12/11/2011: Under the NCAA cartel, none of his players will get a dime. Fascinating, carefully researched story by Ted Sickinger in the Oregonian on how Mike Bellotti came to be collecting $490,000 a year in PERS, most of which will ultimately be paid by Oregon taxpayers:
The statutes governing PERS include a loose definition of what constitutes “salary”: “the remuneration paid an employee in cash out of the funds of a public employer in return for services to the employer.” For employees hired after 1995, federal tax rules have limited the final salary reportable to PERS — $245,000 in 2011. But that doesn’t apply to Tier One PERS members such as Bellotti.
What pumped up his base pay were contract provisions that gave him a $325,000 share of the university’s endorsement contract with Nike and Oregon Sport Network each year, as well as a piece of the Ducks season ticket sales.
Bellotti’s contract defined endorsement and network deals as “Opportunities to earn outside income.” But because the university handled them as a transfer of its own revenue, the endorsement money is included in his university pay, and his benefit calculation.
Where will this money come from? Oregon taxpayers. Another subsidy for athletics:
… At retirement, Bellotti’s post divorce account balance was only $300,000. The university made its own contributions over the 21 years he was employed. But combined, they won’t come close to covering the $5 million benefit reserve that PERS established to cover his payments. Moreover, that reserve may underestimate the costs, depending on the state’s investment returns and Bellotti’s longevity.
To make up the difference, PERS draws on benefit reserves of its state and local government rate pool, which includes institutions of higher education, community colleges, state agencies and cities. Over time, all members of the pool will pay for the benefits, giving them less money to hire teachers, cops or provide services.
No wonder the rest of the state hates us. So, has Executive Senior Associate Athletic Director for Finance and Administration Jamie Moffitt – soon to be UO’s Chief Financial Officer – been letting this rip-off continue for AD Rob Mullens and for Chip Kelly and the other coaches? Seems like the new federal rules may prohibit it. Or perhaps they’ve figured out a new scam. Go Ducks!