PAC-12 In More Trouble Financially . . . (2 Viewers)

[ISUforNU]

Pac-12 fires senior execs for failing to disclose overpayments

The distribution partner claimed overpayments to the conference totaled more than $50 million.

theathletic.com

Pac-12 fires 2 senior executives for failing to disclose overpayments by distribution partner​

By The Athletic Staff
Jan 20, 2023

The Pac-12 fired two senior executives Friday after an independent investigation concluded they failed to disclose overpayments by a distribution partner dating back to 2016, the conference announced.

According to a release, the conference initiated an audit in the spring of 2017 that concluded one of the Pac-12’s distribution partners had “overpaid the Pac-12 Networks for the year 2016 by a material amount.” Both executives, who the conference did not identify, were made aware of the audit results in December 2017 but did not inform the Pac-12 Board of Directors or the Pac-12’s external auditors of the “financial risk associated with the findings,” per the release.

n October 2022, the distribution partner who was the subject of the 2017 audit claimed that it “had been overpaying the Pac-12 each year since prior to 2016” with overpayments totaling more than $50 million, the release said.

The Pac-12 Board of Directors Audit Committee then hired the law firm of Cooley LLP to conduct an independent investigation, which concluded on Jan. 13 and found that the two senior Pac-12 executives were aware of an overpayment from a distribution partner since late 2017 and “failed in their obligations and duties to immediately disclose this information related to an immediate and material financial risk to the Pac-12 to the Pac-12 Board of Directors and the Pac-12’s external auditors.”

Pac-12 commissioner George Kliavkoff made the decision to fire the two senior executives based on the findings of the investigation, the conference said in its release.

“The Pac-12 took immediate and appropriate action to address this matter, consistent with best governance practices,” the release said. “Pac-12 leadership is committed to supporting our members and student-athletes, and always operating at the highest level of professionalism.”