Secret deal between Rutgers & Schiano
Rutgers football coach Greg Schiano can walk away from his contract without penalty if the university does not complete a major expansion of its stadium by next year, a newspaper reported Wednesday. Schiano’s 10-year contract calls for him to pay $500,000 if he leaves following the 2009 season. However, an addendum to that contract not divulged by Rutgers waives the buyout fee if the construction is not completed on time, The Star-Ledger reported.
The paper reported earlier that Rutgers had guaranteed Schiano $250,000 on top of the $2 million annual contract he signed in February 2007. The extra money was channeled through the Nelligan Sports Marketing firm and does not show up on the school’s books.
Rutgers is being criticized over the lack of disclosure of the various incentives. State Sen. Loretta Weinberg asked the state inspector general and state comptroller to open investigations. “The taxpayers deserve to know the total price tag that comes with the hiring of a prominent and sought-after football coach,” said Weinberg, referring to the side letters as a “covert operation.”
Schiano earned bonuses last year of $50,000 for the Scarlet Knights’ bowl appearance, $100,000 for reaching a ticket sales benchmark and $25,000 for the team’s academic progress rating. The university also sold land to the coach and gave him an $800,000 interest-free loan that is being forgiven at a rate of $100,000 a year while he remains at Rutgers.
McCormick said the school included a stadium clause as an incentive to retain Schiano, who has been courted in recent seasons by college powers Miami and Michigan. The $102 million renovation, which will add 14,000 new seats, is over budget.
University officials say the first phase, adding approximately 1,000 “premium” seats, will be ready by the end of August, but bids for the addition of 13,000 more seats came in $18 million higher than anticipated.
