According to WDRB.com, former University of Louisville President James Ramsey quietly gave AD Tom Jurich some $6 million in incentives using nonprofit foundation money.
Here are details from WDRB:
Ramsey executed the deal through the university’s nonprofit foundation on Oct. 30, 2014 – but it’s the athletics association that will have to pay the benefit, according to records obtained by WDRB and U of L officials.
There is no evidence that the athletics association board, nor the board of the foundation, approved the deal. Two then-members of the athletics board said they knew nothing about it.
The agreement entitles Jurich, 60, to receive $3 million in incentive pay if he remains on the job until age 65, and another $3 million if he remains until age 70.
But the awards will likely be much larger than that, however, because the money will be marked up with the same investment returns that the U of L foundation earns for the school’s $715 million endowment — as if Jurich’s $6 million had been invested in the endowment starting July 1, 2014.
To demonstrate the power of compounded investment returns, another U of L administrator — Dr. Donald Miller of the James Graham Brown Cancer Center – saw his deferred compensation grow from $1 million in 2006 to $2.2 million by the time he withdrew it from the foundation in 2016, records show.
The Jurich agreement, while executed by the foundation, states that the intention is for the athletics association to “ultimately” pay for the benefit. Ramsey, by virtue of being U of L’s president, was president of the foundation — and the chairman of the athletics association board – when the deal was signed.
Former UL President Ramsey gave a secret $6 million incentive to Tom Jurich without consulting virtually anyone: https://t.co/YsNcobe1xX
— Matt Jones (@KySportsRadio) February 17, 2017