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Archive for Friday, May 28, 2010

KU scandal prompts universities to look at ticket rules

May 28, 2010

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— Athletic departments around the country are taking a close look at their ticket policies now that Kansas University admitted losing at least $1 million in an alleged scalping scheme run by a handful of school employees.

"We believe we have strong safeguards and systems in place," Michigan athletic director Dave Brandon said Thursday. "But we certainly will review the situation in Kansas to see if we can learn anything."

According to an independent investigation commissioned by KU, five Kansas athletic department employees and one consultant conspired to acquire tickets to always sold-out Allen Fieldhouse, sold them and pocketed the money. Counting a lesser number of football tickets and parking permits, the scam involved nearly 20,000 tickets altogether from 2005-2010.

The now-former employees, including some top lieutenants of embattled athletic director Lew Perkins, may face charges since Kansas officials have sent the details of their investigation to federal authorities. The investigation estimated the loss to Kansas at slightly more than $1 million. But that figure, once the full scale of the scam is uncovered, could triple.

Ohio State athletic director Gene Smith told The Associated Press said ticket procedures were discussed Wednesday as the Kansas allegations were hitting the headlines and the group said: "Let's go back through, let's just make sure we don't have anything that we think is an issue.

"We went through an audit last year and we'll go through another one next year," he said. "We're pretty confident with our audits. But one of the challenges we have is that once tickets leave us, we don't know where they go."

Oklahoma, which once employed some of the dismissed Kansas officials, also said it was reviewing ticket procedures. The University of Washington just finished doing so.

"Ironically, I had a meeting the day before yesterday with the internal auditors about our program and how we do things," Washington athletic director Scott Woodward said. "We have great internal auditing and good checks and balances. But as you can see, the best-laid plans can go (awry) when you have severe criminal activity involved."

Texas athletic director DeLoss Dodds said he was confident the Longhorns had nothing to fear.

"For decades, Texas has had internal controls in place in our athletics ticket operation and in our Longhorn Foundation fundraising," he said. "And in my years as men's athletics director here, we have invited auditors to regularly review our ticket sales and distribution systems and policies. We also have two full-time risk managers on staff who continuously review how we do business."

Still, Perkins said he's heard from "a multitude of sports organizations."

"This is not just at the college level," he said. "Others have called me and said, 'What should we look for?' When this is over, we're going to be better and stronger and we're going to be able to help other people."

The revelations triggered a stern response on Thursday from Gov. Mark Parkinson.

"The news about criminal activity within KU athletics is disturbing and absolutely unacceptable," Parkinson said. "I am glad to see chancellor (Bernadette) Gray-Little and the Board of Regents taking this egregious matter seriously. I know they will hold people accountable and ensure that nothing like this ever happens again."

Meanwhile, Kansas fans were lining up on either side of another issue — should Perkins be fired?

Since he arrived in 2003, the Jayhawks have enjoyed their greatest growth and on-field success. A 40-year veteran of athletic administration, he was called he top executive in college sports by Time magazine just two years ago.

"I'm not quitting," Perkins said. "I don't see myself going anywhere. I have a job ahead of me. It's my job to clean it up and get us back into the right frame of mind and move forward. There's always doubters out there and I respect their feelings."

The betrayal by his employees, Perkins said, was "like somebody took a hot poker and stuck it in my heart."

Perkins angered many fans by putting in a points system where tickets and seating are basically allotted on the size of donations. The controversial system raised millions, but after this week some donors suspect they did not get proper credit for their contributions.

"I don't see how a person making $900,000 a year and getting obscene bonuses could not know what was going on right there in his own department," said Fred LaMar, a retired business executive in Olathe, and longtime donor.

But coming to Perkins' defense was the most influential booster in the Jayhawk family, California developer Dana Anderson. A 1959 Kansas graduate in whose honor the new football facility is named, Anderson does not want Perkins to go. And his opinion may count. When Kansas played UCLA last year, the chancellor stayed at his home and sat with him at the game.

"Lew has changed the economics of KU's athletic department dramatically. He did some things that everybody else had avoided," Anderson said.

Anderson acknowledged receiving calls from angry alumni who want him to call for Perkins to go.

"A lot of people have bruised feelings and questions have been raised," he said. "But ... I do not think this is grounds for termination."

Comments

Paul R Getto 3 years, 10 months ago

"This goes on in a heck of a lot of schools that have a strong athletic tradition, be it basketball or football. And it has been ongoing for eons. This is nothing new. It is just new that folks are starting to get pinched " ==== Good points. There is no excuse for the KU mess, but I bet all the high-profile programs are waiting for the FBI and IRS to ask them similar questions. Basic economics suggests when demand exceeds supply, weak greedy individuals are capable of pulling these scams with tickets. Back in the day, the joke was, "Someone broke into my car; there were two KU footbal tickets on the seat. When I returned and noticed the broken passenger side window, I saw there were four tickets on the passenger seat."

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gl0ck0wn3r 3 years, 10 months ago

I hear Charlette's husband is available for about $100k to do some consulting for schools.

Anyone with Paciolan and a hands-off management style is vulnerable to this sort of scam. That covers about 90% of the colleges. Even the report could only hint at the management problems that system creates or - at a minimum - allows.

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toe 3 years, 10 months ago

I always said is was the money (donors) that were running the program and Lew was their inside man. Collete athletics is a suckers game and their are a lot of suckers. Just watch the stands instead of the game for the real competition of college sports.

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tophawk87 3 years, 10 months ago

If the Chancellor doesn't have the moxie to fire Lew Perkins, then the Board of Regents will have to step in and clean up this mess. No wonder they tried to announce this before Memorial Day, when all the professors were on break, trying to minimize the damage. Really sad that the Kansas University Athletic Corporation and some basketball ticket "hustlers" are making hundreds of thousands of dollars and the professors this year got NO RAISES...

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1983Hawk 3 years, 10 months ago

Castiglione and the boys in Norman may be sending out for clean underwear soon. I love the statement they released yesterday:

"The University of Oklahoma’s ticket operation is reviewed annually by an external auditing firm and also is subjected to routine internal audits conducted by the university’s internal auditing office to protect the integrity of the process."

Hey, Joe, guess what? So was ours, even after many of the perps showed up here from Norman ...

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g_rock 3 years, 10 months ago

This goes on in a heck of a lot of schools that have a strong athletic tradition, be it basketball or football. And it has been ongoing for eons. This is nothing new. It is just new that folks are starting to get pinched.

I'm not saying that it is right. But it is too bad that KU is the one that had to be made an example of. Imagine the conversations and paper shredding going on thousands of athletic departments across the nation at this second...

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guesswho 3 years, 10 months ago

dubstep - I think that is how their jobs are supposed to be structured - Marchiony is the spokesperson (think press secretary?) and Perkins does the decision making.

Yes, Lew has brought in lots of money and focused everything on $$$...but that is the reality. Without money and new facilities, we wouldn't get good recruits. Some of that money (not enough, IMHO) is spent on the non-revenue sports and improving their conditions.

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dubstep 3 years, 10 months ago

Lew has long seemed out of touch with the operations. Marchiony is the only one from the Athletic Dept. the paper ever quotes, and Lew's job seems to be centered on fundraising.

"I accept responsibility. I do not accept responsibility for criminal actions" ----- Whaaaat???

I was glad I got to walk down the hill before we had a bunch of football crap ruining the view. And I was glad I used to get to use the parking lots near the stadium for class before they tore half of that up for football as well.

"swagger" equals money.... but the man got bill self (and a championship)

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consumer1 3 years, 10 months ago

I used to be a lew hater. But, recently I have seen some of the effects that have happened since he took over. Regardless of that though, he has done exactly what the University hired him to do. So, I think if we talk about who to blame, it falls square on the shoulders of the University former chancellor Heminway. He cut and run just in time. One thing lew has done, is complete a study area complete with tutors for the student athletes. So, you gotta at least give him that. This whole scandal make dig up some more worms, but, I believe Lew is just doing what he was told to do. He has met his objectives, given to him by the University. True, he has upset many of the loyal fans by restructuring the seating at the Phog. again, another directive of the University. So, How can you honestly blame the man for doing his job so well?

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senegal66025 3 years, 10 months ago

Clean house from top to bottom.

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jj14 3 years, 10 months ago

The only thing that matters at KU Athletics is $, it's so sad. Not how it used to be. Ethics have gone out the window since Perkins took over. As long as the $ is rolling in, they couldn't care less about anything else. Screw the fans that held their AFH seats for decades, screw the football players being degraded day in and day out by their coach, screw academics, screw everything as long as you don't get caught. HOW SAD

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ralphralph 3 years, 10 months ago

derrrrr ..... ya' think?

Tip: Bring in Lew as a consultant on how to make money the sole focus of your sports program, casting aside loyal fans in favor of big bucks and corruption.

Top Kill. Fire Lew.

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