Kroger to review $2.3 million "handshake deal" between UO and Mike Bellotti

Kari Chisholm FacebookTwitterWebsite

Tonight, KATU reports that Attorney General John Kroger will investigate the $2.3 million payment made to outgoing University of Oregon athletic director (and former head football coach) Mike Bellotti.

A little more than a week ago, Bellotti had announced that he'd be leaving UO after less than a year as athletic director to take a job as a college football analyst for ESPN.

As Oregonian columnist Steve Duin pointed out, the $2.3 million payment was a surprise - since Bellotti was reported to be working without a written contract:

The latest reminder of this [Phil Knight -related] privatization is the $2.3 million parting gift that Duck athletics, its budget already ballooning, dropped on Mike Bellotti on his way out the door.

It's interesting enough that UO was forced to so richly compensate Bellotti for kicking him upstairs in the rush to make room for Chip Kelly as the Ducks' new football coach.

But it's darn revealing that Oregon never put that platinum parachute in writing, giving new meaning to the phrase, "hush money." Because Bellotti negotiated an oral agreement with university President Richard Lariviere, it dodged scrutiny until Bellotti bolted for ESPN.

As Steve Duin reported, the AG expressed skepticism right from the start:

When I put the question to the attorney general's office, spokesperson Tony Green said, "As a general principle, the attorney general believes oral contracts are inconsistent with government transparency."

I'm glad to see the attorney general looking into this. Obviously, the government - of which the University of Oregon is a part - shouldn't be engaging in handshake deals, certainly not multi-million dollar ones.

But more than that, why should the UO be paying Bellotti if he's voluntarily quitting? I know that "contract" is a loose term in college sports, but severance payments usually only get paid when someone is fired.

Was Bellotti fired? And if not, why is UO paying him on the way out the door? What public interest (or even "business" interest) could there possibly be to pay someone who is quitting to take another job?

  • Kurt Hagadakis (unverified)
    (Show?)

    Wow. The crap actually got deep enough that Kroger can't step around it.

    How many have even an inkling what a progressive governments's approach to U of O athletics would be? How can some liberals not see that continuing to raise revenue to fund good ol' boysz as usual undercuts everything and gives ammunition to the "cut waste/no new taxes" crowd?

    I'll say it again, all levels of government need mroe of a service mentality. It is not the case that you only get the best and brightest by paying the most. That gets you the greediest. I also said that once you give U of O bond money, and then allow them to make all broadcasts pay only, that you have given them a behavioral blank check. Seems the chickens have come home to roost.

    Glad Kroger is doing something.

  • Lou Fleming (unverified)
    (Show?)

    I think the business interest could be to gain a "West Coast" talking head on College Gameday. Every time ESPN sheds its SEC bias and actually schedules a national game on the West Coast it means big bucks for the PAC 10.

  • DanOregon (unverified)
    (Show?)

    While I don't know how much longer the state should declare any authority over public schools given the declining funding, and don't think the state is in a position to alienate or scare off any private donors - I think Kroger's decision is probably being welcomed by most in Eugene who have grown tired of catering to the whims of Nike. Heck, they've got the library, the expanded football stadium, the baseball program and the basketball arena, it's not like Phil Knight can take them back now. Maybe now they'll let the coaches pick what uniforms the team will wear.

  • Boats (unverified)
    (Show?)

    Maybe the legislature should tax the UO AD. Obviously there is some cash there and what is the UO going to do, move out of state?

    Then the legislature can "redistribute" the cash to OSU, which runs its athletic budget at a perpetual deficit--red ink made up for wholly out of the general university funds provided by the state.

    So let's recap: The UO pays Bellotti $2.3 million dollars out of money they raised privately, by a department that by most accounts runs at no cost whatsoever to taxpayers, and that warrants an investigation? However, the embarrassingly hand-to-mouth OSU, which should be in the WAC given its budgetary woes, remains a non-subject despite coming up short more than $2.3 million dollars every year for as long as anyone can remember?

    Sounds about right for a state that punishes success at every turn.

  • (Show?)

    The UO pays Bellotti $2.3 million dollars out of money they raised privately, by a department that by most accounts runs at no cost whatsoever to taxpayers, and that warrants an investigation?

    Except that the $2.3 million is a charitable donation, which qualifies for a tax deduction. It's likely that whoever gave it cost federal and state tax rolls somewhere between $700k and $1.2m.

    Remember: charitable donations have to serve some charitable purpose.

  • (Show?)

    Let’s see. Bellotti gets $2.3 million.

    On 3/26, the Oregonian reported (here):

    “The Oregon Student Assistance Commission reported to the Legislature in February that it had committed $9.7 million above its $57 million budget this year to scholarships known as Oregon Opportunity Grants. This week it reported that overcommitment has swollen by $5 million to $9 million more.”

    And further:

    “For each $1 million in overcommitment this year, about 630 students will be denied a state grant next year.” So, by my math, Bellotti’s $2.3 million could fund Oregon Opportunity Grants for 1,449 additional students or send 287 Oregon high school students to China for one year (at $8,000 each). My priority would not be Bellotti’s payment.

  • Greg D. (unverified)
    (Show?)

    I believe the AG should obtain restraining orders requiring Bellotti and Kent to each remain working for the U of O for 5 more years at reduced compensation and with the forfeiture of many scholarships by both football and basketball programs. That will teach 'em.

    Go Huskies.

  • Boats (unverified)
    (Show?)

    The academic side of UO, the budgetary shortfalls of which are primarily due to decades of shameful fiscal maladministration by our legislature, and the self-financing UO AD, do not have fungible accounts.

    Were the UO AD paying Bellotti out of state taxpayer funds, there might be a point in linking this to "missed opportunities" for students, but they're not so there isn't.

  • Boats (unverified)
    (Show?)

    believe the AG should obtain restraining orders requiring Bellotti and Kent to each remain working for the U of O for 5 more years at reduced compensation and with the forfeiture of many scholarships by both football and basketball programs. That will teach 'em.

    Go Huskies.

    <h2>Perhaps UW should hire Kent to teach Romar how to at least make the Elite Eight. Your guy is apparently clueless on this matter. Go UW indeed.</h2>

connect with blueoregon