Kansas State files suit to block payment to ex-coach

[Steve19]

K-STATE FILES SUIT ASKING COURT TO DECLARE SECRET AGREEMENT INVALID

MANHATTAN -- Kansas State University and its athletic corporation are filing suit today, asking a court to declare invalid a secret agreement signed by Bob Krause, its former athletic director, and by former head football coach Ron Prince for a company called In Pursuit of Perfection, LLC. The secret agreement was signed without the knowledge of anyone else at K-State, according to K-State President Jon Wefald.

If determined to be valid, K-State's athletic corporation would have to make $3.2 million in deferred compensation payments to In Pursuit of Perfection between 2015 and 2020.

In addition to other legal claims, K-State argues that Ron Prince's attorney, Ohio sports agent Neil Cornrich, impermissibly negotiated this secret agreement without involving attorneys for the university. K-State contends that, under attorney ethical rules, Cornrich was required to obtain permission from K-State lawyers before negotiating directly with Krause.

Interim athletic director James Epps issued the following statement:

"On May 11, 2009, I learned of a secret deferred compensation agreement that Bob Krause apparently negotiated with Ron Prince's attorney. This alleged deal was made without the knowledge of anyone else in the athletics department, including its attorney. This deal was apparently constructed as a further supplement to the buyout provision contained in Prince's employment contract. I do not know why any additional supplement was justified, or why Bob Krause concealed this agreement from everyone until it was inadvertently discovered last week.


"I do not believe that this agreement is valid, and the athletics department will vigorously fight any attempt to enforce it."


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[BB73]

This appears to be related to the agreement with Pierce.

CBS

Kansas State suspends two longtime administrators

KANSAS CITY, Mo. -- Kansas State suspended two longtime athletic administrators Wednesday but refused to say why.

Speculation immediately arose whether the suspension with pay of Jim

Epps and Bob Cavello had anything to do with the controversial and allegedly secret agreement to funnel $3.2 million to fired football coach Ron Prince, which the school has challenged in court.

When asked by the Associated Press if the suspensions were related to the Prince controversy, athletic director John Currie referred to a one-paragraph statement the school was in the process of sending out.

"What I can tell you is all I can tell you," Currie said in a telephone interview. "The second sentence of our statement is pretty instructive."
The second sentence states, "This decision is not based upon any concerns about misconduct on the part of either individual."

Epps is a 30-year member of the Kansas State athletic department and currently in charge of daily internal operations as deputy athletic director. Cavello is the associate athletic director for business operations.

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[BB73]

SI.com

NCAA won't look into KSU troubles

An NCAA spokesman told The Star on Monday that the questionable financial dealings uncovered by an audit at Kansas State were not something the NCAA would look into. "We don't comment on current, pending or potential investigations," said Stacey Osburn, associate director of public and media relations for the NCAA. "But this is a university employment decision, and not anything we would be involved with." The audit, released Friday, revealed a pattern of undisclosed payments, conflicts of interest, poor accounting and possible tax problems for Kansas State, several of its former employees and the athletic department.

 

[BB73]

As part of a goodwill effort to the fans, Kansas St is selling 1,989 tickets to their operner against U-Mass for $9.00, which was the ticket price when Snyder started coaching there the first time (in 1989).

SI.com

 

[BB73]

SI.com

Former Kansas State coach asks school for $6M

KANSAS CITY, Mo. (AP) -- Accusing Kansas State of "wanton and malicious misconduct," lawyers for former football coach Ron Prince asked for more than $6 million in damages Monday and said it was the school, not Prince, who wanted a controversial contract to be confidential.

In their written response to a lawsuit filed against Prince by Kansas State, Prince's attorneys also indicated that former Kansas State President Jon Wefald may have known about the agreement calling for Prince to be paid $3.2 million in deferred compensation between 2015-2020.

Kansas State filed suit in U.S. District Court in Topeka, Kan., in May seeking to void the agreement, claiming it was made in secret between Prince and former athletic director Bob Krause and without the knowledge of other university officers, including Wefald.

In documents filed Monday, Prince's attorneys said the university agreed to guarantee a $1.2 million buyout and that the school's Intercollegiate Athletic Council, headed by Krause, subsequently agreed to fund the $3.2 million in deferred compensation.

Prince, unpopular with players and fans, was fired last November with a 17-20 record, three months after signing a new five-year contract. He was replaced by former coach Bill Snyder.

Wefald, who retired in June, maintains that he knew nothing of the agreement with Prince and that he asked Krause to resign when he found out.

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