Secret Prince deal stuns K-State

[snuffy]

Secret Prince deal stuns K-State


http://www.fannation.com/truth_and_rumors/view/103522-secret-prince-deal-stuns-k-state


During the past six months, Kansas State University fans have come to accept $1.2 million as the cost of ridding their valued football program of former coach Ron Prince and his mediocre success in three seasons. Turns out it's worse than they thought. The new price tag is $4.4 million. Prince, now an assistant coach at the University of Virginia, is scheduled to receive $3.2 million more in payments from 2015 to 2020 -- in addition to the buyout amount from his August 2008 contract extension. It's all because of what K-State officials say is a "secret agreement" signed last August by Prince and Bob Krause, K-State's former athletic director. "Secret," as in hiding the agreement from anyone at the university, including president Jon Wefald. In a suit filed Wednesday in Riley County District Court, the university and its athletic corporation seek to invalidate the pact because it alleges that Prince's agent/lawyer negotiated directly with Krause and not through the university's lawyers.

Kansas City Star

[CaliforniaCowboy]

signed last August by Prince and Bob Krause, K-State's former athletic director.


I guess we know why he's "former" AD.

[OrangeCat]

Wow

[legelegel]

Secret Prince deal stuns K-State

http://www.fannation.com/truth_and_rumors/view/103522-secret-prince-deal-stuns-k-state

During the past six months, Kansas State University fans have come to accept $1.2 million as the cost of ridding their valued football program of former coach Ron Prince and his mediocre success in three seasons. Turns out it's worse than they thought. The new price tag is $4.4 million. Prince, now an assistant coach at the University of Virginia, is scheduled to receive $3.2 million more in payments from 2015 to 2020 -- in addition to the buyout amount from his August 2008 contract extension. It's all because of what K-State officials say is a "secret agreement" signed last August by Prince and Bob Krause, K-State's former athletic director. "Secret," as in hiding the agreement from anyone at the university, including president Jon Wefald. In a suit filed Wednesday in Riley County District Court, the university and its athletic corporation seek to invalidate the pact because it alleges that Prince's agent/lawyer negotiated directly with Krause and not through the university's lawyers.

Kansas City Star

First, how did the parties expect this secret money to be paid? Can we assume private donors were silently backing this agreement too?

Second, whose the more the idiot, Krause or Prince's attorneys? Sounds like someone or everyone was betting on the come.

[snuffy]

K-State assistant attorney reserves company name similar to one in so-called “secret” agreement
By JEFFREY MARTIN
The Kansas City Star
Related:

* Read the deal between Krause and Prince | .pdf
* Read K-State's lawsuit | .pdf
http://www.kansascity.com/sports/story/1210858.html


If a lawsuit wasn’t a strong enough signal that Kansas State University officials think they shouldn’t be liable for a $3.2 million payout to former football coach Ron Prince, Thursday’s events served notice this might be a war waged on technicalities.

A K-State assistant attorney has reserved a company name similar to the one named in the so-called “secret” revealed Wednesday between Prince and former athletic director Bob Krause. Thursday morning, Peter Paukstelis registered the limited liability company “In Pursuit of Perfection,” for $30 with the Kansas Department of Revenue.

“I really can’t talk about that,” Paukstelis said Thursday when reached by phone.

In Pursuit of Perfection, LLC, is the company named in the memorandum of understanding that Krause and Prince signed on Aug. 7. That document outlined payments that K-State’s Intercollegiate Athletic Council, with Krause’s signature, agreed to pay In Pursuit of Perfection, LLC, which Prince signed for.

However, Prince formed a company with a different name, IPP, LLC, with the revenue department on Dec. 23. In the agreement with Krause, In Pursuit of Perfection, LLC, is the company named, but it is later referred to as simply “IPP.”

K-State filed a lawsuit Wednesday in Riley County District Court seeking to invalidate the contract, arguing it was a “secret” deal that was negotiated only through Krause and that Prince’s company did not exist when the agreement was signed. Now Paukstelis’ move to create the company Thursday creates more questions.

In particular, whether the contract is binding if the LLC wasn’t even in existence at the time of the signing, and if the contract is binding, who wins? Who receives the payments? Prince’s IPP or K-State’s In Pursuit of Perfection?

“It’s certainly the stuff lawsuits are made of,” said Linda Parks, a managing partner with the Wichita law firm of Hite, Fanning & Honeyman. “Even if (K-State) didn’t have a contract with an entity (in place), it seems (Prince) is going to have a good argument that they have an agreement with him.”

Parks said she wasn’t a sports fan and she knew little of the case in question, but this all sounded somewhat familiar.

“Whether they have an argument that (Krause) wasn’t authorized (to make a deal), now that’s a better argument,” she said. “There is apparent authority — apparently, he had the authority. If he had apparent authority, then the other party can rely on it.

“There are lots of arguments over apparent authority.”

It’s going to be difficult moving forward, Parks warned.

“There is a lot of gray area in this,” she said. “Mistakes were made on both sides. It’s not black and white, not cut and dried. When everything is fleshed out, it may be something that as a matter of law the court can rule on, as opposed to ‘he said, she said.’ ”

She paused.

“But it also looks like a case that will probably be settled.”

[snuffy]

Disgusted Kansas State football donors threaten to stop giving

http://sportsillustrated.cnn.com/2009/football/ncaa/05/22/KansasState.Prince.ap/index.html
.
AP

KANSAS CITY, Mo. (AP) -- Many Kansas State donors are so disgusted over the secret agreement to funnel more than $3 million to fired football coach Ron Prince they're closing their checkbooks and vowing, "No more."

When Jon Wefald revealed the shocking news to the state Board of Regents on Wednesday, the longtime Kansas State president actually teared up.

As shamed and humiliated as the Wildcats were in the late 1970s when NCAA sleuths caught them hiding 30 football players who weren't supposed to be on scholarship, this may be worse. Now they're reeling over what appears to be a secret sweetheart agreement that former athletic director and longtime Wefald sidekick Bob Krause entered into with Prince.

Discovered by accident this month by university lawyers, the agreement says the school must pay a limited liability company established by Prince $3.2 million starting in 2015. That would be in addition to the $1.2 million buyout he already received after being dismissed last November with a 17-20 record.

It'll be up to the courts to decide how much money, if any, is paid. But there's no doubt incoming president Kirk Schulz and incoming athletic director John Currie have a gigantic problem staring them in the face.

"K-Staters are very surprised and very sad," said Dan Lykins, a prominent Topeka attorney and Kansas State grad. "We're in a mess."

Wefald, who retires next month after 23 years, says he didn't know anything about the agreement until it was accidentally discovered. The university filed suit seeking to escape liability earlier this week, and Krause, who worked with Wefald for 30 years, resigned that day from the position he'd held after stepping down earlier as athletic director.

On Thursday, the university reserved with the state revenue department a company name almost identical to the one Prince used in setting up the company that's supposed to get the money, no doubt a legal maneuver meant to aid their lawsuit.

Prince is now an assistant coach at Virginia and sent word again Friday that he had no comment.

Currie, who was introduced Monday as Kansas State's new AD, did not fly blindly into the storm.

"I was made aware of the situation during the process," he told The Associated Press on Friday. "Beyond that, I can't comment on any pending legal matter."

Currie also sent an e-mail Friday to every athletic department staff member.

"I told them to stay positive. We can't do anything about what happened before," he said. "All we can do is focus on moving forward."

The campus in Manhattan, Kan., is abuzz with speculation over who else might be involved. And why would Krause go behind the back of his boss and longtime friend to funnel more than $3 million to Prince? Was he going to benefit somehow?

Few men are closer than Krause to what Lykins refers to as the Kansas State family. His father-in-law, Jack Vanier, is a huge benefactor and one of the richest men in the state.

"Why in the world would Bob do this?" said Lykins. "It's not like he's a poor man. That's what I would like to ask Bob some day -- `Why in the world did you do this?"'

Prince's name is the only one that appears on the legal document establishing the limited liability company. As filed with the department of revenue, it states:

"The purpose for which the company is organized is to engage in the business of football coaching services and for all such other and further purposes as may be lawfully pursued and are authorized under the act."

As they go about repairing the damage, Currie and Schulz might actually be helped by having no past ties whatsoever to Kansas State.

"They're not bringing any laundry into the mix," said Lykins, a member of the nine-person Kansas Board of Regents. "I think they'll be able to get things worked out a lot quicker and a lot cleaner than somebody who had K-State ties. They both understand we need to make sure problems like this never, ever happen again."

Lykins said he's spoken with many fellow K-Staters who say their donations have stopped.

"But I also talk to K-Staters who tell me they will still give," he said.

People close to Wefald say he has been personally devastated by the actions of a friend and confidant.

"We all have people we trust," said Lykins. "Jon had complete trust in Bob Krause.

"He is very sad. He loves K-State almost as much as he loves his family. It's like somebody punched him in the stomach and he's having trouble breathing."

[legelegel]

The tears of the KSU President should be for the stupidity, not the breach of trust.

How much was Prince legally owed under his contract if he was fired without cause?

I don't remember this episode in Cat history. How do you hide 30 players?

As shamed and humiliated as the Wildcats were in the late 1970s when NCAA sleuths caught them hiding 30 football players who weren't supposed to be on scholarship, this may be worse.