Scandal-hit USC tries to wipe slate



LOS ANGELES, CALIFORNIA // The University of Southern California (USC) will remove all recognition of former star Reggie Bush from its campus - including a copy of his Heisman Trophy. The school was slapped with severe penalties by the National Collegiate Athletic Association (NCAA) last month after reports that Bush, who now plays for the NFL's New Orleans Saints, had accepted money and other benefits from marketing agents while playing at USC. The scandal also implicated OJ Mayo, the basketball player who played a single season with USC and now plays for the NBA's Memphis Grizzlies.

In a letter addressed to "members of the USC Trojan family" Max Nikias, the school's president-elect, said "athletic jerseys and murals displayed in recognition of OJ Mayo and Reggie Bush" would be removed from campus venues. "The university will also return Mr Bush's 2005 Heisman Trophy to the Heisman Trophy Trust in August," the letter said. The Heisman Trophy is college football's highest individual honour. The Trojans were banned from participating in NCAA football's lucrative post-season for two years, and were stripped of their 2004 national championship among 12 wins from the 2004 and 2005 seasons.

Officials estimate the punishment will cost the university millions of dollars. College sports in the United States and the huge sums generated from broadcast rights and gate receipts have traditionally tested the ideals of amateur competition. A number of schools have fallen foul of the rule over the decades, including Dallas's Southern Methodist University, which was famously banned for an entire season in 1987 and lost dozens of scholarships for repeated payments abuses.

More recently, the NCAA spared the University of Alabama its most severe punishment - the "death penalty" - for a similar scandal involving payments to entice players in 2002. * Reuters

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Europe’s rearming plan
  • Suspend strict budget rules to allow member countries to step up defence spending
  • Create new "instrument" providing €150 billion of loans to member countries for defence investment
  • Use the existing EU budget to direct more funds towards defence-related investment
  • Engage the bloc's European Investment Bank to drop limits on lending to defence firms
  • Create a savings and investments union to help companies access capital
The years Ramadan fell in May

1987

1954

1921

1888

Remaining fixtures

Third-place-play-off: Portugal v Mexico, 4pm on Sunday

Final: Chile v Germany, 10pm on Sunday

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.”

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Favourite sport: soccer

Favourite team: Bayern Munich

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Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates 

 

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When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.

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Saracens 57
Wasps 33

Exeter Chiefs 36
Newcastle Falcons 5

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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia