Rutgers University Has Spent $2.3 Million in Athletic Department Abuse Scandal Case
ByJulie Hermann appears as if she will start her new job on schedule, but according to USA Today, Rutgers has spent $2.3 million and counting on the scandals surrounding the school's athletic department before she's officially taken over.
Included in the two-plus-million-dollar figure are settlements, search committee fees and crisis management consultations. Even though scholarships do not come out of the same fund, USA Today estimated that $2.3 million would be enough money to offer 95 New Jersey students a full ride for one year each.
Rutgers University is a publicly-funded state university and its athletic department is the second-most subsidized in the nation.
According to USA Today-Sports' Keith Sargeant, the figures are as follows: $1.2 million for a settlement with former AD Time Pernetti, $475,000 for a settlement with former men's head basketball coach Mike Rice, $420,000 payout to counselor John Wolf (he was pressured to resign after advising a suspension to Rice instead of termination), $150,000 to Hill & Knowlton, a crisis management firm, and $70,000 to Parker Executive Search, an executive search committee that performed Hermann's background check.
Not included in the $2.3 million is a $575-per-hour rate Rutgers has agreed to pay Skadden, Arps, Slate, Meaghen & Flom, a law firm conducting an independent review of the school' basketball coaching scandal.
Rutgers president Robert Barchi spoke before an Assembly Budget Committee and received negative feedback regarding the expensive buyouts.
"A dollar wasted, especially with the challenges of higher education, is a dollar too much," Assemblyman John McKeon, D-27th District, said. I mean, what does the reputation of Rutgers mean to the state? I'd say it's priceless."
The New York Times reported on Wednesday that Rutgers donors and politicians took issue with Hermann's expensive hiring process. Search committee leaders sent an e-mail to the group and some of the members replied with concerns that the search was rushed and hidden in the dark. One of the members brought up the lawsuit against Hermann and complained that issue was not appropriately addressed.
Ken Schmidt, one of the group members of donors and politicians, said in an e-mail response obtained by the New York Times wrote, "At this time... Please do not try to rewrite the facts. I suspect you will find others that share my opinion."
"Please, let's not present this as any kind of exemplary process," another member, Ron Garutti, wrote. "Subsequent events have proven otherwise."