Wednesday, September 17, 2003
Copyright © Las Vegas Review-Journal

Tournament's future in doubt

Troubled event was expected to have only 16 teams take part

Financial losses and questionable bookkeeping practices are contributing to an uncertain future for the Holiday Prep Classic basketball tournament.

Deputy Superintendent of Instruction Agustin Orci said a decision has not yet been made on whether to hold a 2003 tournament. The 26-year Clark County School District event draws national participation each December.

Earlier this year, the event lost Powerade as title sponsor and was expected to have only 16 teams take part, down dramatically from the 96 teams that played in 2002.

However, a school district audit of the tournament has found the event was operating in the red long before that occurred. The findings contradict records kept by former district Athletic Director Larry McKay, which showed financial losses only for the 2002 event.

"The whole thing is still under consideration," Orci said. "We don't know what we're going to do."

The Review-Journal has been a co-sponsor of the tournament, which is supposed to be self-sustaining.

A financial review found McKay was using money from the district's athletic budget to pay for game officials and tournament security. Orci said that is not an acceptable practice. Tournament costs should have been paid by tournament funds.

Over the past three years, $131,052.56 was drawn from the district's athletic budget to pay personnel working the tournaments.

McKay, who retired in June, told auditors the expenditures for police and officials were proper because the district organizes the tournament. He pointed out that the district sponsors athletic tournaments in sports such as wrestling and volleyball. In the past, officials and security for those events were paid for by the district as well.

"The practice was consistent with any tournament run by the school district," McKay said. "It's a district event."

Irregular tournament operations also have drawn the notice of the National Federation of State High School Associations, which regulates interscholastic activities such as athletics. On June 9, the Indiana-based organization sent McKay a letter informing him that the Prep Classic was out of compliance with federation sanctioning rules and regulations, which require all teams to be treated equally.

"We have learned that local Las Vegas teams were charged an additional $100 for the entry fee, and the host schools had their entry fees returned to them, as well as profiting from the concession proceeds and donated athletic shoes from Adidas," Federation Sanctioning Officer B. Elliot Hopkins wrote in a letter sent to McKay on June 9. "This is NOT equal treatment for the schools that participated and has possibly jeopardized the athletic eligibility and amateur status of the involved student-athletes."

According the tournament records, 13 teams that took part in the Prep Classic in 2002 did not pay any entry fees and one out-of-town team paid $100 more than the stated entry fee of $600.

McKay responded in a letter dated June 12, explaining that he charged local teams an extra $100 because they weren't paying the travel and room costs that out-of-state teams were incurring.

He also said host schools did not have their entry fees waived. They were given a rental fee donation for the use of their gyms from the tournament that included the profit from their work selling concessions.

"My interpretation of the rule was not correct," McKay said.

When contacted last week, Hopkins said he considers the matter concluded. The district has been informed of the violation and because it has committed to not repeating it, no other measures need to be taken.

"We've given Clark County the opportunity to resolve the issue, and they have done that," Hopkins said. "The matter is closed."

FINANCIAL LOSSES OF THE HOLIDAY PREP CLASSIC TOURNAMENT

A Clark County School District audit of an annual basketball tournament that draws national participation found the event has lost money for three consecutive years. The tournament is supposed to be self-sustaining. The losses were made up by the athletic department, which is a part of the district's taxpayer-funded operating budget.

	2002	2001	2000
Tournament receipts	$179,601.20	$194,131.21	$181,869.77
Tournament disbursements	247,695.28	182,438.65	156,524.56
Tournament net proceeds	-68,094.08	11,692.56	25,345.21
School district costs	56,899.56	39,631.00	34,522.00
Tournament net loss	-124,993.64	-27,938.44	-9,176.79

SOURCE: Clark County School District