the university’s current financial situation.
In 1973, Hartnack was named chief operating officer of Security Pacific. Five years later he was named chairman of the board.
He has belonged to numerous civic organizations in the San Diego and Los Angeles areas. In 1972, Richard Nixon selected him as the Los An-
geles-area chairman of the National Alliance of Businessmen’s JOBS program, which was responsible for finding jobs for the unemployed. Gerald Ford named him national chairman for the 1975-76 term.
Hartnack served on the university’s School of Business Administration board of counsi-lors, and was named to the university’s Board of Trustees in 1975. He served as chairman of the committee that selected James H. Zumberge as president.
In his spare time, Hartnack enjoys golf, fresh-water fishing, gardening, collecting guns and target shooting.
Recently, members of the university community ’ ave voiced complaints over the lack of communication between the trustees and the community. Some have proposed student representation on the Board of Trustees as one way of solving this problem.
Hartnack disagrees. “I don’t think it serves any purpose at all, a student being on the
Board of Trustees. If you had every constituency represented on the Board of Trustees, you would never get anything done. It would be a confused mess, because it would become political. There are adequate communication means between the students and the administration.
“I really think, unfortunately, that the students don’t understand the normal procedures of corporate life that are not dissimilair to (those) in running the university.”
There is an “almost identical organizational structure” at the university and Security Pacific National Bank, said Hartnack, who uses this similarity to explain why he believes the university should be run in the same way as a corporation.
“If you take a bank, the customers don't interface with the board of directors, they interface with the line management and the chief executive officer. It’s the same at the university. The university is run by the president — he's the chief ex-(Continued on page 5)
Ex-ambassador urges new Nicaragua policy
By Marc Igler
Staff Writer
While steering clear of any harsh criticism of the Reagan administration’s foreign policy toward Central America, the former American ambassador to Nicaragua said Wednesday that it could take quite some time before tensions are eased in the politically volatile region.
Lawrence Pezzullo is credited with facilitating the 1979 power transition between the outgoing Somoza dynasty and the incoming Sandinista regime in Nicaragua.
The former ambassador said that an enlightened political figure who has greater sensitivity for the region as a whole must emerge in Central America before the United States wiil compromise on certain issues.
“You’ve got to be lucky with these things. People have to come along who have the ability to see answers rather than becoming part of the problem,” the 57-year-old Pezzullo told an audience of about 60 people in the Von KleinSmid Center lounge.
"You need statesmanship in a word. People have to start understanding that their relationship with their neighbors are a hell of a lot more important than their relationship with the United States or Cuba,” he said.
Because he is still employed by the U.S. diplomatic service,
(Continued on page 5)
CARL HARTNACK
LAWRENCE PEZZULLO
staff photo by Jon Soo Hoo