COLUMBUS - Ohio State's Board of Trustees today approved the use of $8 million in royalties from Coca-Cola's 10-year contract with The Ohio State University that will be spent strategically on student programs and initiatives designed to improve the university's academic excellence, promote diversity and enhance the student experience.

Ohio State President William E. Kirwan said more than half the revenues of the contract will be directed toward student activities. Line items include a fund to be spent in consultation with student groups on speakers and events; funds to support diversity initiatives; additional monies to renovate Larkins Hall, the student recreation center; and endowments for student governments, Ohio State's study abroad program and implementation of proposals to improve Greek life.

"We're pleased to partner with Coke in developing programs that will directly benefit our students," Kirwan said. "With much of the money being placed in endowments, the funds will grow beyond their currently specified amounts and will help fund many student activities over time."

Edward J. Ray, executive vice president and provost, said the programs chosen are of great interest to the university's student population while also meeting strategic goals of improving diversity, academic excellence and the experience students have on campus.

"We want students to benefit from this agreement on all levels - as quickly as possible and for as long as possible," Ray said.

The university and Coke announced the more than $30 million agreement late last year. Retroactive to July 1, 1998, and running through June 2008, the contract makes Coke the official beverage provider for the Columbus campus. In return, Coca-Cola provides cash, services and programs that will be used in a wide range of academic and student activities.

While essentially all of the $30 million will fund student activities, Ray said the $8 million currently allocated is derived from the royalty fee Coke pays for its association with Ohio State. Another approximately $13 million will be derived from commissions on vending machines, which go to the university's general fund and auxiliary units. And Coke has promised in-kind contributions of $3.6 million to support speakers, internships and events.

In addition, Coke has a specific interest in providing funds for certain programs, such as Critical Difference for Women, which will receive $1.2 million over the life of the contract; the university's Scholarship Program, which will receive $500,000; the Honors Program, which will receive $300,000; and $50,000, which will go to the Ohio State Medical Center over the next 10 years. The remaining $4 million in the contract will be held in reserve to be distributed at a later date, consistent with university policy of effectively managing previously unbudgeted funds.

The royalty fees will be distributed as follows:

Office of Student Affairs - $5.4 million

· A $1.5 million endowment to be used by the student governments - $1 million to the Undergraduate Student Government, and $500,000 to be shared by the Council of Graduate Students (CGS) and the Inter-professional Council (IPC).

· $2 million for the Larkins Hall and Ohio Union renovation projects, which are heavily used by students.

· $100,000 for diversity initiatives.

· $500,000 for programs in support of the Greek Life Task Force proposals. Most of this money will be placed in an endowment.

· $450,000 for programs and events. $400,000 for student affairs assessment to conduct student-centered research directed toward improving programs and services.

· $200,000 to living-learning programs on campus.

· $100,000 for the Ohio State Parents' Association.

· $150,000 in an endowment for study abroad programs.

Office of Academic Affairs - $2.7 million

· $1 million in an endowment for academic programs in diversity.

· $1 million for instructional technology.

· $300,000 endowment for CGS and IPC academic-oriented activities.

· $400,000 in seed money for diversity initiatives.

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(LO)