Don’t cry for Mike Bellotti – PERS decision boosts his take back up to $13M

Ted Sickinger’s amazing 2011 story on how the people of Oregon came to be paying former Duck coach Mike Bellotti $500K a year in pension benefits is here. In essence, Bellotti PERS payout is based on all the money he got in bonuses and Nike deals, even though the state never withheld anything for PERS. This on top of the buyout deal he got after former UO GC Melinda Grier neglected to get a written contract for him, and then assistant GC Doug Park helped keep that from reporters.

As Sickinger’s story explains, a good chunk of state PERS costs go to fund past deals like these – not to accumulate reserves for the retirement of current workers. And the UO administration bargaining team will soon use these costs to argue that they can’t afford raises for the faculty and staff.

Bellotti was one of the big losers from the 2013 reforms, which cut COLA increases from 2% a year on the full pension payment to 1.25% on the first $60K plus only 0.15% for amounts over that. So he’s a big winner from the recent Oregon Supreme Court ruling that restored the 2% rate. Regular retirees will benefit a little – but people like Bellotti with big PERS checks are the big winners.

The Gain columns are per year – e.g. Bellotti’s payout for 2015 will be $109,147  higher after this court decision, a more typical state worker will get $6,290 more.

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Note: Everything is in future values – i.e. not discounted back to reflect the time value of money. These calculations are back of the envelope and don’t consider all the twists in the law, including some retroactive payments that PERS will now have to make, e.g. for 2014.

UO General Counsel’s office loses another one

7/29/2014:

Johnson Hall sure is hard on lawyers. In 2010 President Lariviere fired GC Melinda Grier for hiding public records about Mike Bellotti’s contract, then appointed her assistant Randy Geller after what mounted to a failed search for a replacement. (It appears Gottfredson has rehired Grier on the side though). In 2013 Assistant GC Paul Kaufmann left without explanation, half way through his initial one year contract. Earlier this year Randy Geller “retired” in the midst of the scandal over Gottfredson’s handling of the March8-9 basketball rape allegations.

And now the word is that Assistant GC John F. Salmon III left at the end of June, about 6 months after being hired. Again, no explanation.

Given that UO’s Legal Services Policy (if it’s ever signed by Gottfredson) gives these people the responsibility to defend UO and faculty and staff against accusations of misfeasance etc, and help Gottfredson stonewall the release of public records, you’d think that we could at least get a list of the current GC office’s attorneys and their qualifications. Nope. Their website is still “under construction” and has been since that embarrassing “General Counsel Emerita” episode in 2012:

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7/31/2012: Geller defames judge, appoints Grier as UO’s General Counsel Emeritus, attacks Senate Pres and IAC

In response to demands from Senate President Kyr and others including Frank Stahl, Nathan Tublitz and John Bonine, UO General Counsel Randy Geller announced yesterday he’s rescheduling his random drug testing hearing.

But it’s a sham, he’s picked another date when school is out of session. And he completely ignores the faculty / administrative agreement calling for UO policies like this to go through the Senate. That “policy on policies” agreement with Lariviere had been the Senate’s major accomplishment for 2011-2012. Now Geller thinks it isn’t worth a mention.

Geller also claims Senate President Rob Kyr and the IAC Chair made false and offensive comments about the university’s rulemaking process. Apparently that process’s feelings have been hurt, so Randy asks Kyr et al to apologize to it, and to some especially sensitive senior administrators:

Dear Rob and Brian:

I received your email of July 24, 2012, requesting a delay in the public hearing scheduled for August 23rd, 2012. The hearing will be rescheduled for September 13, 2012. Written comments will be accepted until noon on September 14, 2012. We will similarly postpone the date the rule will be filed with the Secretary of State and become final. The rule will be filed on September 21, 2012.

Your allegations about the University’s rulemaking processes are offensive and false , as are the comments made publicly by members of the Intercollegiate Athletics Committee. I ask that you apologize in writing to President Berdahl, Rob Mullens, and me. I also ask that you censure the members of the IAC who have published offensive and defamatory comments.

Randolph Geller

General Counsel
University of Oregon

I like that “in writing” part. Maybe Geller wants Kyr to stand in front of the whole class and use the blackboard, like in third grade? Geller sent this out yesterday. Berdahl’s last few days look to be as crazy as his first. Adult supervision supposedly returns Aug 1, but Gottfredson still hasn’t signed his contract. and Gottfredson apparently signed his contract last night.

8/27/2012 9:00 AM: Geller defames judge:

Sorry, long story. Back in 2010 UO’s General Counsel Melinda Grier got in big trouble for ignoring multiple public records requests and failing to get a written contract for her friend, Athletic Director Mike Bellotti:

It was a big scandal and a humiliation for new UO President Lariviere, especially when he then had to pay Bellotti millions, after firing him for what was reportedly lax financial management of the athletic department.

So Lariviere fired Grier too, and got the Oregon DOJ to look into what had happened. Their investigation took 381+ hours, cost UO $44,086.60, and concluded that Grier (and/or her office, a bit ambiguous) had provided “deficient legal representation” to UO.

Lariviere then tried to hire an outside replacement for Grier, but after 6 months with no luck he gave up and just promoted her associate GC, Randy Geller. (Randy’s letter and resume are here. It was supposed to be a public search, but he wouldn’t release these until I petitioned the AG’s office under the public records law. His bit of intransigence cost UO another ~$1,000 in DOJ billing time.) Grier’s assistant GC Doug Park became the associate. And then eventually of course Lariviere got fired too, to be replaced by Berdahl and now by a permanent President, Mike Gottfredson.

And during the transition to Gottfredson a few weeks ago, Geller sent out a string of odd emails. One accused the UO Senate President and others of defaming him. Another, sent to the Senate STC, with President Gottfredson cced, included this:

The “investigation” of Melinda by DOJ was a hack job. Unfortunately, she was the first of several victims of the former Attorney General. His incompetence eventually led to his decision not to run for a second term and then to resign before the end of his term. If you google “John Kroger” I am sure you will find the Oregonian and Willamette Week articles.

There’s no doubt that Kroger, who has gone on to become president of Reed College, had his issues. But the Grier investigation was led by longtime Associate Attorney General David Leith, now a Marion County Circuit Court Judge. The other investigator was Keith Dubanevich, now Oregon Associate AG. Accusing a sitting judge and an associate AG of a “hack job” is competent professional behavior for UO’s chief lawyer? Maybe Geller’s just mad because the DOJ is fighting his efforts to get them to pay Frohnmayer’s law firm $864,000.

Meanwhile, who was it that broke the story on the Grier firing? Jeff Manning, at the time an investigative reporter for the Oregonian. And now the spokesperson for the AG John Kroger’s replacement, Ellen Rosenblum. And what happened to Melinda Grier? She’s been working as a consultant in an office she shares with a law firm that’s tried to persuade Randy Geller to hire them to do legal work for UO.

And – I’m not making this up – a few days ago Geller declared that she is now UO’s “General Counsel Emeritus” (sic):

Screen shot above, page here. We’ll see how long it stays up.

10:15 AM update: Grier’s now off Randy’s website. That was quick. The html from Friday is here. A commenter notes that this would break UO’s new policy for faculty emeritus status, which Geller and Berdahl signed off on in May. No word on his apology to Judge Leith and AAG Dubanevich yet.

12:15 PM update: Steve Duin of the Oregonian gets Geller to speak. Well worth reading. Must have been a fun party.

4:20 PM update: Geller apologizes to Kroger.

If he’s apologized for his equally unprofessional accusations against UO Senate Pres Kyr and IAC members, I guess I wasn’t on the list. From all indications UO’s new random duck drug testing policy will go forward without UO Senate review.

And this, via UO spokesperson Phil Weiler:

Statement regarding DOJ inquiry/General Counsel website

I have communicated directly with the president of Reed College and former
Oregon Attorney General John Kroger expressing my regret for the ill-advised
email I sent several weeks ago. My comments were unacceptable and I have
apologized to the former Attorney General and his staff.

I also recognize that it was inappropriate to use my office’s website to
recognize the former General Counsel for her years of service.

Randolph Geller
General Counsel

I’ve acquired quite a collection of other “un-lawyerly” messages from Randy over the years.

Eugene Weekly publishes more on rape allegations, letter supporting Freyd survey.

6/26/2014:The letter from a fellow of the American Psychological Association is here: The second part of the story by Camilla Mortensen is here. Meanwhile the Lane County DA’s decision on the NYT appeal of Dave Hubin’s redactions is due early next week.

6/12/2014: Eugene Weekly publishes story on Duck athletics and sexual assault

Just in time to be distributed to the Trustees at their meetings today and tomorrow, and to the parents visiting for Monday’s commencement:

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The report from Camilla Mortenson has a lot of history, including this from a student who reported an alleged rape involving a football player in 2001, and has now gone public with how UO responded:

After she reported the incident to the UO, Goodman says she received a 7 am phone call from former Ducks football coach Mike Bellotti questioning the accuracy of her recollection of that night. “I said, ‘I know you have a daughter and you wouldn’t grill her the same way.’” EW has contacted ESPN for a response from the former coach.

Given that President Gottfredson and AD Rob Mullens clearly hoped to cover up the March 8-9 allegations as well, it makes you wonder how many other similar assaults have been reported to the UO administration, and kept from the press and public to protect the Duck athletic program’s brand.

6/6/2014 update: UO removes all mention of Gottfredson from Commencement website

Old version below. New official UO website here. Gottfredson is off the website. Also the “Duck Walk” will now bypass Johnson Hall, the scene of many recent protests against Gottfredson’s handling of the March 8-9 basketball rape allegations.

Presumably they are printing the glossy programs now, didn’t want to have to go through them pasting a little “Interim President Coltrane” sticker over each mention of “President Gottfredson”. Not to mention having to deal with the pictures. Here’s Gottfredson’s 2013 speech:

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Duck Coach Aliotti to get Frohnmayeresque PERS payout

4/18/2014: Ted Sickinger has the story in the Oregonian:

Aliotti is 59 years old. If he lives another 26.5 years, as PERS’ actuarial tables predict, the state pension system will pay him about $6.6 million in retirement, plus cost of living increases.

Where will that $6.6M come from? As Sickinger explained in his earlier story below, these payouts are so high because UO pulled a scam with how it treated the Nike money that is part of the coach’s compensation. So UO and OUS didn’t pay enough into PERS for to cover these payouts, and now the rest of the money will have to come by diverting payments from current UO/OUS employees.

And then the university will claim that, when they count the cost of faculty benefits, faculty are overpaid. Got it?

4/10/2012: Bellotti, Frohnmayer top PERS payouts

It took a long legal struggle, but the Oregonian has been getting data on PERS payouts from the state, bit by bit. The Ted Sickinger story on how Mike Bellotti managed to pull off his $500K pension scam is pretty amazing. It will cost taxpayers $5 million.

And here’s a bit on how Bellotti took UO for another $2.3 million, plus this. He tried to get $7 million. And now the curious/jealous/outraged/smug can now check up on their friends and colleagues retirement benefits on the Oregonian website:

 

Oregon holds out on multi-year scholarships for players

From the Chronicle, 4/19/2013:

Nearly two-thirds of the 56 most powerful Division I public universities now offer multiyear awards, according to a Chronicle review of public records. Yet few of those institutions do so for more than a handful of athletes. 

Among the holdouts are some of the wealthiest programs, including the University of Texas at Austin, the University of Oregon, and Texas A&M. At the University of Arizona, Georgia Tech, and the University of Louisville, this year’s NCAA men’s basketball champions, you can count the multiyear beneficiaries on one hand. 

Officials from some of those colleges say their hesitation is not about the money—they just oppose making long-term promises to prospects who may not hold up their end of the bargain. 

“Who gets a four-year, $120K deal guaranteed at age 17?” Christine A. Plonsky, women’s athletic director at the University of Texas, wrote in an e-mail to The Chronicle. “The last thing young people need right now is more entitlement.”

Speaking of entitlement, AD Rob Mullens and most of the UO coaches have multi-year contracts that require UO to pay their salaries even if they are fired. And of course we know what Frohnmayer/Grier gave Bellotti, who is also getting more than $500K a year from PERS, as a result of some very unusual accounting tricks.

Wisconsin wasn’t afraid to give me a 4 year guarantee. Of course that was just for graduate school, not something that would bring in millions for the coaches and the athletic director. And I wasn’t a naive 17 year old prohibited from hiring an agent to look after my interests. Nice scam these guys have got going.

Horton’s PERS costs to approach Bellotti’s?

Bellotti was able to take advantage of a variety of loopholes – including a well timed divorce and remarriage, plus payments based on Nike earnings for which no contributions were made – to get a budget busting $500,000 a year PERS payoff. Ted Sickinger of the Oregonian did an amazing investigative story on that last year, after the Oregonian sued PERS for the data. The always well informed Hannah Hoffman explains that b-baller coach George Horton won’t get the same special benefits, due to recent federal reforms. Meanwhile all of us in the 57% are paying for Bellotti, and will be for a long time. The state recently announced huge increases in the cost of covering past PERS largess, the Oregonian has covered this in detail, one story here.