Rich Rodriguez (official thread)

[ScriptOhio]

MORGANTOWN, W.Va. -- West Virginia University says ex-football coach Rich Rodriguez has agreed to pay a $4 million buyout clause after breaking his contract.
That would settle WVU's lawsuit that had been set for trial this fall. WVU attorney Tom Flaherty says the tentative agreement was reached late Tuesday night.
Flaherty says he's confident the WVU Board of Governors will approve the deal. Rodriguez quit the Mountaineers in December for the head coaching job at Michigan, only a year after extending his contract with WVU.
He claims WVU broke the contract first by failing to honor certain promises -- a charge WVU denies.

Entire article: Rodriguez agrees to settle with WVU, pay $4 million - NCAA Football - CBSSports.com Live Scores, Standings, Stats

[LightningRod]

BREAKING NEWS: Tentative agreement reached in Rodriguez, WVU suit

MORGANTOWN, W.Va. -- The lead lawyer for West Virginia University in its lawsuit against former head football coach Rich Rodriguez said today that a tentative settlement has been reached in the case.
Tom Flaherty said the agreement calls for the university to receive all of the $4 million that Rodriguez agreed to pay the school if he left his contract early.
Flaherty said the settlement was reached between lawyers for both sides and a mediator just before midnight.
The settlement won't be final until the full WVU Board of Governors approves the terms, Flaherty said.
"I've got a high level of confidence that it will get done today," Flaherty said.
If nothing happens before 3 p.m., several aspects of the case will continue.
A Michigan judge is set to rule at that hour on a petition WVU filed to issue subpoenas to UM president Mary Sue Coleman and Athletic Director Bill Martin. WVU attorney Jeff Wakefield said the legal route became necessary after previous requests for Coleman and Martin to voluntarily subject themselves to depositions were denied.
"They took the position that they don't possess any knowledge or any information relevant to the lawsuit," Wakefield said. "We think otherwise. Obviously, there were meetings between the athletic director and the president and Mr. Rodriguez and his representatives before Mr. Rodriguez accepted their job offer."
WVU continues to work on dates to depose Rodriguez's wife, Rita, and financial advisor, Mike Wilcox. Wakefield said Wilcox will be served a subpoena Aug. 15 if the sides cannot agree to a date. Previous depositions for both were canceled because of mutual scheduling conflicts.
WVU also wants to depose former video coordinator Dusty Rutledge, who is now an administrative assistant at UM. Depositions have revealed Rutledge overheard the conversation between Rodriguez and WVU President Mike Garrison the night before Rodriguez resigned. Rutledge has publicly opposed Garrison's rendition of the conversation. Wakefield said WVU is interested in finding out exactly what Rutledge knows in sworn testimony.
No recording of the conversation exits.
"We have asked repeatedly in written discovery requests if there are any recordings Mr. Rodriguez and his representatives have or are or aware of and they have repeatedly denied that there are any," said Wakefield, who added a recording would be inadmissible if one suddenly appeared.
Rodriguez claims he was fraudulently induced into signing his contract when Garrison promised to remove or reduce the $4 million buyout. WVU disagrees and disputes Rodriguez's assertion he was forced out. The attorneys believe they can prove Rodriguez wanted to leave and take the job at UM, which is where Coleman and Martin come into play.
"We can demonstrate he wasn't forced out at WVU and he took the Michigan job because that's what he wanted," Wakefield said. "We hope to find out what President Coleman and Athletic Director Martin know and we want to know what discussions occurred about Mr. Rodriguez's contract with (WVU), in particular the provision in the contract that required him to pay the $4 million liquidated damages clause."
Rodriguez's agent, Mike Brown, said in his deposition he contacted UM first on Dec. 11. A meeting with Rodriguez and Coleman and Martin followed three days later in Toledo, Ohio. WVU believes part of the negotiations included an agreement between Rodriguez and UM that would require the school to handle some or all of the $4 million, which would then prove Rodriguez knew he was legally bound to that provision.
Monongalia County Circuit Court Judge Robert Stone ruled last month Rodriguez was to submit unredacted drafts of the term sheet he signed with UM. WVU believes blacked-out portions of the draft explain how UM will address the buyout.
The drafts were due Tuesday. WVU didn't have them late Tuesday night, but was aware of what the drafts contained.
--Contact sportswriter mike Casazza at mi...@dailymail.com or 319-1142.

The interesting twist to this deal is who actually pays the buyout amount. If UM picks up the tab, RR realizes taxable income under the economic benefit doctrine since his legal obligation was paid by another. RR's financial advisor stated that he believes internal revenue code section 1341 may be applicable to help RR, but 1341 is nowhere near relevant to RR's situation. In fact there are 3 revenue rulings directly on point that dispel the applicability of 1341 in situations factually indistinguisable from RR's sitaution. Further, 1341 transactions have been desiganted as listed transactions by IRS and will be vigorously challenged by the Service. We may get to see RR in another court forum in the not too distant future if RR's advisor convinces RR to go down this path.

[BuckeyeNation27]

Sweet....good ol Dick Rod is already 0-1.

[OSUBasketballJunkie]

Dispatch

College football: Rodriguez will pay $4 million to West Virginia

Wednesday, July 9, 2008 8:46 AM



ASSOCIATED PRESS
ASSOCIATED PRESS
Rich Rodriguez quit at West Virginia in December to take the head coaching job at Michigan, only a year after extending his contract with the Mountaineers.


MORGANTOWN, W.Va. -- Former West Virginia football coach Rich Rodriguez has agreed to pay a $4 million buyout clause and settle a lawsuit that the university filed after he broke his contract in December.
The tentative agreement, which university attorney Tom Flaherty expects will be approved by the WVU Board of Governors later today, would end a case that had been set for trial this fall.
"It's a case that should have settled a long time ago and could have settled a long time ago," Flaherty said. "It's in the best interest of everyone to resolve it."
A call to Ohio attorney Marv Robon, representing Rodriguez, was not immediately returned.
Rodriguez quit the Mountaineers in December for the head coaching job at Michigan, only a year after extending his contract with WVU. He had argued that WVU broke the contract first by failing to honor certain promises -- a charge WVU denied.

Continued.....

[ysubuck]

So...after all that he's paying it anyway? The full amount?

What a colossal waste of time and money.

[DaveyBoy]

The colossal waste of money will be what the Michigan fans think of his hiring in about 4 years. He will get Michigan back to 10 wins, but that is it. They will still be 10-2 and lose to OSU....but will have sullied their reputation in the process.

Gotta love panic hires by overmatched athletic directors.

[LightningRod]

Payment terms of the settlement:

Rodriguez, WVU near $4 million buyout settlement

At the urging of University of Michigan officials, who are expected to announce the news this morning, Wolverines football coach Rich Rodriguez reached a settlement late yesterday to pay his former employer, West Virginia University, the $4 million buyout at issue during the past 6 1/2 months in a lawsuit likened to a messy divorce.
Sources today said Rodriguez will pay $1.5 million over a three-year span that begins in two-and-a-half years, with $500,000 due at the end of each 2010, 2011 and 2012.
Michigan will pay $2.5 million immediately, and additionally is expected to pick up Mr. Rodriguez's legal fees. West Virginia's legal fees will be billed to university officials later, but Charleston-based Tom Flaherty, whose firm represented the WVU Board of Governors and the university, said this morning, "I believe it will be reasonable."
Mr. Flaherty, who declined to divulge specifics of the agreement, said details of the settlement would be brought before the Board of Governors for approval.

cont'd