Wednesday, July 9, 2008
Rodriguez agrees to pay WVU $4 million
Fred Girard / The Detroit News
Michigan football coach Rich Rodriguez ended the ugly court fight with his former employer, West Virginia University, when he agreed late Tuesday night to pay a $4 million buyout clause.
WVU attorney Tom Flaherty confirmed to the Associated Press the deal had been reached.
Now all that remains is the question of who actually will pay the money.
Michigan should, "as an inducement to netting (Rodriguez) as a coach, make him whole on the transaction," including any taxes involved, his CPA, David A. Hammack, of Maumee, Ohio, said in a memo disclosed earlier.
"This would mean not only fronting the $4 million payment to WVU, but also grossing it up for Rich, since the $4 million would be part of his first-year compensation," Hammack wrote to Rodriguez' financial advisor, Mike Wilcox, on Dec. 13.
U-M officials have not denied that possibility exists, but could not be reached immediately for comment.
Rodriguez's six-year contract with U-M has not been finalized. A letter of intent between the parties calls for Rodriguez to make $300,000 in base salary, $2.2 million in other compensation, up to $300,000 in performance incentives, just less than $2 million to pay nine assistants, and for him to own and operate the school's summer football camp. Other perks include insurance and retirement benefits, and two cars.