MANHATTAN, Kan. (AP) _ Kansas State has filed a lawsuit
challenging a secret deal between former athletic director Ron
Krause and former football coach Ron Prince that would pay Prince
$3.2 million in deferred compensation between 2015 and 2020.
Kansas State president Jon Wefald said he found out about the
deal on May 11 and that nobody in the administration or athletic
department knew about it. The lawsuit seeks to invalidate the deal.
Prince resigned in November, three months after signing a
five-year contact with a guaranteed compensation package of $1.1
million a year. Krause resigned Wednesday from his job as director
of economic development for the school's Olathe Innovation Campus
upon Wefald's request.
WIBW reviewed the document Thursday. Here are some of the key points:
The University contends that the deal was secret and bypassed any legal representative of the university. Prince’s attorney Neil Cornrich is saying a memorandum of understanding is still binding on K-State.
Another argument Kansas State is making is that Prince’s company, In Pursuit of Perfection did not even exist at the time the agreement was signed on August 8 of last year, therefore, the memorandum of understanding is unenforceable.
The University is asking Riley County district court to issue a declaratory judgment that the $3.2 million memorandum is void.
The lawsuit includes the actual memorandum, signed by Bob Krause, showing Prince’s company would get $800-thousand at the end of 2015; another $800-thousand at the end of 2016, and the final $1.6 million at the end of 2020.
(Copyright 2009 by The Associated Press. All Rights Reserved.)