The University of Oregon is suing a risk management firm for $87,965.74 in bonuses that were paid to coaches in the 2012- 2013 football season, as the university believed these expenses were covered under insurance.
The suit states that in July 2012, Executive Senior Associate Athletic Director of Finance and Administration, Eric Rodel was approached by an insurance broker in regards to the university’s necessity to provide bonuses to the coaches of the 2012-2013 football season based on their contracts and the teams performance.
In contract, the bonuses reached their maximum if the team won the PAC- 12 conference and the BCS national championship game. Smaller bonuses were available based on how many games the team won and the smaller amount of bowl games they participated in. The university wanted insurance that covered all situations.
When Rodel reviewed the policy, it showed that only maximum bonuses were payable including winning all 12 regular season games, the PAC- 12 Championship game and the BCS national championship. Though, according to the suit, Drummer, an agent of the risk management company, confirmed that lower amounts would be covered as well.
All involved parties understood that the policy covered all bonus payments to the UO football coaches, stated to the suit.
That year the team finished second in the PAC- 12 and fifth in the country.
After the football season was over, the university was informed that their claim would be denied because the insurance only covered the maximum bounces.
“We believed it was necessary to file the complaint to preserve the university’s legal remedies and to protect public resources,” Senior Director of Communication for the UO, Julie Brown said.
Brown could not provide any further information because the litigation is pending. This suit is among to the U.S district courts of Eugene.
The insurance company declined to comment.