For the 2015 fiscal year, the NCAA budgeted $6.7 million for legal expenses. It wound up spending $25 million. CFO Kathleen McNeely’s reaction to the disparity? “I was naïve in believing that our legal fees would start to come down, I’m willing to admit that. It’s a litigious environment.”
No shit, Sherlock. I wonder how that happened.
The dramatic increase in legal costs occurred amid an array of legal challenges, including the Ed O’Bannon antitrust case and a suit stemming from the Jerry Sandusky child sex-abuse scandal at Penn State. U.S. District Judge Claudia Wilken ruled on the O’Bannon case in August 2014, but the NCAA’s appeal to the 9th U.S. Circuit Court of Appeals occurred during 2015.
It’s like they expect to be able to do whatever they want without anyone objecting to it. Including their own lawyers.
… She said that for the 2016 fiscal year, the association again budgeted $6.7 million for outside legal fees, and while she is not yet certain of what the final expense total will be, she said it could be more than $20 million.
As a result, she told the business managers, the NCAA’s fiscal 2017 expense budget includes $20 million for third-party legal fees “and we’re asking our attorneys to try to live within that.”
I’m sure representing the NCAA is a real privilege.