Wednesday, September 6, 2000 - The Michigan Daily - New Student Edition- 3t
*AN
ATHLETIC
DEPARTMENT IN TURMOIL
More NCAA violations could be on their way as a
result of a scandal that still haunts 'M' basketball
By Mark Francescutti
Daily Sports Editor
Ed Martin could continue to
haunt Michigan basketball in a new
millennium.
The banned basketball booster gave
several Michigan basketball players
improper benefits such as cars and cash
according to a variety of sources.
A 1997 Kansas City law firm investi-
gation revealed what the NCAA would
classify as two minor violations.
But minor didn't explain the changes
at Michigan, as head coach Steve Fisher
was fired and soon replaced with Brian
El lerbe.
Fhe nightmare brought recruiting to a
halt, which then spawned a 12-19 1998-
99 record. Several coaches have said
that the inability to recruit in-state led to
Michigan State's resurgence, garnering
several key in-state players.
The years following the 1997 investi-
gation of the basketball program have
been witness to continuing allegations
of major cash payments made by Martin
to former players, but no allegations
could be substantiated.
Martin and his son face serious feder-
al charges for their alleged involvement
with a gambling ring at metro Detroit
auto plants.
Several players - Louis Bullock,
Robert Traylor, Maurice Taylor, Jalen
Rose and Chris Webber have been sub-
poenaed to appear in front of a federal
grand jury. Their unreleased testimony
could reveal important facts to the gam-
bling case, as well as detailed evidence
that Martin gave improper benefits to
other players.
Martin had agreed in March to tell all
about his relationship with former
Michigan players, under a plea agree-
ment with the US District Attorney.
Martin would have then received a
reduced sentence for the gambling and
tax evasion charges.
With Martin and his son denying the
plea agreement and taking their chances
at a trial, the US District Attorney's
Office says that it will work strenuously
to investigate and punish the Martins to
the fullest extent of the law. The US
District Attorney will now try to get
indictments against the Martins through
the grand jury. They could face up to
five years in prison and a S250.000 fine
on each count.
If testimorny is released and beckoned
to the NCAA, it could seriously endan-
ger the Michigan basketball program.
More NCAA violations could damage
the program if the truth shows tha
Michigan staff knew about the pay-
ments and improper benefits.
While the NCAA currently has a
four-year statute of limitations on most
cases, representative Jane Jankowski
says that in some "extreme" cases, the
limit is extended
MARJORIE MARSHALL/Daily
Michigan coach Brian Ellerbe and the Michigan basketball program are still
plagued by the Ed Martin case. More NCAA penalties are not out of the question.
*Department
bud et in the
red 3 million
1y Mark Francescutti
Daily Sports Editor
The University Athletic Department may be heading into
more red ink, facing a projected budget deficit of up to S3
million.
Outgoing Athletic Director Tom Goss, who resigned last
month, projected an 5880,000 surplus this past summer.
The main culprit in the unexpected loss is a fallout in a
five-year S6.5 million-dollar contract with TSNLLC, a Holt,
VWich.-based broadcast distributor. The contract, signed three
years ago, officially began in Julv 1998.
".The company served as a middleman between Detroit-
based radio station WJR and the University, finding advertis-
ers for WJR's broadcasts of Michigan basketball and football.
The contract detailed that WJR would exclusively hold
'the rights of Michigan football and men's basketball
games, while TSN .dealt with advertising and affiliate
responsibilities.
The University and WJR terminated the contract in.
February.
The University stands to lose the S800,000 owed to it from
he past season of the contract and the S1.2 million balance
still due this year, totaling S2 million.
The Daily learned that TSN was insolvent and facing
bankruptcy, which resulted in the company's inability to pay
the University.
University General Counsel Marvin Krislov said the Uni-
versity first found out about the company's inability to meet
contract payments in the summer of 1999. Kasdin said the
University did not terminate its contract immediately, and
tried to work with the firm to recover the funds.
"We had discussions with them to try to figure out a way:
asdin said. "But it became clear that they could not restruc-
ture in time."
The company made one payment to the University of
$100,000 this year on a SI.3 million yearly balance. The Uni-
versity and WJR terminated their contract with TSN in Feb-
ruary.
The company previously owed the University S800,000,
making the latest balance S2 million.
TSN President Will Tiernan has not commented on the
contract.
The company's insolvency could make it extremely diffi-
ult for the Athletic Department to regain any of the owed
ands, as other creditors have first crack at any leftover funds.
The University will try to recover the funds by selling
advertisements through the Michigan Marketing Depart-
ment. The rest of the department's newly projected losses
stem from a decline in alumni gifts and licensing revenues,
which could bring the total loss to almost S3 million.
According to the department's financial statements, gifts
compose up to S3.3 million of the department's 547.6 million
budget.
Goss was not involved in the original contract. It was
*gned during the tenure of former Athletic Director Joe
Roberson.
But Goss was involved in the decision this summer to keep
talks alive with the struggling company for at least six
months.
Kasdin confirmed that one reason why the Athletic
Department opted with TSN and disregard the payment
troubles was an effort by the department to retain the cur-
rent slate of advertisers because football season was draw-
ing near
Sources also said that it is highly unusual to see a third
arty like TSN handle the advertising and affiliates. Usually
ividual radio stations cover those areas.
They also said that many members of the athletic
department felt frustrated with the fact that so many cost-
cutting measures have been neutralized by a factor outside
of its control.
. .
Messy
Transition
Goss forced out as
r athletic director
By Jeannie Baumann
and David Den Herder
Daily Staff Reporters
University President Lee Bollinger
officially accepted the resignation of
Athletic Director Tom Goss in Febru-
ary, after appointing him in September
1997.
"Every decision that I have made in
the past 29 months was made from the
heart and in the best interest of the
University of Michigan and its stu-
dent-athletes," said Goss, who left
office at the end of the winter athletic
season in March.
"Not everything has been accom-
plished, but a pathway has been char-
tered for the next athletic director,"
Goss said.
Bollinger said the resignation came
after much deliberation.
"This is a decision Tom and I have
arrived at that goes back over many
months and over many discussions,"
Bollinger said. "It is far too complex
for any kind of simple statement. This
is the right decision for the University."
Bollinger refused to give the
specifics behind the athletic director's
departure.
But as Goss addressed his future
options, he mentioned the abruptness
of this development.
"I really haven't had the time to
really consider (my options)," Goss
said. "This just happened real quick."
Bollinger then said the months of
discussion pertained to the future of
the athletic department and not specifi-
cally to Goss' tenure at the University.
Sources within the Athletic Depart-
ment told the Daily that they believe
the President's office is trying to
"takeover" the department.
Bollinger denied any such takeover
attempt.
"I've saic from the beginning that
one of the things I would not do is run
the Athletic Department,"
Bollinger said. "It's simply not the role
of the president of the University."
Bollinger said he recognized the
importance of deferring "in most
instances to the judgements of indi-
vidual departments."
But at the same time, he stressed
the need for administrative participa-
tion in certain matters to allow for a,
collective decision-making approach.
A source said the NCAA's recent
investigation of Jamal Crawford's eligi-
bility - and Bollinger's unawareness .
of it - was a factor in Goss' departure:
"You can take any of the issues that
have been raised in the media over the
past two or three years. Every single
one of those issues has been a collec-
tive effort on the pact of the athletic
department and on the part of the
administration,",Bollinger said. "Take
any of those issues, and you have Uni-
versity involvement.
FILE PHOTO
Tom Goss, shown here with President Lee Bollinger, was forced to resign as Athletic Director in February.
Martin takes over in teriin job,
deals with basketball issues
By Mark Francescutti
Da),ily Sports Editor
University alum and Ann Arbor resident Bill
Martin will serve as the University's interim ath-
letic director as former athletic director Tom
oss resigned at the end of February.
University President Lee Bollinger said that a
permanent new athletic director would be found
as soon as September.
Martin came into power at a turbulent time in
the history of the Athletic Department. But he
has handled his new job with a smile and a calm
demeanor.
Martin made a strong effort to meet every
Michigan coach and captain right off the bat,
and not just from the football team.
The interim athletic director also calmly
brought the media in his office to halt rumors
about the basketball program and announce that
Brian Ellerbe will remain as coach.
Nike contract issues, the Ed Martin saga, and
a S3 million budget deficit have squeezed all the
time out of Martin, who is known to work 12
hour days.
Martin is the president of First Martin Corp.,
an Ann Arbor real estate development company,
and the founder and chairman of the board for
the Bank of Ann Arbor. He is also on the Board
of Directors for the U.S. Olympic Committee
and president of the United States Sailing Foun-
dation.
"Anything I can do to help the University of
Michigan, I'm happy to do it," Martin said. "I
learned a profession here, I met my wife through
here and I learned to sail here. It's just payback.
"Quite frankly, I'm surprised (Bollinger)
asked me," Martin said.
Bolhinger said Martin's financial and business
background combined with his experience in
amateur sports makes him a perfect candidate
for this position.
Despite his possible short tenure, Martin has
already announced plans to reorganize the foot-
ball ticket system and expand Yost Ice Arena,
among numerous other ideas.
MARJORIE MARSHALL/Daily
ector Bill Martin has earned praise for the time he
incerns of coaches, players and staff.
ne more year
departnient will help offset the loss.
The University has been in contact with Adidafj
Reebok and Puma since Nike broke off renegotia'
tions for contracts after next year.
Nike's dominance over the athletic apparel indus
try is widely accepted.
But its labor practices have not been.
Michigan interim athletic dir
has spent listening to the co
'M'l
By Raphael G
Daily Sports int
will stick to swoosh for or
oodstein
er
vs. Nike
Future business relations between Michigan and
Nike remain questionable, but Michigan players
will wear the swoosh for at least one more year.
In May, the two sides broke off contract negotia -
Il .,
I MEMPRIEW", TNEROKi Lf 1