According to a story in Tuesday’s Star-Ledger, Rutgers made a secret deal with football coach Greg Schiano to pay him $250,000 on top of what he is already earning to coach the football team at the state university of New Jersey.
Here’s an excerpt:
In the addendum to his contract, dated July 2, 2007, Rutgers arranged for Nelligan Sports Marketing, the university’s exclusive marketing agent, to pay the coach the additional $250,000 — keeping the payments off the school’s payroll.
The money was deducted from sponsorship revenues collected on the university’s behalf by the marketing firm, but the amount was guaranteed by Rutgers. It was listed as a payment for “personal services” and was made to a limited liability corporation established by Schiano.
The $250,000 payment was questioned earlier this year by university auditors who criticized the athletic department, saying the way the deal was structured showed a lack of transparency.
Schiano, through a spokesman, declined comment.
Rutgers athletic director Robert Mulcahy said the university was simply “being a little resourceful” in the way it structured the deal. In his view, the sponsorship money used to pay the added compensation was the result of Schiano leading the football team to three straight winning seasons.
