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Archive for Thursday, June 10, 2010

Company saw sales to athletic department increase after installing equipment in Perkins’ home

June 10, 2010, 4:08 p.m. Updated June 10, 2010, 10:16 p.m.

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A medical equipment company at the heart of the controversy surrounding Lew Perkins’ use of $15,000 worth of exercise equipment saw its sales to the athletic department increase significantly after the equipment was installed in Perkins’ home.

According to Kansas University Athletic Department records, Medical Outfitters and its parent company saw its sales to KU Athletics increase by more than $200,000 after it installed exercise equipment in the home of Perkins to use free of charge.

In 2004, Bi-State Medical Technologies — which was an affiliated company of Medical Outfitters — sold $1,441 worth of equipment to KU Athletics. Medical Outfitters had made no sales. In 2005, when the equipment reportedly was installed in Perkins’ home, sales to Bi-State Medical Technologies increased to $28,843. In 2006, Medical Outfitters made $73,350 in sales, and Bi-State made $5,305. Then in 2007 — just before Medical Outfitters filed for bankruptcy — sales to Medical Outfitters jumped to $296,809.

The Journal-World obtained the sales documents through a Kansas Open Records request, and received the documents Thursday afternoon.

Mark Glass, who had been a co-owner of Medical Outfitters, has said the company did not provide the equipment to Perkins with the expectation that Medical Outfitters would receive anything in return.

“I don’t feel like I got any favors,” Glass said Thursday.

The Journal-World interviewed Glass prior to receiving the sales documents from KU Athletics on Thursday. An attempt to reach Glass after the Journal-World obtained the documents was not immediately successful.

The Journal-World sought records showing payments to Medical Outfitters and Bi-State Medical Technologies from Jan. 1, 2004, to June 1, 2010. It is not known how much business Bi-State or Medical Outfitters did with KU Athletics prior to 2004, but Glass said the company did have a long-standing relationship with KU Athletics.

When reached late Thursday, KU Athletics spokesman Jim Marchiony declined to comment on the issue.

KU Chancellor Bernadette Gray-Little said during a Thursday afternoon news conference that she had only recently become aware of the increase in KU business for Medical Outfitters.

“Whether it constitutes a conflict of interest depends on the reason for the spike in business,” Gray-Little said. “That occurred during a time of expansion in athletics, and that there might have been need for more equipment and services would not be unusual.”

Journal-World reporter Mark Fagan contributed.

Comments

ontheroadfitness 4 years, 6 months ago

I would LOVE some free exercise equipment!

hawkman8950 4 years, 6 months ago

Finally one time where Mouthpiece Marchiony has nothing to say?! Wow

Frank Hays 4 years, 6 months ago

Can you spell quid pro quo? Hope the Feds are firing up their investigators as well as a prison cell. This guy (who killed football at Wichita State - yeah, remember that!) has been most destructive to our program. Have there een good times under his watch (yes!) but the bad far outweighs the good. And on the day that our conference is impoding - ARMAGEDDON for our Athletic department. Honesty and integrity are out the window!

Phillbert 4 years, 6 months ago

Wow, that must have been some sweetheart deal since it allowed the company to...go bankrupt.

Frank Hays 4 years, 6 months ago

Philbert, not the point - without Lew they may have went bankrupt two years earlier! How many more little "deals" has Lew put together for him and his family. We will probably never know.

Frank Hays 4 years, 6 months ago

Mangino must be laughing all the way to the bank (and to Florida!) Of course, we know that Mangino was never a recipient of any exercise equipment - instant doughnut maker maybe, treadmill, no way!

Kam_Fong_as_Chin_Ho 4 years, 6 months ago

Wow! You mean he actually tried out the equipment before buying it for the department? How scandalous! (Rolls eyes)

Let's try to find some real news, guys.

puddleglum 4 years, 6 months ago

yeah, nothing to see here folks, move along...move along

Scott Overfield 4 years, 6 months ago

Shouldn't KU's investigation uncovered this?

yankeevet 4 years, 6 months ago

So; nothing happens too him? He just hangs around for another year; then retires??? Will the crooks who worked under him; will they face charges; or just leave the area??

Beelzebub 4 years, 6 months ago

$4 million in salary and perks in 2009, $2 million retention bonus, $600 thousand bonus for staying around to collect it....the ticket scam which happened on his watch...free stuff from companies his department does business with...meanwhile academic departments have had their budgets cut, positions have been cut, blah, blah blah. This is totally screwed up. This one guy has become a multi-millionaire while the rest of the university has to do without. And just what is the benefit that the university gets from big time collegiate athletics? I thought their mission was to educate people. Okay so here's the lesson: education is bunk, kids, the real way to get ahead is to become a part of an organization whose main purpose is entertainment and generating piles of money for people in that organization. "Proud of their academic and athletic achievemen..." Bulls--t.

just_another_bozo_on_this_bus 4 years, 6 months ago

So, if they went bankrupt after the sale of equipment to KU, I wonder if suppliers to Medical Outfitters got paid for what they supplied MO, and then in turn to KU, or if they got pennies on the dollar in the bankruptcy.

domino 4 years, 6 months ago

Have known Mark Glass for the better part of 20 years - if he says he didn't get any favors, I'll take his word for it. I don't, however, know the people in KUAC and with all the BS going on at this point, I wouldn't take their word for much of anything!

BigPrune 4 years, 6 months ago

Did all the ka-ka hit the fan because of that developer singing like a canary trying to get off the hook or what?

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