Top College News Subscribe to the Newsletter

Breaking it down: ‘Tattoo-Gate’ scandal costs Ohio State almost $8M

bradley.321@osu.edu

Published: Monday, June 4, 2012

Updated: Saturday, June 16, 2012 01:06

Adding up Haynes, Hazell, Johnson, Peterson, Siciliano, Lichter, Sutton and Dick Tressel’s last available salary — and Fickell’s 2010 salary — you get $1,877,119 per year.

Adding up Coombs, Drayton, Hinton, Zach Smith, Vrabel, Marotti, Pantoni and Voltolini 2012 salaries, you get $1,870,000 per year.

A difference of $1,262,881 per year across all assistant coaches.

Assuming sans-scandal staff turnover would have been minimal, the additional cost of assistant coaches for the period remaining on Jim Tressel’s contract — through the 2015 season — is $3,788,643.

Attorney costs for players - $230,980.06

When news broke of the compliance issues in December 2010, and continuing issues persisted through November 2011, the university sought legal representation for the players involved in the “Tattoo-Gate” scandal.

Jim Lynch, university spokesman, said the university hired two firms for these players. Vorys, Sater, Seymour & Pease and Crabbe, Brown & James.

“NCAA rules allow the university to secure legal representation for student-athletes when their eligibility is in question,” Lynch told The Lantern.

The university paid $29,499.85 to Vorys, Sater, Seymour & Pease, and paid $201,480.21 to Crabbe, Brown & James.

NCAA investigation consulting - $1,408,184.07

Again, when news of the scandal broke in December 2010, the university sought the assistance of three firms shortly after to assist in compliance, legal affairs and communications.

The university hired The Compliance Group, based in Lenexa, Kan., “provides an array of quality and cost-effective compliance services to intercollegiate athletics departments and conference offices.”

The total cost of hiring The Compliance Group was $282,840.27.

“(The university) sought the counsel of The Compliance Group, who has strong expertise in NCAA compliance issues. The company has worked closely with the university since January 2011,” Lynch said.

The university also hired Kekst and Company, based in New York, which is “a leading strategic, corporate and financial communications firm.”

“Given the nature of this issue, the university sought communications counsel to assist in its efforts to manage ongoing communications on this matter. The company has worked with the university since mid-March (2011),” Lynch said.

The total cost of hiring Kekst and Company was $617,415.92.

And finally, the university hired FTI Consulting, Inc., a worldwide consulting firm that defines itself as a “global business advisory firm that provides multidisciplinary solutions to complex challenges and opportunities.”

“FTI, which is experienced in complex investigations, served as a consultant to the Office of Legal Affairs concerning the NCAA investigation,” Lynch said.

The total cost of hiring FTI Consulting, Inc., was $507,927.88.

Between these three firms, the total comes to $1,408,184.07.

Compliance revamp - $506,950

Because all violations and cover ups committed are a failure in the athletic compliance department, the Board of Trustees are creating the Office of University Compliance and Integrity.

While the office has not yet been created, the Board of Trustees spent months on an internal review, advising and research totaling $506,950.

The Audit and Compliance Committee hired two outside consultants for a review of the compliance of the university. The committee hired Protiviti, a business-consulting firm from Menlo Park, Calif., for $226,950, according to the Office of Business and Finance.

The committee also hired a New York-based law firm, Dewey and LeBoeuf. Leslie Flesch, associate vice president in the Office of Business and Finance said payment is expected to be $280,000.

Audit and Compliance Committee chairman Robert Schottenstein said in a July 2011 meeting this was an opportunity to improve on all levels of compliance.

“This process, which we fully embrace as an opportunity to get better, was actually triggered by the problems in our football program that first surfaced late (2010),” Schottenstein said.

President E. Gordon Gee said the athletic compliance issues were the most public, but the athletic compliance is a small part of university compliance.

“The compliance in athletics is more public perception. If you spend a certain amount of your budget on athletics and it gets 90 percent of the airtime. So it’s a perception that you want to get that right. … The notion of having a centralized compliance system is that we have a filter that is constantly looking at our overall compliance,” Gee told The Lantern on Feb. 6.

Although the need for the OUCI was in response to a public failure in athletic compliance involving the scandal, the office will deal with university-wide compliance issues.

Geoff Chatas, the university’s chief financial officer, said the original plan was to hire one consulting firm for the project, but upon further review, the decision was made to hire two firms.

“It became quite clear when we looked at the task at hand — which is looking at the organization of compliance, the process of compliance and then the legal process around compliance — that we needed two areas of expertise,” Chatas said at a September Board of Trustees meeting.

This again, is just the cost of consulting for the OUCI, and additional costs will surface when the office is created.

Sugar Bowl vacated and future bowl vacated - about $740,000

Because of the scandal, OSU forfeited its share of the Big Ten’s payment for playing in the 2011 Sugar Bowl.

OSU vacated the entire 2010 season, including the Sugar Bowl. Meaning the $388,811 that comes with participation in the Sugar Bowl is gone.

Recommended: Articles that may interest you

15 comments

Anonymous
Wed Dec 26 2012 13:14
HEY DUDE ABOVE TALKING ABOUT THGE FANS ARE TALKING ABOUT OSU GOING UNDEFEATED FOR 2012 AND U NVR THOUGHTR THEY COULD DO IT,,,,WELL THEY DID A SHOYULD BE PLAYING IN THE BCS NATIONAL CHAMPIONSHIP GAME VS NOTRE GAME,,,,WAIT TILL NXT YR THEY WILL BE JUST AS GOOD ..ONLY LOSE 2 STARTERS ON OFFENSE, BUT 6 OR 7 ON DEFENSE, BUT URBAN DID SOME GREAT RECRUTING TO FILL THE HOLES,,,BUCKS WILL BE BACK IN 13 OR 14 IN BCS TITLE GAME
Anonymous
Sat Jul 14 2012 07:56
I get the whole "how many scholarships to poor students could they have paid for" argument, but come on, sports are a business. It sounds harsh, but they should have, what, said, "eh, let's take all this money attached to this scandal and shoot charity rainbows at underprivileged students"--that's not reality. Ok, aside from the dollar-fallout: to me, having been a non-scholarship, but successful, college athlete, my heart goes out to the hard-working linemen who spent three years in the weight room prepping for their senior year and the defensive backs who worked through injuries at the hope of having his talent put him in a position to make a name for himself in a BIG game only to have those bowl and Big10 Championship games banned for their senior year. None of the people who actually did anything really got punished: "all the players involved in the NCAA investigation [have] either graduated, drafted or departed from the university". So...the punishment of the ban...is...for whom again? So fine, they fire Tressel; he's an adult, and the case can be made that he didn't monitor well enough. He'll go get another multi-million dollar contract or fall back on his bank account or crappy book. But what about all the guys who followed the rules; they hang around to help the school's "reputation...[make] a recovery" that they never jeopardized, only worked to uphold, all while losing their chance to earn what they've worked for? That's crap. Figure out a punishment for the people who broke the rules because being a coward and running to the next phase of their lives prematurely doesn't send any type of helpful message; they already proved that they don't care about the school or the people around them with their actions, so how do the banning punishments fit?
Anonymous
Mon Jun 11 2012 12:43
Regardless, I will gladly take Tattoo Gate over the criminal problems that have surfaced at other football powers such as the sex scandal at PSU, the Petrino mess as Arkansas, recent MURDERS at Auburn, player arrests for felony theft, grand larceny, and drugs at UGA, Tennessee, Arkansas, Kentucky, and South Carolina. While TG was a costly episode for TOSU at least no criminal or illegal acts were involved.
Anonymous
Thu Jun 7 2012 15:53
All this for unproven talent. What happens when Urban doesn't live up to the massive expectations of fans. I can't wait to see some of these comments over one or two losses next season. It cracks me up that reporters are talking about OSU going undefeated with a new regime, a new style of play, and mostly unproven talent. That's OSU fans for you though.
Candace Koons
Wed Jun 6 2012 14:43
Mr. Ridenbaugh, Every cost, either high or low, needs to be factored in. The whole situation is obscene and the idea of under paying anyone is more than obscene. Tell that to all our underemployed and unemployed citizens and all those that have no roof over their heads, food in the children's stomach, and no education. Tell that to people that are having their benefits taken away or that senior citizen that paved the way for you that is getting social security and medicare/medicaid reduced. Shame of you. I certainly respect your willingness to not be anonymous.
Anonymous
Tue Jun 5 2012 22:13
How many Scholarships could have been given to poor students instead of paying absurd salaries. Disgusting
Anonymous
Mon Jun 4 2012 19:14
"People kill me with comparing someone's salary to the president of the United States. When we simply underpay the president of the United States. Don't tell me it's a public office blah blah blah..."

Les, is that you, or your puppet Gordon?.

Anonymous
Mon Jun 4 2012 17:01
People kill me with comparing someone's salary to the president of the United States. When we simply underpay the president of the United States. Don't tell me it's a public office blah blah blah.... then do it for free and don't pay them at all.

People get paid as much as the entity is willing to pay, worth pays very little into the equation. That's why a corporation can have a losing year and the CEO still gets a bonus... because they were willing to pay it.

Anonymous
Mon Jun 4 2012 13:39
I think all of the athletes involved should pay this back. Take it out of those big NFL contracts that they want. Pryor set a bad example. You can lie cheat and make your way to the NFL and leave others to clean up mess left behind.
Bill Grant, OSU '61
Mon Jun 4 2012 09:38
What, OSU paid for attorneys representing the players involved in this mess ?? Is that part of their 'grant-in-aid' deal ? If so, than any OSU styudents should be allowed to avail themselevs of the same deal. So sad to think that a substantial portion of this sum could have been used for scholarship for deserving students. And I think that the total cost should also include the almost $ 200,000 @ year salary that Tressel will be paid at the U/Akron as a VP for
"strategic engagement." How many years will he serve in that post ? Double-dipping into the retirement fund.
Shameful.....how these people can face themselves in the mirror every AM is amazing.
Buckguy
Mon Jun 4 2012 08:28
How many National Championships with Urban Meyer will it take to pay this back? 1/2?
Anonymous
Mon Jun 4 2012 08:15
And how much does the program bring into the university?
Anonymous
Mon Jun 4 2012 08:14
Did we pay for Pryor's attorney? Since he ran like the chicken he is, I vote he pay it back.

BTW, I quit donating when I saw (it was years ago and might not still be the case) that anyone taking at least 15 credit hours (without graduating) could be a member of the alumni association - to be this is a slap in the face to those of us who put in the time and tuition for the four year degree.

Anonymous
Mon Jun 4 2012 07:54
We have assistant coaches making more than the salary of the President of the United States, but of course so does our University president and many of his staff. O$U seems quite relevant. I'll not give a dollar more to the alumni fund until this beast is tamed. Janitors make $17000 to start, the president makes 2.2 million and talks about supporting the community. Let's tell it the right way - here at Wexner University we help support the 1% using public and donated funds - the rest of you can eat cake.
David Ridenbaugh
Mon Jun 4 2012 06:04
Nice story, but the costs of the new staff should not be factored in to the total.

OSU was under paying their assistants before.

They are paying market price now.





log out