Posted by ButterBall Devil on March 15, 19 at 15:46:25:
In Reply to: WSJ article posted by Oldtimer on March 15, 19 at 06:59:39:
As a 501(c)(3) entity, the PAC 12 is required to file with the IRS, Form 990, annually. Now - this form allows for the hiding all kinds of issues - but you can find lots of stuff in the supporting schedules. But you have to understand you can't find all of the stuff.
Private inurement, is a sure way to get on the IRS radar, and I would be concerned, if I were involved with the PAC 12, about that issue.
For 2017, total revenue was $509M,
Compensation - reported:
Larry Scott - Commissioner - $4,695,156
Lydia Murphy-Stevens - President - $1,192,189 Neil Davis - Exec VP - Sales - $688,937
Jonathan Leess - Exec VP, Operations - $523,652
Brent Willman - Sr. VP - Finance - $515,874
Woodie Dixon - Gen Counsel/VP Bus Affairs/Replay Booth Idiot - $513,703
Jamie Zaninovich - COO - $509,434
Leon Schweir - Pres, sales admin & partner services - $445,543
Danette Leighton - CMO - $437,673
Ronald McQuate - CFO (though 6/30/17) - $388,759
In addition, each has healthy, 5 figure amounts for "other compensation from the organization and related organizations", which I believe is in addition to the above list.
Although the Bd of Directors established the compensation for Scott, he established the compensation for everybody else. Nice!
$2.3M was spent on the overseas MBB and WVB "all star tours".
Each one of the program schools received approx. $31M.
$6.4M was received as UBTI - unrelated business taxable income, on which the entity paid corporate income taxes. (Too much of this and the IRS might revoke your tax exempt status - sometimes, retroactively.)
The form discloses that "first class or charter travel" is involved, as well as "travel for companions", "tax indemnification and gross up payments", and "housing allowance". Because this applies to "all" directors and officers - i.e., Michael Crow, etc., as well as Larry Scott and all officers and directors are included - who knows who gets what?
Scott received a $1.8M relocation loan. (These are routinely forgiven by organizations at some point.)
I have no problem with compensating persons providing value. But keep in mind - this is a non-profit enterprise, being run by appointed heads of other non-profit or government entities. "Their" lives are based around expanding their base, and growing their pyramids. Not on efficiency, or other measurable performance metrics. the obvious one, is how much in revenue does each school receive, vs. other Power 5 Conferences.
Having a Bd of Directors comprised of 12 university presidents, means no one is really accountable, nor will anyone have incentive to ask tough questions.
None of these individuals have any downside risk nor "skin in the game" of their own. (Can I submit a resume?)
this situation has no "dynamics" in play to ever improve, much less change, short of a national economic recession, where operating revenues simply fall off the table. but even then, I presume the officers listed each have severance packages.
Having thought this through, I think the PAC12 would have been better granting 5 year contracts, from a competitive bid/auction structure, and simply allowing the "professionals" to handle all of the operations, marketing and related decisions, with general policy input being allowed by the Conference.
Bottom line, "Power 5" may make some adjustments and swap Conference USA for the PAC12. Without the funding at the level of the ACC, SEC, Big 10, and Big 12, the PAC 12 won't be able to keep up.
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