Louisville is toast.

[shizzle787]

Rick Pitino raked in 98% of the cash from University of Louisville's current Adidas deal

 

[pj]

Ha. No wonder they were able to get such a "large" contract. Fake numbers as usual.

 

[shizzle787]

The sleaze is just beginning.

 

[the Q]

This is somewhat normal. I know Beamer used to get some serious cash from va tech’s deal.

 

[shizzle787]

This is somewhat normal. I know Beamer used to get some serious cash from va tech’s deal.

The FBI doesn't think it's normal.

 

[Chin Diesel]

The FBI doesn't think it's normal.

Why?

 

[uconngb]

Why?

I don't know, perhaps because they were taking some of that money and paying it to kids to commit to the program?

 

[Chuck]

It's hard to tell from a mediocre article, but the relationship sounds super shady. Not just that Pitino got the money, but that Louisville and Jurich held it out as being for the benefit of the student athletes. Now a spokesman is saying it was for the benefit of the student athletes because it allowed Pitino to be their coach. Riiiight. If that's the norm in the industry, I have a problem with it. Be transparent. That deal should be for the benefit of the university and all of its student athletes. If the university decides to allow the payments to go to the coach, in addition to his/her salary, that amount should be disclosed as part of the coach's compensation from the university.

 

[shizzle787]

I don't know, perhaps because they were taking some of that money and paying it to kids to commit to the program?

I'm not sure if that's illegal but it sounds shady at best. There's a rumor going around that the Ville was using Pell Grant money to pay the kids.

Edit: now that I think about it. It may be fraud. Louisville's athletic department is a non-profit so to speak.
They took money and pledged it to one area but actually spent it somewhere else. That's like a cancer charity claiming they would give 100% of the proceeds to research (not salaries) and then giving the top executives bonuses with the money.

 

[uconngb]

I'm not sure if that's illegal but it sounds shady at best. There's a rumor going around that the Ville was using Pell Grant money to pay the kids.

Someone already went over this a bunch of times in one of the other 50 threads. If it wasn't illegal, the FBI would not be involved.

 

[shizzle787]

Someone already went over this a bunch of times in one of the other 50 threads. If it wasn't illegal, the FBI would not be involved.

See my edit.

 

[Chin Diesel]

My Why? was based on initial post of most of the money going to Pitino.

Nothing illegal if it's disclosed as compensation and declared on taxes.

Point being they have to connect that money to something illegal.

 

[the Q]

The FBI doesn't think it's normal.

There’s more going on than just that.

Just saying that other school coaches get paid from their equipment deals.

 

[shizzle787]

There’s more going on than just that.

Just saying that other school coaches get paid from their equipment deals.

I'm sure there is. Hope we are not involved to the extent Louisville is.

 

[Jaker]

Is there an actual federal law on the books that says you can't pay recruits to attend a school?? I suspect tax evasion is the biggest issue.

 

[Leebo]

Is there an actual federal law on the books that says you can't pay recruits to attend a school?? I suspect tax evasion is the biggest issue.

The laws in question here are mostly about committing fraud with large amounts of money and the fact that coaches are technically public employees at these schools.

Adidas could openly give $100,000 to a kid to attend Louisville if they wanted. But doing so would openly make said kid ineligible for NCAA participation and thus Louisville wouldn't give the kid a full scholarship to attend. But since it's hidden it is regarded as fraud against the school (even though we all know the schools are complicit to an extent).

 

[BUConn10]

It's hard to tell from a mediocre article, but the relationship sounds super shady. Not just that Pitino got the money, but that Louisville and Jurich held it out as being for the benefit of the student athletes. Now a spokesman is saying it was for the benefit of the student athletes because it allowed Pitino to be their coach. Riiiight. If that's the norm in the industry, I have a problem with it. Be transparent. That deal should be for the benefit of the university and all of its student athletes. If the university decides to allow the payments to go to the coach, in addition to his/her salary, that amount should be disclosed as part of the coach's compensation from the university.

Yea, but this would require a massive amount of honesty and integrity that Louisville has shown time and time again it simply is not capable of displaying.

 

[UConnJim]

There is nothing wrong with paying a coach with money from an athletic apparel deal. BUT, the way the Louisville organization paid Pitino and Jurich was not transparent and there could be some accounting improprieties. Based on the stories coming out that Pitino and Jurich were the highest paid in the country at their positions and the fact that Jurich ran the AD for ~20 years probably means there could be some ugly disclosures coming.

What a mess!

 

[Fishy]

Rick Pitino raked in 98% of the cash from University of Louisville's current Adidas deal

This isn't illegal.

Unseemly, but not illegal.

Recap - Louisville athletics loses money. The City of Louisville loses money. Pitino and Jurich make more money than anyone else.

That would be a racket. Funny that the media is just now interested.

 

[CTMike]

Rick Pitino raked in 98% of the cash from University of Louisville's current Adidas deal

“I’m toast? No you’re toast!”
shizzle787

 

[upstater]

Is there an actual federal law on the books that says you can't pay recruits to attend a school?? I suspect tax evasion is the biggest issue.

Yes. Filing for financial aid and lying on your forms. You file with the federal gov't. Now, with the $5k stipends, each kids files a FAFSA because the schools know they become eligible for Pell Grants.

 

[Chin Diesel]

Yes. Filing for financial aid and lying on your forms. You file with the federal gov't. Now, with the $5k stipends, each kids files a FAFSA because the schools know they become eligible for Pell Grants.

So, what you're saying is, the Law of Unintended Consequences has claimed another victim.

Used to be under the table payments were an NCAA eligibility issue with an indifferent federal gov't not really caring about cash payments.

Technically a crime for not declaring income and paying taxes on that income.

Full cost of scholarship requires filling out a FAFSA and illegally hiding the money.

Now you have full blown federal crimes on the books because besides the under the table payments they were trying to double dip and get legitimate payments too.

 

[nelsonmuntz]

Couldn't have happened to a nicer athletic program.

 

[TRest]

Buried in one of those stories was something I found odd. UL was paying athlete's tuition from an athletic department fund, but not scholarship athletes. They have had extraordinary success in a variety of sports for years now, and from what I could tell, were able to load up limited scholarship sports with athletes getting a free ride and not counting against the scholarship limits.

 

[aceboon]

Confused as to why you posted this story as an indictment of guilt, Louisville is gonna get dinged because of what is in the FBI investigation, not by what was negotiated with Adidas/Pitino. All of these coaches get money from the schools sneaker deals.