UO charges Kelly 0% interest, forgives fine and legal costs

8/26/2013: A correspondent notes that if UO faculty leave early (i.e. take a sabbatical and then don’t come back) we also have to repay a year’s salary. Link here. Of course we don’t get 3.5 years to do it, and we have to repay the cost of our benefits too. 

8/24/2013: Ken Goe has the story in the Oregonian:

When Kelly jumped to the Philadelphia Eagles last winter he was contractually obligated to pay a $3.5 million buyout to the school. 

But Kelly has until June of 2016 to pay up, and is being charged no interest. 

According to documents released by the school in response to a public records request by UO economics professor William Harbaugh, Kelly is paying $85,365.85 every month until the summer of 2016. 

A couple things jump out. The $3.5 million figure is hard to get your hands around. When it’s cut into 41 monthly, $85,000 chunks it becomes easier to understand just how staggeringly well the former UO coach was being paid. According to a survey published in the Chronicle of Higher Education, the average salary for a full professor at the University of Oregon for the 2012-13 academic year was $110,900. [Actually Kelly was paid about $300K a month, his total buyout is about 1 year of salary.] 

Now, imagine how sweet it is for Kelly that he isn’t required to pay any interest during his three-and-half year payment schedule. 

The U.S. Department of Education parent loans I took out for my daughter’s four years at Oregon total less than one of Kelly’s monthly repayments. I pay a healthy interest rate. I’ll be paying it for a long time. …

Rates on loans to students average 5.6%. And if students cannot pay, UO or the lender turns the debts over to bill collectors. But UO Associate Athletic Director for finance Eric Roedl has made no effort at all to recover the $20K NCAA fine UO had to pay for Kelly’s infractions:

And of course not only did UO pay all the $200k+ legal costs of the Willie Lyles infractions, Randy Geller actually made the academic side pay most of them – another free-ride for the jocks. Speaking of which, I wonder how much of Kelly’s monthly $85K repayments go to the academic budget?

Who pays Glazier, and Duck Beach Sand Volleyball developments

8/21/2013 update: After telling the faculty on the IAC we had to keep her presentation about Sand Volleyball secret, AAD Lisa Peterson has now blabbed all about it to Andrew Greif in the Oregonian. Interesting double standard.


8/12/2013 IAC meeting update: The meeting took place as scheduled and lasted for about 40 min.

I said I’d talked to a few reporters about the rumors, and asked if the meeting was secret. AAD Lisa Peterson said it was her understanding that her presentation would be confidential. I asked why Beach Volleyball plans should be a secret. Ms Peterson said that she was not prepared to proceed unless the meeting was confidential.
The committee discussed this, and the consensus was that it was best to agree to confidentiality and maybe learn something and perhaps even have a chance to be consulted. So I agreed to keep the details of the meeting confidential, and I told Ms Peterson that I would explain this to reporters.

When I started taking notes on my laptop, she asked if I was blogging about the meeting. I reiterated that I had promised to keep the details of the meeting secret. She said she was just checking up on me to make sure. 

In terms of the substance of the meeting, I assume it’s public knowledge that any decision to add NCAA Sand Volleyball and be playing by spring needs to be submitted to the NCAA by Oct 1, that the USC Sand Volleyball facility cost $5 million, and that Nike sells beach volleyball gear.

Sorry, wish I could say more – but it’s a secret! 


8/10/2013 update: Word is that Rob Mullens is sending AAD Lisa Peterson to “consult” with the IAC about the possibility that UO might add a beach volleyball team. Monday at 3:30, second floor of the Jock Box. This is a sham, Rob Mullens made this decision long ago. The location is presumably to make it easier to keep out reporters and students wondering where their money is going, since they aren’t allowed up the stairs. Last time they held the IAC meeting in the student union and then the IAC, led by Andy Karduna, voted to kick out the student reporters – big mistake.

Here’s a pdf from the volleyball association on the current status of the sport. While Kilkenny’s competitive cheerleading dream seems to have failed to make it with the NCAA as a sport, “Sand Volleyball” has. That means it helps UO’s Rob Mullens boost his ranking in the NCAA Director’s Cup competition, for which he gets a fat bonus:

One of many bonuses in his ~$650K a year contract. Plus car, of course.

Meanwhile I finally got the BANNER reports on who paid Glazier. These take 5 minutes to run, but Hubin’s public records office managed to stall releasing them for months. Full dump here. The upshot? Jamie Moffitt had been charging half the cost to the academic side:

but Berdahl started making the jocks start paying the full cost in Feb 2012:

Gottfredson still hasn’t made a substantive response to the May 2013 Senate resolution on ending the millions in Jock Box and Matt Court subsidies, but he did cut back on the secret overhead subsidy Frohnmayer had given out. From what I can tell he didn’t backslide on the Glazier costs either, though it’s a bit hard to figure out – I’ve put the question to AAD Eric Roedl for clarification.


7/23/2013: Unverified rumor down at the UO faculty club beach cabana is that UO is going to add this, the latest NCAA women’s sport. They call it “Sand Volleyball”, video here. I’m on the Senate Intercollegiate Athletics Committee, which Rob Mullens is supposed to consult before adding new sports. This is the first I’ve heard. Maybe it’ll be the tit-for-tat for an end to the jock box and Mac Court bond subsidies? Or Kilkenny just got bored with watching baseball and competitive cheerleading?

Meanwhile, if you’re curious about how much of the bill for Mike Glazier’s fees on the Kelly/Lyles investigation UO’s academic side had to pay, it took15 days just to get an estimate from UO Public Records, and it ain’t cheap:

The University of Oregon has received your public records request for “(Existing) documentation revealing all sources of the funds used to compensate the law firm retained by the University of Oregon in connection with the recently completed NCAA investigation of the school’s football program; andWith reference to the preceding request, existing documentation which identifies all persons who participated in the decision that University of Oregon would incur such expense (involve counsel in the first instance and be “represented” within the investigation)” on 07/08/2013, attached. The office has at least some documents responsive to your request.  By this email, the office is providing you with an estimate to respond to your requests.

The office estimates the actual cost of responding to your request to be $523.98. 

Secret slide update on Senate IAC expels student-journalists from meeting

6/6/2013 update: AAD for finance Eric Roedl’s secret athletic slides, with redactions, here. Oregon Commentator Nick Ekblad got them via a public records request, after the IAC voted to kick him out of their meeting on budgets and athletic subsidies. More below. Why in the world would the blacked out part be exempt from disclosure? No reason, most of the redacted numbers were simple 4% growth projections with a few blips to pay off their operating debt to the Foundation, and Kilkenny’s PK park balloon loan. Net income is always zero, because the AD spends any surplus on increasing their own salaries. Roedl’s just went from $170K to $190K.




5/28/2013: From UO student-journalist Nick Ekblad, of The Oregon Commentator:

Last Wednesday, the UO Senate’s Intercollegiate Athletics Committee (IAC) held a meeting at which AAD for Finance Eric Roedl was scheduled to give the IAC information about the athletic department’s budget and some projections about the next 6 years.
The UO Senate voted last week to require the Athletic Department to start paying back some of its subsidies, like that of the Matthew Knight Arena property, so this meeting had attracted myself from the Oregon Commentator, and two Daily Emerald reporters.
Right away there was tension in the air. This was the last IAC meeting of the school year and the AD still hadn’t released minutes from the previous meeting. Glen Waddell was met with an awkward silence when he asked about the delay in preparing the minutes.

“I’ve been really busy and haven’t gotten around to it,” the stenographer said.

Bill Harbaugh then asked IAC co-chair Andy Karduna if he had followed up on the request to the AD for the syllabus for the College of Education FHS 110 class that the athletics department requires all new players to take.
Karduna replied that he hadn’t, and had no plans to ever do so.
I had been under the impression that the IAC meeting was open to the public, as it was – until AAD Roedl realized that the media was present. And so began the discussion of whether or not to allow the media to stay during the presentation of revenue projections.
Some members of the IAC referred to the projections as “confidential… sensitive information”. When asked why projections would be “sensitive information”, those believing it to be sensitive did not want to discuss specifics because the reporters were still in the room.
Maybe the UO has patents pending on “long-term strategy and business plan” and Roedl doesn’t want competing universities to know the secret. I pointed out that “the information shouldn’t be sensitive as long as they are presented as ‘projections’ and not ‘promises’.”
Harbaugh backed me up, asking, “without going into specifics, why would projections be sensitive?”
“We’re dealing with projected ticket sales. This is sensitive information that should be kept confidential,” Roedl said.
Harbaugh then pointed out that that all five appointed student representatives were missing from the meeting, and argued that we student-reporters had a right to attend the meeting as we are indeed students and could tell the rest of the students where their money is going. Glen Waddell backed him up.
But the rest of the IAC was hostile. Someone was concerned that, with the media present, “the Athletic Department is not going to speak honestly.” That is a direct quote. After a moment, she corrected herself, saying, “I mean they might not speak fully”. Craig Pintens, the AD director of communication, kept his head low, buried in his iPad throughout the entire discussion.
There was then a debate regarding whether or not the meeting was technically public. Apparently this came up last year as well, the result being the IAC deciding that it was not a governing body and not subject to Public Meetings Law.
Harbaugh made a motion to allow the media to stay for the entirety of the meeting anyway, and Glen Waddell seconded it. However, most of the members of the committee present either voted “No” or abstained, keeping their heads down in shame. Members present included Karduna (Human Phys), Rob Illig (Law), David Koranda (Journalism), Donna Laue (English), Kurt Krueger (Printing), Dev Sinha (Math), and Jim O’Fallon (Law).
The Daily Emerald reporters and I begrudgingly left the meeting, but we were invited back at the very end. There were only a few slides left of the presentation and I learned that the Athletics Department’s total expenditure last year was $93.9 million. 34% of that went into Operations, 35% into Salaries and Benefits, 20% into Debt and 11% into Scholarships – athletic scholarships.
Student money has essentially been stolen but the majority of the IAC doesn’t think that students should be informed of specifics. In addition to the Matt Knight subsidization having been forced on ordinary students, $2 million of students’ money is spent per year in the Jaqua Center on personal tutors for student-athletes. 
Because the IAC kicked out student-reporters, it is obvious that the Athletic Department is afraid that students will not be blindly faithful to their Ducks, knowing that we pay to have their grades raised to a passing level.
 – Nick Ekblad

UO Matters:

Having been present for most of the financial presentation, I can say that I didn’t hear anything remotely confidential from Mr. Roedl. If The President’s Council of Economic Advisors can make their revenue and spending projections public why can’t the Ducks? The Daily Emerald has now filed a public records request for Roedl’s powerpoint, so I guess we’ll know after a few months of the usual delays – unless Dave Hubin charges another exorbitant fee.

OUS gives up on monitoring Duck finances – will Gottfredson?

Last fall the OUS board published this breakdown of Duck athletic finances:

SUMMARY
The UO Athletics working capital as of June 30, 2011 was a negative $2.6 million, a decrease of $1.1 million from the prior year. The UO Athletics ended FY2011 with negative working capital and is not in compliance with the Board’s directives relating to deficits. The UO Athletics continues to operate without any direct institutional support.

That was a bold claim about institutional support, often made in the past by Rob Mullens and Jamie Moffitt, but more recently disavowed by UO after news stories about the $2 million Jock Box tutoring subsidy, overhead rate manipulations, Mac Court rents, and so on. And now we learn the academic side is giving them large interest free loans for working capital – while Knight’s legacy fund sits at the foundation, earning interest for the jocks to funnel to higher coach salaries or their new golf course.

Is new Pres Mike Gottfredson going to make the athletic department come clean this year? They’ve already postponed the discussion of finances with the Senate IAC. So I asked the Duck’s new AAD for Finances, Eric Roedl, for a copy of the new OUS report:

From: Eric Roedl
Subject: RE: athletic dept cash balances Date: October 26, 2012 4:18:20 PM PDT
 

[UO Matters],

Per our business affairs/controller’s office, the OUS is not compiling this report anymore beginning with FY12.

Thanks, Eric

How convenient. Go Ducks! 10/27/2012.

Smoke and mirrors

is not the same thing as transparency. New Greg Bolt story on athletic department budgeting, in the RG today, here. Story on Matt Court costs and wildly exaggerated revenue here. In defense of Jamie Moffitt, she did finally post a good chunk of financial info, here, but only after a lot of pressure from the Senate IAC and just before leaving the AD to become UO CFO.

But the administration is still in denial about the Jock Box costs, the secret Frohnmayer / Kilkenny deal to freeze athletics department overhead rates and use student money to pay for the skybox tickets for administrators, etc. For some reason that MOU is still not on the AD’s financial website. (Actually, it now is, under “debt service on purchase of land …”) I eventually got it with a public records request, as explained in this Steve Duin story in the Oregonian. I posted the memo here.) And given how much digging it took to discover these sorts of subsidies, any reasonable person would wonder what else is still being hidden. Maybe the new AAD for finance, Eric Roedl, will open the books, admit they are in the hole, and start himself off with a nice clean slate?

For the historically minded, here’s the key page from the 2004 report by Terry Moore and Econorthwest on Arena feasibility. Frohnmayer hid this from UO and the Senate Budget Committee arena task force for 4 years, because the numbers were too realistic, and therefore made it impossible for UO to sell tax-exempt bonds to finance the thing. My recollection is that it was the SBC and documents like this that forced Knight to establish the legacy fund to get OUS approval for the arena. (Bad memory. See the comments for the real tax arbitrage story. SBC report here, thanks). And without that we’d be $15 million in the hole, each year.

It took three months and two petitions to the DOJ to make Frohnmayer release this and give it to the SBC. He had UO spend thousands of dollars at the DOJ, trying to stall the release, as this Oregonian story explains.

In the end, it was a remarkably accurate forecast. So you can be damn sure UO will find a more pliable economic consultant and will try very hard to keep the Senate out of the loop, when they start trying to sell us on the Autzen expansion plans!

2/26/2012.