An executive of sports-betting company DraftKings Inc. was appointed as a new trustee at UNC-Chapel Hill on Thursday, despite concerns from some UNC System Board of Governors members.
Malcolm Turner is the head of strategy and corporate development for DraftKings, one of the world’s leading online fantasy sports companies that also allows fans to bet on NCAA college sports.
“I question whether that is the most appropriate relationship to have with the UNC Board of Trustees or any university with a sports program,” Art Pope said at the governance committee meeting Wednesday about the university trustee appointments.
“The fact of the matter is that DraftKings is promoting sports betting on college sports, and I just do not think that’s appropriate,” Pope said, noting that he has no problems with the company itself.
Pope spoke to the full board Thursday to again plead his case in opposition of Turner’s appointment.
He said Turner has excellent qualifications and this is not a judgment of his ethics, but he’s concerned that Turner is in the business of promoting and operating online college sports gambling.
Pope added that it’s symbolic that the first legal sports bet in North Carolina was for UNC-Chapel Hill to beat Wisconsin in the NCAA men’s basketball tournament.
“It’s in the best interest … to keep an absolute arms lengths distance between online gambling in college sports and our college sports.”
The board voted in favor of appointing Turner, but it was not unanimous.
Six board members — Pope, Leo Daughtry, Steve Long, Anna Nelson, Doyle Parrish and Dwight Stone — voted against his appointment.
A qualified, but questionable candidate
Board of Governors member Steve Long also expressed concern at both meetings, particularly because this is a new issue with North Carolina recently being allowed to legalize professional and amateur sports gambling through a 2018 Supreme Court case. Sports betting is legal in North Carolina only at tribal casinos, and state lawmakers have filed a bill that would authorize sports gambling on professional, college, electronic and amateur sports.
Long said his hesitancy has nothing to do with the “outstanding” candidate. Long said he doesn’t think an executive from a sports betting operation should be on the Board of Trustees, simply because of the apparent conflict of interest, he said.
“The reality is that these Boards of Trustees do get involved with college athletics,” Long said, citing approval of coaches contracts and the UNC-CH academic and athletic scandal.
A the meeting Thursday, board members also noted the negative perception of this choice that will follow.
Lou Bissette, a non-voting member of the board, supported Pope’s objections at Thursday’s meeting.
“Given UNC-Chapel Hill’s position as an icon of their collegiate sports … the perception of this is not going to be good,” Bissette said.
Stone also said Turner’s selection will be controversial.
“I think it’s going to cause a lot of press and pain not only for the university but for this group.”
There are going to be many instances where Turner will have to recuse himself from decisions regarding athletics, Stone added.
At both meetings, several board members, including Pearl Burris-Floyd, Mark Holton, Philip Byers, Jim Holmes and Marty Kotis strongly supported Turner’s appointment and touted his academic and professional background.
Turner graduated from UNC-CH and earned joint JD and MBA degrees from Harvard University. Turner was a Rhodes Scholar finalist, Morehead-Cain Scholar, and recipient of the Ernest L. Mackie Chancellor’s Award for character, scholarship and leadership at UNC-CH.
Before DraftKings, Turner was vice chancellor and athletics director at Vanderbilt University, president of the NBA G League, managing director at the Wasserman Media Group and senior vice president at OnSport, a North Carolina–based sports and entertainment consulting firm.
Potential conflict of interest
Board members submit Statements of Economic Interest with the State Ethics Commission. Pope noted that it found there’s no actual conflict of interest, but a potential conflict of interest related to DraftKings.
Board Chair Randy Ramsey said he received those letters from the State Ethics Commission on each member of the BOG and Board of Trustees. He said it’s very seldom that he does not see the “potential conflict,” with only two out of at least 100 this year not having that distinction.
Ramsey recognized the concerns, but said university trustees are segregated from athletics decisions, which are made by the chancellor. He said he interviewed Turner and further expressed his support.
“I could not be more impressed by the gentleman and his integrity, and I think he will be a fine member,” Ramsey said.
Board member David Powers, a lobbyist for DraftKings, acknowledged Turner works for one of his clients, but said he does not know him personally and did not nominate him for this position.
Powers is the chair of the governance committee, which approves the trustee appointments. He left the meeting for the discussion and vote of the UNC-Chapel Hill and East Carolina University trustee appointments.
“With an abundance of caution for any perceived conflict of interest,” Powers recused himself and said he will do the same for the full board vote Thursday.
University trustees and athletics
Pope acknowledged that there is separation between trustees and athletics program and that members can recuse themselves. But he said right now college sports is facing great changes. He cited ongoing litigation about the rights of college players to control their own likeness images and questions about compensation restrictions.
Pope said there are issues that the trustees may be dealing with affecting college sports. He also mentioned the UNC-CH academic and athletic scandal that involved the Board of Trustees through legal issues and costs of consultants and the investigation.
“Unfortunately, Chapel Hill has a history with this,” Pope said.
Board member Mark Holton said he doesn’t think Turner’s job in an arguably controversial industry should overshadow his experience and qualifications.
Holton said people in other states are betting on UNC games today and that everything he reads suggests that trend will continue to grow. He sees Turner’s job at DraftKings as a potential benefit to the board as he has “front line view of what’s changing in the world.”
Board members briefly discussed each of the trustee appointments at several UNC System universities, recognizing their qualifications at the meeting Wednesday. The full board will voted and approved the full list of appointments for each school at its meeting Thursday.
This story was originally published April 21, 2021 2:27 PM.
