The NCAA ripped USC for a lack of institutional control, condemning the star treatment afforded to Reggie Bush, seen here with the ball, and OJ Mayo.
The NCAA ripped USC for a lack of institutional control, condemning the star treatment afforded to Reggie Bush, seen here with the ball, and OJ Mayo.
The NCAA ripped USC for a lack of institutional control, condemning the star treatment afforded to Reggie Bush, seen here with the ball, and OJ Mayo.
The NCAA ripped USC for a lack of institutional control, condemning the star treatment afforded to Reggie Bush, seen here with the ball, and OJ Mayo.

Southern Cal outraged by stiff penalties


  • English
  • Arabic

LOS ANGELES // Southern California was no ordinary college football programme over the past decade. The Trojans won seven consecutive Pac-10 titles and two national championships while annually fielding a gleaming array of NFL prospects. That is just one reason the Trojans received no ordinary penalties when the NCAA announced on Thursday the results of their four-year investigation.

The NCAA threw the book at storied USC, imposing a two-year bowl ban, four years' probation and significant scholarship losses that likely will damage the programme's foundations. The Trojans also must vacate 12 wins from the 2005 season, all stemming from improper benefits given to Reggie Bush, the Heisman Trophy winner, by fledgling sports marketers dating back to the 2004 national championship.

The NCAA ripped USC for a lack of institutional control, condemning the star treatment afforded to Bush and OJ Mayo, the former basketball player, who spent just one year with the Trojans before bolting to the NBA and leaving the men's programme in shambles. "The real issue here is if you have high-profile players that your enforcement staff has to monitor ... it is extremely likely that the people who are receiving these interactions outside the institution are going to receive a bigger reward," said Paul Dee, the chairman of the NCAA's committee on infractions. "So higher-profile players require higher-profile monitoring."

With pointed language, the NCAA said in their report that USC's oversight of their top athletes ran contrary to the fundamental principles of amateur sports. In a particular slap to the Hollywood-friendly Trojans college football team, the NCAA banned most non-essential people from attending practice or standing on the sidelines during games, a favourite pastime of Will Ferrell, the actor, and other wealthy alumni.

"Elite athletes in high-profile sports with obvious great future earnings potential may see themselves as something apart from other student-athletes and the general student population," the NCAA report said. "Institutions need to assure that their treatment on campus does not feed into such a perception." The coaches who presided over the alleged misdeeds - football's Pete Carroll and basketball's Tim Floyd - left USC in the past year.

USC reacted with uniform outrage to the harshness of the sanctions, promising an appeal. "I'm absolutely shocked and disappointed in the findings of the NCAA," Carroll said in a video statement produced by the NFL's Seattle Seahawks, who hired him in January. "I never thought it would come to this." The penalties include the loss of 30 college football scholarships over three years and vacating 14 wins in which Bush played from December 2004 through the 2005 season. USC beat Oklahoma in the BCS title game on January 4, 2005, and won 12 games in Bush's 2005 season that ended with a loss to Texas in the 2006 BCS title game.

Bill Hancock, the executive director of the BCS, said a committee will meet to consider vacating USC's 2004 championship. While no action would go into effect until USC's appeals are heard by the NCAA, Hancock said there would be no 2004 champion if USC's victory is vacated. "I take the same stance as our university," new college football coach Lane Kiffin said. "There is some guilt, but the punishment is too severe. That's why the appeal process is taking place."

* AP

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Business Insights
  • As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses. 
  • SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income. 
  • Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

Elvis
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Baz%20Luhrmann%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Austin%20Butler%2C%20Tom%20Hanks%2C%20Olivia%20DeJonge%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A