A New York state investigation into student loans has widened its view, and the University of Oregon and its athletic department are being asked to turn over documents related to their relationship with University Financial Services.
Thirty-nine collegiate athletic departments, including the University of Oregon and Oregon State University, were sent either subpoenas or requests for all information regarding the institutions’ relation to UFS, New York State Attorney General Andrew Cuomo announced Wednesday.
“Students trust their University’s athletic departments because so much of campus life at Division I schools centers around supporting the home team,” Cuomo said in a press release. “To betray this trust by promoting loans in exchange for money is a serious issue, especially when Division I schools already generate tremendous revenue from their student athletes. Today’s action is an important new step as we continue to examine the unethical conflicts that pervade the student loan industry.”
The University released a statement on Wednesday about the allegations, confirming that it had received a request for information. “The University of Oregon has no contract or other business relationship with University Financial Services,” the University said in the statement prepared by Senior Director of Public Relations Phil Weiler. “ESPN Regional Television, the University of Oregon’s marketing agent, has a sponsorship agreement with UFS to sponsor University of Oregon athletics.
“The University was in no way involved with ESPN Regional Television’s decision to contract with UFS as a sponsor.”
The University also defined in the statement exactly how ESPN Regional Television’s deal allowed UFS to market to students. The University’s deal brokered through ESPN Regional Television allows for advertisement space on the department’s goducks.com Web site and in game programs; promotional literature tables at football and basketball games; and the recognition of UFS as an official sponsor of the athletic teams. The University vehemently denied any other involvement, with the press release including the statement, “No University of Oregon employees are involved in the arrangement nor do any University of Oregon employees receive any benefits from the agreement between ERT and UFS.”
“The University has no relationships with lenders similar to those that have prompted the New York State Attorney General’s interest and concern.”
When asked for any other comment, athletic department Media Services Director Dave Williford said the comments in the press release were the official stance of the University and athletic department.
Cuomo’s investigation is also searching into how USF utilizes team colors and mascot names to imply official lending partner status. Goducks.com currently has an advertisement for USF, and the link connects to a green-and-yellow-colored version of the company’s Web site template, and a 1-800 phone number that includes the Ducks mascot name. In its statement Wednesday, the University said that USF’s agreement with Oregon and the athletic department was “not exclusive.”
Oregon State and UCLA were the only other Pacific-10 Conference schools named by Cuomo in Wednesday’s release; other Bowl Championship Series-conference institutions named in the investigation included Auburn University, Georgia Tech, University of Kansas, Rutgers University, University of Louisville, and University of Pittsburgh. The investigation widens onto a national scale after the athletic director at Dowling College in Long Island was found in a revenue-sharing program with UFS, which included steering students toward the company and gaining $75 per student referred by the athletic department.
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