PAC-12 boss jock gets $3M to "drive the academic mission"

5/19/2013: You can’t make this shit up. Rachel Bachman has the story in the WSJ on PAC-12 commissioner Larry Scott’s earnings:

Scott took home a $1,376,000 bonus in addition to a base salary of $1,575,000 and other compensation of $71,462. … Scott said that owning its networks helps the Pac-12 “drive the academic mission in terms of promoting a broad array of Olympic sports, promoting campus content and promoting the brands of our universities in ways that would not be possible in my view if someone else is controlling your network.”

The players still get paid nothing, UO’s students are still paying millions in hidden subsidies, and the whole thing is subsidized by billions – well, at least a few billions – of state and federal tax-deductions. Here’s the illustrated version of the sorry state of public finance in our country:



And then there’s the UO Foundation, which does the money laundering for the Ducks – all to support UO’s tax deductible academic mission, of course. These are donations for current operations. CEO Paul Weinhold won’t release the breakdown for capital gifts and endowments.

UO Foundation jock fest continues

4/09/2013: The UO Foundation is spending about $200K on a lobbyist, Ginny Lang, with the job of convincing the legislature to keep UO faculty off the new UO Board. Where else do your tax deductible contributions to the UO Foundation go? Mostly to sports. More and more so every year:

Data from the Council for Aid to Education. The UO Foundation’s latest report to them is here. This is just the data on gifts for current expenditures. CEO Paul Weinhold refuses to report the endowment gifts broken out by athletics/academics. Must be worried about his tax-exempt status. He’s also dragging out his required report to the IRS on expenditures. Their books closed on July 1 2012. Their IRS 990, which provides some bare-bones financial transparency, was due Nov 15. They asked for an extension –  it ran out on Feb 15. They asked for another, so maybe we’ll see some numbers May 15, 2013.

UO Foundation and Gottfredson power grab

“UO Foundation resists compromise to include faculty on proposed independent governing boards”From Saul Hubbard in the RG. They’re using money donated to UO to pay Ginny Lang, the lobbyist who is meeting with legislators to fight against faculty participation. Meanwhile President Gottfredson won’t sign the UO constitution that Rob Kyr and the Senate negotiated with Lariviere, he won’t agree to put it in the faculty union contract, and he’s fighting transparency and public records access tooth and nail. I’m sure it’s going down well with the sports boosters at the foundation, who will soon pack the UO Board of Trustees. Last year the UO Foundation spent $2.2M on need-based scholarships, $8.7M on athletic scholarships, and who knows how much on lobbyists. 4/8/2013.

Updated: UO Foundation cuts back

on academic support. Not on glossy colors for their 2011-12 report, quietly released on Friday. And the foundation’s own internal expenses have grown 20% in two years, from $5,463 in 2009-2010 to $6,646. 9/29/2012.

9/30/2012 Update: The Foundation has stopped putting the time-series data in the reports, presumably since it doesn’t look that great. I’ve added it at the bottom of this post, followed by Jamie Moffitt’s 2010 attempt to explain the weird “student athletic scholarship” numbers. Essentially, the UO Foundation was laundering DAF donations, reporting they were being spent on “scholarships” when they really went to pay for things that would more accurately be described as team expenses. The foundation has a policy that donations must be related to UO’s core academic mission, but you know how that goes. To her credit, Moffitt seems to have put an end to that practice. after I raised these questions.

I’d ask for a more detailed breakdown on expenditures between athletics and academics, but $338,000 CEO Paul Weinhold doesn’t believe professors should ask questions about how the foundation spends the tax-deductible contributions that are supposedly given to support our academic mission. While OSU completes the part of the standard Council for Aid to Education questionnaire that shows athletic spending, Paul Weinhold flat out refuses to release the data:

But he thinks we should support an independent UO board?

$300,00 per year CIO Jay Namyet did manage to beat the market this year, 2% versus 0.5%. Overall he’s below benchmarks for the past 3 and 5 years though. I doubt those calculations even include the $1 million or so it costs to run their investment shop, which can’t even beat the FTSE index.

I’m no accounting professor, but if anyone wants to dig into these let me know what else you find.

2010-2011 2011-2012

Email trail:
Sent: Friday, July 16, 2010 11:17 AM

I was looking at the amounts the UO Foundation reports disbursing to athletics for scholarships, and comparing that to the amounts that the AD reports spending on scholarships. (From BANNER, via Nathan’s online Financial Transparency Tool.) They are quite different, as you can see from the attached spreadsheet.
Can you tell me the reason for the difference?
Thanks, [UO Matters]

On Jul 16, 2010, at 11:30 , Jamie Moffitt wrote:
I am out of the office today, but would be happy to look into your question when I return on Monday.  At first glance the BANNER scholarship figures look consistent to me with other  figures I have seen.  The Foundation figures look higher than I would have expected – I will need to do some research to figure out why this is the case.  I will let you know what I learn.
Jamie 

On Jul 19, 2010, at 19:15 , Jamie Moffitt wrote:
I’ve done a bit of research on your scholarship question and I’ve learned that the difference between the Foundation figures and the BANNER figures is due to a difference in accounting classification.  The student aid figures that you pulled from BANNER represent tuition remissions, as well as student aid for books and room and board.  The Foundation classification for student aid includes a broader range of direct student support including things like medical expenses, insurance, and nutrition support.  As the Foundation and the University are two separate institutions, their accounting classification structures are different.
Jamie
From: “Jamie Moffitt”
Date: July 21, 2010 9:53:26 PM EDT
I was just about to send you a note.  Here it is:
There are a broad range of BANNER account codes that are used for different types of student support.  For example, meals for athletes are recorded under account code 20300, medical support (GTF trainers) are recorded under account code 24999, life skills support (speakers for student trainings) would show up under account code 24599, nutritional support (student staffing) shows up under account code 10501, etc.  These are just a few examples.  I believe that most, if not all, of the difference between the foundation and BANNER numbers that you sent me for FY2009 (BANNER: $7,442,824; Foundation:  $9,462,000) are the result of the difference between BANNER and Foundation’s accounting classification structures.  There can also, however, be timing differences that attribute to differences between the two institution’s figures.  The Foundation records expenses when it transfers funds to the University.  The University records expenses when the funds are spent.  While the majority of the time these two activities occur in the same fiscal year – this is not always the case.
Jamie

Weinhold and Namyet’s pay and expenses go up, scholarships go down

6/8/2012: Diane Dietz of the RG has the story here:

The foundation plowed $14.5 million into student aid, scholarships, loans and student wages in the fiscal year that ended June 30, 2011, according to its annual filings with the Internal Revenue Service. Spending in that category was down for a fourth straight year — and down 24 percent from 2007 — because contributions dwindled.

… The foundation reported $715 million in total assets, 49 employees and a payroll of $3.9 million. Weinhold’s total compensation last year was $338,310, including base pay of $274,494 and retirement and other benefits of $63,726. Chief Investment Officer Jay Namyet got $300,744 in total compensation.

My guess is that Weinhold’s scholarship number includes the $9 million or so for athletic scholarships from Duck Athletic Fund ticket payments. They delayed releasing this IRS data for 6 months, and the next solid info will be in September. From an earlier UO Matters post:

2/15/2012: The Council for Aid to Education announced the results of its authoritative Voluntary Support of Education survey today. Chronicle story here.  On average, giving to higher ed is up 8.2%. Giving to the UO Foundation is down from $121 million for the 2009-10 FY to $93 million for 2010-11 FY. (Official total using PV). These amounts include deferred gifts, unrealized bequests, and so on. Not sure how things like the Jock Box get counted.

I’m still parsing the data, but this jumps out: UO Foundation CEO Paul Weinhold and compliance officer Erika Funk have once again refused to complete the section of the survey giving details on donations to athletics. The RHS column shows what a group of our comparator universities report on average. Those Beavers at Oregon State have nothing to hide, but UO does:

I wrote in October about how the Foundation cut contributions to academic scholarships by $1.6 million last year, while increasing their own administrative spending $2 million. And here is the data we do have on where donation money is going. No real growth for academics, more and more goes to athletics:

Data source here. And the academic side has to pay the tab for the skybox seats for these people.

10/22/2011:

The UO Foundation’s job is managing funds from UO donors, investing the UO endowment, and disbursing the funds to UO for scholarships, etc. They’ve just released their 31 page annual report, here. I’m no accounting professor, but people have earned tenure showing the correlation between glossy pictures in annual reports and efforts to hide bad financial news. This report is not an exception.

Last year they actually went to Attorney General Kroger and procured a special opinion exempting them from Oregon’s public records law. Here’s the letter from their lawyer, Frederick Batson, requesting the ruling.

You can get some spending info from the required IRS 990 reports – but not until their “compliance officer”, Erika Funk, runs out every possible extension delaying the release of the info. She sure earns her salary – it will be May of 2012 before we learn what Foundation executives took home in 2010. Still, this year’s official report does have a few bits of actual data, hidden among the glossy photos:

You read these things from the back. Start at page 30:

That’s right. They cut scholarship funding by $1.4 million, while they increased spending on Foundation Administration – that’s themselves – by $2.0 million. I’m guessing Weinhold’s take was $350,000 or so plus expenses, and another $250,000+ for Namyet.

So what did we get out of this crack team of executives? The foundation’s recent investment returns are well below what they’d get by just putting the endowment in the Russell 3,000 etc:

We are paying Jay Namyet to guess on the market, and he’s just not that lucky a guy. Of course he’ll still get a fat paycheck – but too bad for our scholarship students.

The Tuition is Too Damn High

The ODE has the story, with video:

Most of the staff and administrators had cleared out prior to students entering except for President Berdahl himself and a few of his staff. Berdahl spoke with students on why tuition increases needed to be implemented as well as other issues surrounding state funding. Berdahl was successful at easing student frustration by agreeing to a meeting. Berdahl said he would meet with a group of 12-15 students Thursday as long as “it doesn’t turn into a shouting match,” he said.

… “An institutional board that cares about this institution and is committed to this institution and works with the administration, will inspire the confidence of donors about the commitment to excellence this institution has,” Berdahl said. “If we can build our endowment so that there is a lot more financial aid available, and a central part of any capital campaign we have going forward is to raise scholarships.”

I’d have a lot more confidence in the idea of an independent board if the UO Foundation, the closest current equivalent, had a better track record on scholarships and transparency. BTW, The Faculty Pay is Too Damn Low. 6/6/2012.

UO Foundation executive pay

5/15/2012: The IRS makes non-profits submit “990” forms annually, to show what public good they’ve been doing with that money they are not paying taxes on. The OSU Foundation turned in theirs 6 months ago. CEO J. Michael Goodwin pulled down $414,792 in total compensation. The top 5 employees take was $1,436,454. All 5 are safely in the 1% – and to think they did it working for a charity.  Impressive!

Where’s the equivalent UO info? Well, the UO Foundation hasn’t filed yet – they’ve now gone through two 3 month extensions from the IRS. The IRS rules for a 990 extension are considerably more lenient than most professor’s: “Additional time is needed to gather the information necessary …” But now time’s up. The IRS wants that 990 today, May 15.

So, can CEO Paul Weinhold and the rest of the UOF execs top OSU? I’ll post the form as soon as they send it along. Honestly, the OSU salaries are going to be tough to beat. But this summer the UOF annual report showed they were cutting their payments to academic scholarships by $1.4 million, while increasing administrative expenditures by $2 million. So my money is as good as yours on this one. (In fairness to Mr. Goodwin, the OSU Foundation CEO directs both fundraising and investing/money managing. At UO the VP for Development job is separate and part of UO, not the foundation.)

Update: Here’s the UO F 990 form, which they sent over promptly and, this time, completely. I’ve got to admit it’s a pleasant surprise. We’re paying CEO Weinhold just $338,3310, and the top 5 employees are only getting $1,150,000 or so total:

The rest of the report is quite interesting. The Foundation spent about $500,000 lobbying for the New Partnership, pays some very high consulting fees, and still refuses to break out it’s contributions to UO into athletics/academics categories.

Millions for jocks, not a cent for scholars

1/18/2012: That’s the word on the $5 million Jock Box gift from John Jaqua’s widow. Greg Bolt explains the basics, here. Duck press release here. And now Rob Mullens has admitted that he is going to use all the proceeds to cover the small part of the maintenance and utilities that the athletic department must pay. Not a cent will go to help the academic side pay for the $1.83 million cost of running the athlete-only tutoring operations. Where was UO’s VP for Development Mike Andreasenwhile this gift was being negotiated? Not doing his job for the academic side. Where was UO Foundation President Paul Weinhold? Cashing his paycheck. What is the probability that the widowed 91-year-old donor, the generous and rather interesting Robin Jaqua, understood how UO’s athletic department would use her gift? ____%. Meanwhile, the athletic department is continuing to play hardball with the students over football tickets and costs. Because they are that greedy. Emily Schiola has the story in the ODE.

sex, money, and secrecy

11/21/2011: I’d always wondered why reporters were spending so much time on the child rape coverup and so little time on the money that Joe Paterno and his crew were raking in. It turns out this was because Penn State had secured an exemption to the Pennsylvania public records law, the wisdom of which is now being reconsidered:

Unlike the most obscure of state agencies or the smallest municipal government, the universities, which annually receive hundreds of millions of dollars in state funds, are required to disclose “nothing, zippo” under current law, said Terry Mutchler, executive director of the state Office of Open Records.

UO is covered under Oregon public records law, and the situation is slowly improving since the bad old days of Melinda Grier and Liz Denecke. But last year the UO Foundation went to Attorney General Kroger and procured a special ruling exempting them from Oregon’s public records law. Here’s the letter from their lawyer, Frederick Batson, requesting the ruling.

The UO Foundation is mostly an expensive money laundering operation for the Duck Athletics Fund. This year they cut academic scholarships by $1.4 million, while their overhead went up $2 million. Want more details? Tough Shit. Compliance Officer Erika Funk will only release the bare minimum of data, and that as late as possible. Their IRS 990 form was due Nov 15, but in past years they’ve ran out every possible extension – here are some very old numbers. When new data comes out, someday, I expect to see CEO Paul Weinhold making over $400,000, and CIO Jay Namyet over $350,000 – despite the fact he’s way below his benchmarks on investment earnings.

UO Foundation hides athletic spending data

10/22/2011: Want to know how much the Oregon State University Foundation gets in donations for athletics? No problem, check page 16 of the the Council for Aid to Education’s “Voluntary Support of Education” survey for OSU, 2011:

Want to know how much the UO Foundation gets? Too bad, they leave that part of their survey totally blank. I asked their CEO Paul Weinhold if they would agree to start reporting this. His answer? “No.”

What are they hiding? They do release data on the subset of giving that is for current operations (i.e. not endowments or buildings). No surprise, more and more of that goes to athletics:

More on this here.

UO Foundation cuts scholarships $1.4 million, increases administrative spending $2.0 million.

10/22/2011: The UO Foundation’s job is managing funds from UO donors, investing the UO endowment, and disbursing the funds to UO for scholarships, etc. They’ve just released their 31 page annual report, here. I’m no accounting professor, but people have earned tenure showing the correlation between glossy pictures in annual reports and efforts to hide bad financial news. This report is not an exception.

Curious about what the foundation pays their CEO, Paul Weinhold? Good luck finding that. What sort of bonus did Chief Investment Officer Jay Namyet get? None of your business, professor punk. Last year they actually went to Attorney General Kroger and procured a special opinion exempting them from Oregon’s public records law. Here’s the letter from their lawyer, Frederick Batson, requesting the ruling.

You can get some spending info from the required IRS 990 reports – but not until their “compliance officer”, Erika Funk, runs out every possible extension delaying the release of the info. She sure earns her salary – it will be May of 2012 before we learn what Foundation executives took home in 2010. Still, this year’s official report does have a few bits of actual data, hidden among the glossy photos:

You read these things from the back. Start at page 30:

That’s right. They cut scholarship funding by $1.4 million, while they increased spending on Foundation Administration – that’s themselves – by $2.0 million. I’m guessing Weinhold’s take was $350,000 or so plus expenses, and another $250,000+ for Namyet.

So what did we get out of this crack team of executives? The foundation’s recent investment returns are well below what they’d get by just putting the endowment in the Russell 3,000 etc:

We are paying Jay Namyet to guess on the market, and he’s just not that lucky a guy. Of course he’ll still get a fat paycheck – but too bad for our scholarship students.

Scholarships: $6 million for academics, $9 million for athletics

10/20/2011: Institutional Research reports that last year the UO Foundation spent ~$6 million on Academic, merit, and need scholarships.

Puts that $3.2 million overhead subsidy for athletics into perspective. Oh yeah, the Foundation spent almost $9 million on athletic scholarships. And of course the athletic department spent $2 million of general funds on the Jock Box tutoring. Athletes only.

Gabon agreement

7/13/2011 update: I’ve written UO Public Records Officer Liz Denecke asking her to forward *all* the agreements, and I copied Dennis Galvan and John Manotti. Still no reply. Maybe it makes sense for UO to cut deals with corrupt politicians (as with Pernsteiner for example) but not in secret.

7/12/2011: One month after President Lariviere signed this – apparently with no input from faculty other than Dennis Galvan – I’ve finally managed to get a copy of the formal agreement, via a public records request.

But the meat of the agreement, the “Twin Edens” proposal part, with all the details including the “significant investment”, was not included in what I received from Public Records Officer Liz Denecke. Sort of like she did with the Willie Lyles reports. Maybe the hope is that by using the UO Foundation’s exemption from Oregon’s public records law the details can be kept secret? Good luck with that.

UO Foundation concerned about Lyles

7/8/2011: This is hilarious – from Ken Goe in the Oregonian. For years the UO Foundation has been little more than a money laundering operation for the Duck Athletic Fund. And all of a sudden the Chairman of the Board of Trustees is “concerned”?

… So, trustees were caught flat-footed by the latest revelations from Lyles, having been told by the administration the NCAA had essentially come and gone on the matter.

Norman Brown, an investment banker in New York who is chairman of the trustees, said this week that Lariviere offered a review of the situation at the board’s regular meeting on June 9th. …

On Wednesday, Brown said he had “no concern at this point..There’s no there, there. This is an old story. You’re embarked on a cul de sac.”

Interviewed again Friday, after he read some of the media accounts of Lyles’ latest interviews, Brown said he wanted to see all the facts before coming to any conclusion.

“At this point I’m concerned that all the information is not out, ” he said. “The story as it is being woven right now is not one that makes people happy. I want to see all the facts.”

Ever heard of due diligence, Mr. Brown? Maybe getting all the facts would be easier it the Board hadn’t let their CEO, Paul Weinhold, go to the DOJ to get a special exemption from Oregon’s public records law last year. Or did Weinhold hide that from you too?