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November 20, 2008
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Collegiate Sports

Internal Review Finds RU Athletic Dept. Went Unmonitored

Review Finds Rutgers Was Ill-Prepared To
Handle Move Toward Big-Time Football
An internal  report released late yesterday found that Rutgers Univ.'s (RU) athletic department was "allowed to become a virtually independent operation within the school -- bending rules, answering to no one and spending freely," according to Sherman & Margolin in a front-page story for the Newark STAR-LEDGER. The review found that the athletic department "veered out of control" because RU President Richard McCormick and the school's BOG "failed to monitor [AD] Robert E. Mulcahy in the drive to bring athletic success to Rutgers." The overall conclusion of the review, which was completed by a panel of business leaders, judges, lawyers and RU officials, was that the school was "ill-prepared to handle its push into big-time football." The report stated RU "operated with inadequate internal controls, insufficient inter-departmental ... communications, an uninformed board on specific important issues and limited presidential leadership." The report also found that of the four multimillion-dollar employment agreements football coach Greg Schiano signed with Mulcahy, "none [were] discussed or reviewed" by the school's BOG. The report indicated that Mulcahy "was given broad authority intended to boost the athletics program," but the report "found no wrongdoing on Mulcahy's part." The report also found that there was "no formal notice by Mulcahy of his son's employment" with Nelligan Sports Marketing. But the report said there was "no basis to conclude Mr. Mulcahy acted in a way that he knew to be improper or not in the best interests of the university."

FALLOUT: McCormick, in a written statement responding to the report, said that RU "would take additional steps to 'manage effectively an increasingly successful and fiscally complex athletics program.'" McCormick said that among those actions will be "additional administrative oversight of the athletics department, expanding the size and responsibilities of the university's internal audit department, requiring employment contracts of all coaches include all elements of compensation, as well as his own approval for those compensation packages." McCormick added that the report "acknowledges the changing culture of a rapidly developing NCAA Division I football program that has placed additional stress on the system at Rutgers, and noted the report identified no illegal or unethical activities at Rutgers, nor did it raise concerns about the outcomes of decisions that were made by the university" (Newark STAR-LEDGER, 11/20).

CHANGES TO COME: In New Jersey, Erica Harbatkin noted the report "touted many" of McCormick's "plans to increase oversight of athletic department decisions." The report also "recommended an in-depth internal review of existing procedures"  (HOME NEWS TRIBUNE, 11/20). Review committee co-Chair Alfred Koeppe said that the "rapid growth of the athletics department contributed to the troubles he investigated." Koeppe: "You had these stresses that came with the very quick maturation of the program itself, and you had a structure that had weaknesses in it. ... I think the structure had its flaws right from the start because the internal controls were really not there. And then you had some challenges that clearly the athletic director had in terms of operating in an insular manner" (N.Y. TIMES, 11/20).


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