The BCS presidential oversight committee, which made the decision Wednesday, also attached several conditions as it let the Fiesta Bowl remain part of the system for deciding college football's national champion. The demands include strengthening the Fiesta Bowl's board and imposing greater supervision of bowl executives so the problems are not repeated, according to materials obtained by The Associated Press.
"The message is they had cleaned house and addressed their problems, but our group doesn't believe they went far enough," Bill Hancock, executive director of the BCS, said in a telephone interview with the AP. He added that the $1 million fine was meant to reflect the "serious nature of the matter."
The BCS called for the $1 million to be donated to charities serving Arizona youth.
In a statement, Fiesta Bowl Chairman Duane Woods said: "The Fiesta Bowl Board of Directors understands and accepts the sanctions imposed by the BCS. We think that these tough but fair measures are consistent with our commitment to reform the Fiesta Bowl's governance and rebuild trust. The fine is substantial, but we are pleased that the BCS has directed that the funds benefit the youth of Arizona."
The bowl shouldn't have much trouble coming up with the cash. In a filing with the IRS this year, the Fiesta Bowl listed more than $15 million in net assets.
A recent internal report by the Fiesta Bowl detailed about $45,000 in reimbursements to employees for political donations, an apparent violation of federal and state laws. It also revealed lavish and inappropriate spending, such as $33,000 for a Pebble Beach, Calif., birthday bash for then-CEO and President John Junker, $13,000 for the wedding and honeymoon of an aide, and a $1,200 strip club tab for Junker and two others. Junker has been fired.
The oversight committee Wednesday accepted recommendations made in a report by a BCS task force which was "deeply troubled" by the Fiesta Bowl's actions. Those actions, the task force said, strongly suggest "that the bowl's executive staff frequently acted with scant regard for ethics and proper conduct.
Further, it is the opinion of the task force that the bowl's board of directors over the years was negligent in its oversight responsibilities."