Case Application #$3$

Flagrant Foul

Topic: Business ethics

$$The dark underbelly of college basketball.$64$ College basketball is big business for the NCAA $($National Collegiate Athletic Association$).$ The annual tournament to crown the national champion of college basketball$$the $$big dance$$is the major source of income for the NCAA. However, a scandal was unfolding that would tarnish the reputation of some elite college basketball programs and would end the coaching career of one of college basketball$$s most well$-$known coaches.

Money. Ethics. Compliance. Always a recipe for scandal?

A sweeping FBI investigation alleging fraud and bribery at NCAA powerhouse basketball programs encompassed coaches, agents, financial advisors, and athletic shoe company employees. Federal investigators in New York uncovered a thriving underground market for top high school basketball prospects. For example: A sports agent arranged for a $$100,000$ payout to the family of a top high school prospect if he would commit to a certain major university and sign with a certain apparel company once he turned pro$\mathrm{.}65$ And this was just one example. Several other allegations were cited by the federal investigators.

In the athletic apparel business, getting your shoes and apparel on professional athletes$$unarguably$,$ the most valuable $$breathing$$ billboards ever$$can pay off in a big way. The product choices of these pros can have an immediate and long$-$term influence over consumers$$ purchasing decisions. Just look a

Discussion Questions

$3-24$ What is your opinion of the view that coaches are responsible for the conduct of their assistant coaches and players?

$3-25$ How can university leaders create a culture of ethics and compliance in college athletics?

$3-26$ What conflicts might arise in attempting to eliminate unethical$/$illegal behavior when there$$s often $$big money$$ associated with successful college sports programs?

$3-27$ What do you think of the defendants$$ arguments that $$no one was hurt and no law was broken?$$ Do you agree? Disagree? Discuss.

$3-28$ In your assigned group, discuss the potential effects there would be for the various stakeholders in this situation? $($Hint: The young players, reputation of the university, and so forth. Maybe even students who aren$$t athletes and won$$t sign multi$-$million$-$dollar contracts?$)$