West Virginia Radio Corp. Settles Suit Against WVU, IMG College
June 26, 2015 at 3:59 AM (PT)
JOHN RAESE's WEST VIRGINIA RADIO CORP. has settled its lawsuit against WEST VIRGINIA UNIVERSITY, IMG COLLEGE, and WEST VIRGINIA MEDIA HOLDINGS over an athletics media rights dispute. WVRC sister company METRONEWS reports that the settlement terms were not available but were not tied to MOUNTAINEERS games returning to RAESE's stations.
The suit accused WVU Athletic Director OLIVER LUCK and WVU Board of Governors Chairman and WEST VIRGINIA MEDIA HOLDINGS investor DREW PAYNE of rigging the bidding to get IMG the contract, which it won in DECEMBER 2012 only to have it overturned after a state Attorney General's review that found that LUCK impermissibly shared confidential information with PAYNE. IMG win a second round of bidding, paying $86.5 million over 12 years for the sports rights.
In a joint release, the parties announced that WVU, after a study of its procurement and purchasing practices, has "undertaken significant, ongoing improvements designed to enhance its procurement function" and has "modified the procedure by which it authorizes disbursements of funds held by the FOUNDATION FOR WVU."
WVU President E. GORDON GEE said he was "very pleased to bring this matter to a final resolution. WVRC is a significant contributor to our local community, WEST VIRGINIA UNIVERSITY, and the State of WEST VIRGINIA. The University deeply appreciates and values the partnership it has had with WVRC for more than 70 years in bringing high-quality radio broadcasts to MOUNTAINEER fans throughout WEST VIRGINIA and the surrounding states.”
RAESE said he was "very satisfied with the settlement and the need to move forward. I certainly appreciate the approach of Dr. GEE to these matters. Our companies will look forward to supporting WVU's and the FOUNDATION's mission of making WVU one of the leading institutions of higher education in the country."