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May 18, 2007

Hiding the Money

Filed under: Athletic Department,Coaches,Dixon,Wannstedt — Chas @ 8:28 am

Over at AOL, I wrote about Penn State’s 5-year legal battle with the Harrisburg Patriot-News over the disclosure of how much Joe Paterno makes.

Quick recap: It seems Pennsylvania’s open-records law does not apply to state related schools like Penn State, Pitt and Temple. The law might get changed this year, but in the mean time the newspaper did an end-around by requesting Joe Paterno’s records from the state pension agency — which is subject to the open-records law. Paterno says he doesn’t care, but Penn State does. Penn State went to court to block this. It is now in the state supreme court.
It seems to me like this should be a slam dunk for the newspaper. Of course, this is the Pennsylvania State Supreme Court, and nothing is guaranteed. One of the justices had to recuse herself from hearing or voting on the case because she is also a Penn State Trustee.

Predicting the PA Supreme Court is always a big question mark. [digression] Pennsylvania has long had one of the least transparent government, in part because of the court. In 1998, the court struck down a basic lobbying disclosure act because they ruled that many of the lobbyists were also practicing lawyers and the PA Supreme Court has the only authority to regulate the practice of law. A new law was passed in 2006, but if this sort of attitude from the Philadelphia Bar is any indication, I expect it to go back to the PA Supreme Court — even if it says that the PA Supreme Court is going along with it this time. [/digression]

The State Senate Majority Leader has introduced legislation that would amend the open-records law to include state-related universities. It has a pretty good chance of passing, so the whole lawsuit eventually might mean nothing.
Pitt, while not required to, has been more responsive on the disclosure of salaries front.

The health sciences chief, the football and basketball coach and two other administrators including Chancellor Mark Nordenberg were top earners at the University of Pittsburgh last year, according to a federal tax filing.

Second-highest was head football coach Dave Wannstedt, whose compensation of $713,138 included $675,002 in salary, $28,959 toward benefits and $9,177 for expenses and allowances.

The third-biggest earner was men’s head basketball coach Jamie Dixon, whose total earnings of $676,712 included $622,753 in salary, $38,276 toward benefits and $15,683 for expenses and allowances.

The filing, required of non-profits each year, includes pay earned by officers and non-officers of the university for the fiscal year ending June 30, 2006. It was released yesterday by the university in response to a request from the Pittsburgh Post-Gazette.

This, of course, does not include Dixon and Wannstedt’s radio/TV appearance fees or the money they make from their camps. If the open-records law is passed, that information will also become known.





[…] Pittblather: Open those records. […]


Yeah, how much do you make, Chas?

Seriously though, it amazes me how little play the Paterno salary story gets in Centre County.

My final analysis of the entire situation is, of course and as always, Penn State sucks. And yes, I am wearing my Pitt polo shirt today in the shadow of Old Main. Screw ’em.

Comment by Lee in State College 05.18.07 @ 10:33 am

The mere fact that state penn is so persistent at not wanting to release it makes me all the more interested? what are they hiding?

Comment by Rex 05.18.07 @ 11:10 am

What I don’t understand is this: Pitt and PSU, and a few million other companies across this nation, are “nonprofit 501c3 public charities,” and as such, they are required by law to make available to the public their IRS Form 990 return. That’s how Pitt’s info became public, they had to supply the 990, and it lists the salaries of their top employees. Otherwise, they have said they would not release the information. But for some reason, that I cannot locate anywhere, PSU is “exempt” from publishing theirs, and the only reason I have ever seen for that is if you are a religious orginization under 501c3 – but they’re not, they’re an educational facility.

PSU children want to complain that it is “none of your business” and that they pay high tuition and their school receives no money from the state. What they don’t realize is that their school receives a “nonprofit” status – meaning they pay no tax on their profit, can receive donations tax free, and in exchange they are supposed to be for the public good and be open with their financials in exchage for these benefits. It is a misconception that “nonprofit” mean you can’t make a profit; a more fitting term would be “non-taxed profit.” Not paying MILLIONS in taxes every year IS GETTING FREE MONEY FROM THE STATE. If they don’t want to be open and a nonprofit anymore, by all means, go right ahead. It is bullshit every other 501c3 publishes their entire financials every year and they do not. That is why they should be required to publish the information like EVERY OTHER 501c3 does, not because anyone has it in for PSU.

If you want to see the Form 990s for Pitt, other universities or nonprofits, go to http://www.guidestar.org. It is free to signup, and the Form 990’s are in PDF format. Pitt, CMU, Duquesne (neither of which is even public!) all have 990’s available, but Pennsylvania State University does not.

In recap, I don’t give a shit if they are a public university or not, they are a public charity under the rules THEY CHOSE TO BE GOVERNED BY – and I cannot figure out for the life of me why the don’t have to follow them. No one “has to be” a nonprofit – its actually a long, expensive process to do so. Not showing your records is ridiculous, but I’m getting used to that with PSU.

Comment by Stuart 05.18.07 @ 12:09 pm

And finally, they are also too stupid to understand that the university DOES receive money from the state – READ YOUR OWN CRAPPY NEWSPAPER –

link to collegian.psu.edu

They get $350 MILLION a year from the state governement – and its only a shell game to say that the state doesn’t pay JoePa’s salary! Our tax dollars are paying his salary, along with paying for kids to go to that shithole. You don’t want to tell us how much we’re paying him – fine, go at it yourselves, send that money to Pitt. Stop wasting our tax money.

How about Pitt gets roughly half as much money as PSU. And about the same as temple. So quit your whining – the state does pay part of his salary, just like they paid part of your tuition.

I’m from out of state, I paid my whole tuition.

Comment by Stuart 05.18.07 @ 12:20 pm

“the only reason I have ever seen for that is if you are a religious orginization under 501c3 – but they’re not, they’re an educational facility.”

are they really considered an educational facility?

Comment by Rex 05.18.07 @ 12:28 pm

On a different topic – over at BSD they said “With the advent of the 12 game schedule, there was speculation the Big Ten would add a conference game or two. They talked about it in meetings this week and said me no think so. So it looks like we’re destined for more games with Temple, Buffalo, and Youngstown State for the foreseeable future.”

It’s a good thing they can’t fit Pitt in there still. Much better games with home-and-homes against Temple. NOW whats the excuse.

Comment by Stuart 05.18.07 @ 12:28 pm

“are they really considered an educational facility?”

Only by the IRS, and we all know how intelligent and coherent they are.

In all seriousness though, haven’t you seen how good their agriculture program is? You can’t fuck with that!

Comment by Stuart 05.18.07 @ 12:32 pm

Remember when Morelli declared his love for the University of Pennsylvania State?.. That shit cracks me up.

Comment by ChrisA 05.18.07 @ 12:34 pm

The best part is the link at the top points to a story about strip clubs in Ohio –

link to cleveland.com

Chas, what are you trying to say?

Comment by Stuart 05.18.07 @ 12:37 pm

“are they really considered an educational facility?”

Only by the IRS, and we all know how intelligent and coherent they are.

In all seriousness though, haven’t you seen how good their agriculture program is? You can’t fuck with that!

Dont forget about their real bread and butter ..their world renowned Ice Cream Making Program.

Comment by Rex 05.18.07 @ 1:44 pm

If PSU has to reveal how much they pay Paterno, then they won’t be able to self-righteously brag about how much Joe-Pa gives to the University – the classic “our coach gives to the college, while your coach recruits thugs and chases after shoe contracts…” BS.

Comment by Patrick 05.18.07 @ 2:36 pm

Stuart, regarding the link.

Whoops. Fixed that. It now goes to the AOL Post (and the comments that are trickling in from PSU folk are great — he’s a legend, it’s no one’s business).

Sorry, about the strip club bit; that was an article I was using for discussion at one of my other blogs. Too many open windows and things to type.

link to cleveland.com

Comment by Chas 05.18.07 @ 3:34 pm

Makes you wonder how many million per year JoPa is really getting, if you remember a few years back he donated 2-3 million to the school’s library. I’m betting it’s something serious that the school is fighting to keep his numbers hidden, probably 2-4 million plus per year. Nice to know everyone in PA is subsidizing oldpa.

Comment by Marco 05.18.07 @ 3:47 pm

The sad thing is, he doesn’t even do anything anymore. The University is probably paying $2 million or more a year, just so we can see Joe muttering to himself on the sidelines 5-6 times a game.

Comment by Jeff 05.18.07 @ 4:04 pm

What would be the reaction if we find out OldPa is actually receiving compensation in the range of 5 million or more….?! It’s possible, if that was the case, that might explain why they don’t want to play Pitt. It wouldn’t be because they need to fund their other NCAA team sports, but rather to pay OldPa….just a thought!

Comment by Marco 05.18.07 @ 4:55 pm

The ratio to what the PSU football program brings in is probably similiar to what Dave is making compared to what the Pitt program brings in.

Comment by jk 05.18.07 @ 5:15 pm

That’s irrelevant. PSU’s football program would make money even if the team went 0-11 every year.

The relevant question is whether a (partially) state-funded institution is overpaying an employee is paying significantly above market wages for the job of head coach and trying to hide it from the tax-paying public.

Comment by Jeff 05.18.07 @ 6:27 pm

They are most likely paying more than the average D-I coach, but probably not grotesquely so. Even so, they are probably playing various funky accounting games to make the base appear low while funneling more through alternate accounts (maybe through the Boy Blunder, Jay) to give the impression that Paterno is altruistic and holy. So even if/when the information comes out it probably won’t be accurate. I think the current situation is merely indicitive typical above-the-law obdurate attitude they have up there …

Comment by geeman2001 05.19.07 @ 1:01 pm

[…] Oh, bull-effing-crap. Can they please cite the state that can claim the competitive advantage from a lack of open records that aided university research partnerships with companies? Pennsylvania has one of the weakest and worst open records laws — to go with the historically lack of transparency of government — amongst the 50 states. Lack of state government transparency should not be a competitive advantage. […]


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