10/19/1994

UCCSN Board of Regents' Meeting Minutes
October 19-20, 1994








10-19-1994

Pages 50-66



BOARD OF REGENTS

UNIVERSITY AND COMMUNITY COLLEGE SYSTEM OF NEVADA

October 19, 1994



The Board of Regents held a Special Meeting on October 19, 1994

in the Grand Hall, Richard Tam Alumni Center, University of

Nevada, Las Vegas.



Members present Dr. James Eardley, Chairman

Mrs. Shelley Berkley

Dr. Jill Derby

Mr. Joseph M. Foley

Mrs. Dorothy S. Gallagher

Mr. Madison Graves, II

Dr. Lonnie Hammargren

Mr. Daniel J. Klaich (via telephone)

Mrs. Nancy Price (via telephone)

Mrs. Carolyn M. Sparks

Mrs. June F. Whitley



Others present: Dr. Richard Jarvis, Chancellor

Mr. Donald Klasic, General Counsel

Interim President Kenny Guinn, UNLV

Ms. Mary Lou Moser, Secretary



Chairman Eardley called the meeting to order at 9:10 A.M. with

all Regents present in Las Vegas except Mr. Klaich and Mrs.

Price who were teleconferenced into the meeting. Chairman

Eardley stated the purpose of the meeting was to discuss UNLV

Athletics.



Chairman Eardley introduced Dr. Richard Jarvis, Chancellor of

the University and Community College System, who had just re-

ported for duty on October 17, 1994.



1. Approved the Buyout of Employment Contract



The Board approved the buyout agreement between UNLV and

Rollie Massamino, providing for Mr. Massamino's resignation

as Head Coach of the UNLV Men's Basketball team. A copy of

the agreement had been made available prior to the meeting.



Interim President Guinn referred to a copy of a report he

had made to the Board at its August 25, 1994 meeting con-

cerning UNLV Athletics and its Men's Basketball Coach and

Program. He related the following:



About 3 weeks previously he had been approached by a

number of people asking whether he would be interested

in discussing a negotiated settlement with Mr. Massa-

mino. He had not approached Mr. Massamino up to that

time.



During the first meeting with Mr. Jim Weaver, Athletic

Director at UNLV, Mr. Massamino and the President, it

was clear there was a serious problem at UNLV and

discussion centered on how it would affect the entire

Athletic Program in terms of income, ticket sales,

scholarship sales, etc. A great deal of media atten-

tion had been given to the situation involving the

supplemental contract, often quoted as the "secret"

contract, and that pressure was building for some

action to be taken. Coach Massamino also felt this

was happening. After the discussions, the Coach felt

it would be best if he were no longer the Coach at

UNLV; that it was best for UNLV, the student athletes,

and for the Massamino family.



After that, it became a matter for discussion of what

UNLV could afford to pay, what the ramifications were

for litigation inasmuch as this was a very complex

situation for the institution and the individuals

considering the contractual agreement UNLV had with

the Coach.



In all the contacts with Coach Massamino, Dr. Guinn

related he had not said anything publicly that the

Coach had done anything wrong; that he truly believed

the Coach had been offered a deal provided to him

through an agent and legal advisor of the institution,

in and of itself, with or without Board of Regents'

permission.



Upon Dr. Guinn's request to see all contracts, docu-

ments, bond issues and indebtedness, the supplemental

contract for Mr. Massamino was revealed. At no time

did Mr. Weaver ever deny there was a supplemental

contract, and supplied everything he had been asked

for in a most professional manner. However, there

were some other University personnel who denied

emphatically, when asked, that there was a supple-

mental contract, even though those people had signed

such a contract.



In looking at those contracts, it was evident immedi-

ately there was a serious problem which had to be

made public and had to be solved.



Dr. Guinn spent 2 to 3 weeks gathering information

and discussing the situation with Coach Massamino.

He felt the best approach was to treat the contracts

as though they had been approved and perhaps there

were some misunderstandings. A press conference was

held to announce the contract and to relate there

were concerns about the contract which would be set

aside, thereby allowing the Coach to proceed with a

contract of $386,000 along with a $125,000 shoe con-

tract, totaling $511,000.



Dr. Guinn determined that any other contract would be

brought to the Board for approval, as would the Varsity

Club Foundation under the rules passed by the Board in

June, 1994. If the Board did approve such contract and

Foundation, then it would have the problem of collect-

ing the money from the individuals that had been com-

mitted under those contracts. That is another issue.

Dr. Guinn stated that if the Board approved the con-

tract, he would not collect money for that contract be-

cause he is not a "bag man" for anybody; that he would

only go to the community for funds for scholarships for

young people at UNLV.



When the above arrangement did not work out, the matter

was brought to the Board on August 25, 1994. Dr. Guinn

reminded the Board that this issue had not been discuss-

ed with him at the time of his hiring because it was

not known at that time. The Board had asked that Dr.

Guinn come to the University to work on a legislative

program and to assist in bringing the community and

University together with the litigation over the Tar-

kanian and University law suits. The Board unanimously

approved the UCCSN Legislative Program. Since the set-

tlement with the Tarkanian litigation there has been

little discussion, which has helped immensely with

the community. Dr. Guinn referred to the $10 million

shortfall at UNLV and his handling of that matter.



Continuing with the matter at hand, Dr. Guinn stated

he noticed Mr. Massamino in a letter indicating to

him that he was the Basketball Coach of this Univer-

sity under the basic contract of $386,000 and the

approval given by the Board for the shoe contract of

$125,000. But when the issue became such a "hot" one,

and a debatable issue by so many difference people,

the negotiated settlement talks began.



Dr. Guinn related that although the amount of settle-

ment ($1.855 million) is large, any settlement out-

side of litigation is better than the very best liti-

gation one could have. Millions of dollars have been

spent in litigation so far. Dr. Guinn hired Mr. Morton

Galane, attorney, and has spent many hours with him and

his staff in analyzing the contracts. In the best

opinion of everyone concerned, it was agreed that a

settlement should be made.



Dr. Guinn explained that he did not want to be, nor

did he want the University to be, a part of a situation

wherein there would be a letter agreement for coaching

at UNLV for the next 5-6 years under the contract of

$511,000, because if there is a "long-arm agreement",

whether in or out of the State of Nevada, then a debate

can occur on the issue of the supplemental contract.

Legal advisors stated that if the $511,000 was paid

over the term of the contract, there is still a period

of 6 years, under one of the laws, where the individual

could still sue for the over $2.25 million of the sup-

plemental contract alone, plus accrued interest, and

litigation fees if one loses. Along with that would

be the embroilment of so many people in the community.

Dr. Guinn related that the last few weeks have been

strenuous; that he had been "pushed and pulled" by

people who have money, by people who don't have money,

and by people who don't have any facts. He stated

that he could not allow this to continue and must be

allowed to do what is right.



Dr. Guinn related negotiations have gone from a $5.7

million obligation on paper, with litigation surrounding

it, to the $1.8 million settlement. He related that in

order to get releases from everyone involved -- Varsity

Club, UNLV Foundation and the University -- it was dif-

ficult, but it is completed and there will be no return

to this agreement. All this caused the price to go up.



Dr. Guinn apologized to the Board for receiving the

contract, in some instances, after the release to the

media. He explained that once the settlement was signed

it became a public document and with 65 or so media

personnel present it was released. An attempt was made

to fax the settlement to the Regents at the same time

it was made public; however, there was a machine mal-

function.



The Administration of UNLV has been very concerned with

the reduction of ticket and scholarship sales from $4.6

to $4.7 million to less than $2 million, which has been

going down over the last two years. Something needed

to be done to offset that downward spiral. Athletics

is down this year to a budget of about $10.3 million,

and more and more dollars have been taken from the

Thomas and Mack Center: 3 years ago it was about

$125,000, last year it was $750,000, and this year

$900,000 plus is coming from Thomas and Mack Center.

Also in the $10 million budget is an income stream

projected of ticket and scholarship sales of $3 million

when in actuality it is down to $2 million. This af-

fects the entire sports program at UNLV, which is a

major concern. Out of the $10 million, UNLV receives

roughly $1 million from the State in tax dollars, which

goes into scholarships, salaries for clerical, and some

of the long-time Coaches who have been on the State

payroll for years. Another $1 million of the $10

million comes from student tuition which the students

had voted to put into athletics. Without the outside

revenue, the Department would have $2 million for oper-

ation and must depend on advertising sales, tickets,

scholarships, etc.



Dr. Guinn stated that in the future he believes there

will be flexibility for the program, therefore long-

term solutions are necessary for the problem. It is

the goal of UNLV to try to change the image of what

a Basketball Coach is at UNLV. He related that he

did not think the Coach needed the biggest and fanci-

est office in the whole University; nor should UNLV

pay a Coach a million or $800-900,000 or $500,000 a

year. The Coach to be hired now will be with the

money that is left after taking the dollars that are

paid out from the dollars that are coming in, and at

this time UNLV can offer no more than $300,000, in-

cluding the shoe contract. He stated that there is

an outstanding Football Coach at UNLV who is not paid

nearly that salary -- it is $100,000 or less.



Dr. Guinn emphasized that the community also has a

responsibility: he would not be intimidated, he would

not run from a news article, or a threat of withdrawing

funding for a building, or anything else; that the

University would be in place forever. He continued

that he had friends over the last 30 years who had

helped UNLV greatly, but are now taking their dollars

elsewhere. He stated that so long as he is at UNLV

he would not take any money to pay off any Coach. He

related that every penny for this settlement is from

funds at the University. He continued that he be-

lieved that if money is taken for a particular reason

there are always "strings attached". He stated he

would recommend that basketball be disbanded on the

Campus before taking anything beyond his previous

statements.



He asked that item number 2 on the agenda be withdrawn

because he was not in a position to name a Basketball

Coach at this time. He stated that although negotia-

tions have been underway, nothing has been settled;

that it was a "matter of chemistry" which is necessary

for the program to be successful. Dr. Guinn related

that he did not want to rush into a decision which

would cause problems in the future. He continued that

he was concerned for the student athletes who were wait-

ing to learn who would be their Coach. The Athletic

Department was to make a recommendation to the Presi-

dent by noon this date on replacement of a Coach. He

related there was no deal struck with Tim Grgurich at

this time because the "chemistry" was not there. He

had talked with others about an Interim Coach, which

would give some time for a final decision. He called

on the community to help the University for this year

assuring them the situation would improve soon. There

will be more of an income stream coming from joining

the WAC.



Dr. Guinn again related that no money would be solicited

from the community to take care of this kind of problem.

He stated that "we created it, let's solve it." UNLV

must live with its own solution. Dr. Guinn stated

emphatically that he would not change this solution

because he felt a change was necessary; that no Coach

needs to work under the pressure that Coach Massamino

was working under no matter what it was created by.

He felt there was enough money from the University to

be able to make an offer for a new Coach.



Dr. Guinn stated that in the contract for a new Coach,

there will be an oversight committee listed in the

contract so that the message goes forth that academic

people, Regents, and an outside auditing firm will be

involved to make sure that the program is pro-active

rather than re-active.



Dr. Guinn urged the Board to accept his recommendation

on the matter. The settlement assures that all claims

against the Varsity Club, UNLV Foundation and John

Goolsby have been dropped, along with the claims against

the University. Coach Massamino will receive the money

over a 5-year period on a monthly basis, with the right

for an early pay off. An approval means that UNLV does

not have a Coach. If approval is not given, Coach

Massamino would remain the Coach under the existing

circumstances and the University would still be exposed

to all the concerns voiced above.



Dr. Guinn related that through this matter he has lost

some long-time friends, but that he considered them

only acquaintances, because they want something for

nothing.



Chairman Eardley asked each of the Board members to comment

and ask questions.



Dr. Hammargren stated he was prepared to move that the Board

accept Dr. Guinn's negotiated settlement of Coach Massamino.

He related that in 1989 he attended a conference and later

urged that a Regent committee review athletics at all Cam-

puses. The Board adopted a policy on sports programs, in-

cluding compliance offices to ensure compliance with NCAA

rules. In 1989 and 1990, national conferences were held

at UNLV and UNR on improving and reviewing sports programs.

In 1991 the Regents dropped the committee at the request

of UNLV's President because it decreased the authority he

needed to do his job. Dr. Hammargren protested in 1991,

listing his "Twelve Points of Blight", which demonstrated

fiscal responsibility and gross violations of civil rights

at UNLV. He continued that one of the results of dropping

the committee was that one of the advisors at UNLV, who

had administered the symposiums and proposed administrative

reforms for the Campus, was "canned". In 1992 he predicted

that the actions in athletics and civil rights violations

would cost $10 million in legal fees and buyouts. In 1992

he had suggested dropping Basketball at UNLV, and to put

educational priorities first. In 1993 he published and

demanded answers on many contracts, some blatantly illegal,

and others with secret side deals. In 1993, these allega-

tions led the Legislature to pass laws requiring fiscal

responsibilities for Universities and their support groups.

He continued that another Hammargren law, SB 174, guaranteed

all government officials be directly responsible to the

people and not to other politicians.



Now, in 1994, Dr. Hammargren stated his $10 million pre-

diction has been exceeded. He related that in August

1994 he suggested that Mr. Massamino be terminated because

he felt his contract has been voided at face value when he

lied to the media the very day that he signed the contract.

Further, he felt the UNLV President had lied to the Board

of Regents a week later when they had voted on the con-

tract. However, he stated he did not pursue the matter

at that time because he felt he was committing the same

media atrocities that others had done. Instead, he dis-

cussed the matter with other University Regents, attorneys

and Dr. Guinn to find a way to work out the problem so as

not to "try" Mr. Massamino in the media. He stated he

agreed with Dr. Guinn that any negotiation was better than

facing litigation and a $5.7 million debt and attorneys'

fees.



Dr. Hammargren continued that the town had voted with their

pocketbooks not to support the Basketball Program, and now

since they feel something may be different, a half-million

dollars came in to UNLV in the form of ticket/scholarship

sales. He felt that Dr. Guinn has the authority to hire

any Coach he wishes without asking the Board's approval

for contracts less than 3 years.



Mrs. Berkley thanked Interim President Kenny Guinn for

doing an extraordinary job under the most difficult of

circumstances. She stated that as a Student Body Presi-

dent at UNLV she observed the Board and decided at that

time to become a Regent some day. She has continued her

relationship with the University since 1968 and the Uni-

versity has given her the opportunity for an education

at an affordable price. She stated that most of the

community realizes the potential of the University and

for what it does for the people in the State of Nevada.

She urged that it is time for the University to move for-

ward and on a positive mode.



Mrs. Berkley stated she has never believed that this issue

is one of athletics versus academics, because she felt that

was elevating athletics to a position it did not deserve.

She related that she has come to realize what the importance

of athletics is to a University. UNLV is a public insti-

tution and is dependent upon the public for support. Ath-

letics does bring people onto the Campus to rally support,

then another time they may come for a cultural event, and

hopefully one day will come for continuing education. She

stated that her efforts were for high school students to

choose UNLV because it is their "institution of choice".



Mrs. Berkley stated that the sum of money for the buyout

was very high and a bitter pill to swallow. Continuing,

she related that as Chairman of the Legislative Committee

she is very much aware of what it takes to raise $1.8 mil-

lion in tax dollars to support the institution. Mrs.

Berkley stated she knew how many scholarships, faculty

members, equipment that money could pay for. However, she

felt it was time to put the controversy behind and move

forward. She had spent a great deal of time with Mr. Galane

the day before, and assured the Board that she firmly be-

lieved this was the best solution to the matter. She re-

lated that as a member of the Regents' Presidential Search

Committee at UNLV, and during an interview with a consultant

it was related that in national circles people are telling

UNLV jokes. One of the faculty members of the Committee

asked that the jokes not be repeated; that he had spent 20

years of his life at this institution and any joke about it

would be very painful to hear. Mrs. Berkley stated that

she and many others have too much invested in this insti-

tution to continue the "folly" any longer.



Dr. Derby asked Dr. Guinn to clarify where the money will

come from to buy out the contract. Dr. Guinn replied that

in making a change (in Coaches) UNLV would be able to sell

more tickets and scholarships, thereby increasing the in-

come flow to the Athletic Department. UNLV structured any

offer they would make to any permanent Coach and their

Assistants, and any Interim Coach and their Assistants,

which would be paid for out of existing funds by rearrang-

ing the dollars owed beyond Coach Massamino and where they

are today. He added that by so doing for this first year,

UNLV would end up with a shortfall if they were to go with

a permament Coach and pay a total of $300,000 a year. How-

ever, he reminded the Board that it was $300,000 minus

$125,000 (shoe contract), or roughly $175,000 of UNLV

dollars where they have been paying out $386,000. For this

first year, if a permanent Coach was hired, there would be

a shortfall of $196,000, but the next year there would not

be the shortfall.



Dr. Guinn stated there were people in the community who

have offered that money, but he has refused to take it

because he felt the University must handle the matter.

He related there would in essence be no tax dollars or

student money used for this, but only using receipts from

advertising, sale of programs, etc., or ticket sales and

scholarship monies from donors.



Dr. Guinn stated that the Athletic Department may have to

make some dire adjustments, but they are prepared to do

that just as there have been dire adjustments made in aca-

demic Departments. He added that they are running the

University with about a $500,000 contingency. He assured

the Board there would be no tax dollars and no money col-

lected specifically for this buyout.



Dr. Derby stated that what was facing the Board was a

choice among dismal choices in this matter, but she felt

Dr. Guinn had brought forth the best of those dismal

choices. As Chair of the Search Committee for the UNLV

President, Dr. Derby stated that it is so very important

to put the basketball controversy behind. She agreed with

Dr. Hammargren that she would sooner cancel the Basketball

Program and move on, than to have this cloud of controversy

continue to surround the University. The Search Committee

is looking for the very best talent and they have developed

a leadership profile outlining the wonderful opportunities

which will be available to the next President of UNLV. But

the UNLV image is clouded by the "noise" of the basketball

controversy which must be laid to rest.



Dr. Derby stated her entire confidence in Dr. Guinn and her

appreciation for what he has done in solving the problems

that are current at UNLV so that a new President will come

on board and have every chance of success.



Dr. Derby spoke in protest of the topic on the "table",

which is the impact of high-profile sports programs at

Universities. The Universities are faced with an enormous

pressure to win, and the "Catch 22" they must face in pay-

ing excessive salaries to Coaches and long-term contracts,

when in fact, these same Universities pay far less to

those who carry out the central mission of teaching. She

stated she resented the message of inverted priorities

this sends. She continued that she felt College sports

are out of hand when it allows Coaches to drive these kinds

of bargains and force these kinds of choices on the Uni-

versities. Although this is a national problem, she stated

Nevada must be a part of the reforms in College athletics.

She continued that there is a balance needed of academics

and athletics.



Mr. Graves expressed his thanks to Dr. Guinn for the manner

in which he has faced one difficult situation after another

and brought solutions and closure to them. He stated that

he did not believe Coach Massamino was at fault but was a

victim of circumstances. He reminded the Board that at

the time UNLV was without a Coach and it was essential to

bring one on board as quickly as possible, and the "ante

just kept on going up and going up". Mr. Graves stated

that it was of the utmost importance for the Board to be

able to show the taxpayers that there is accountability

of the University. He agreed with Dr. Guinn's pronounce-

ment of an oversight committee for the program, and offered

himself as a candidate to represent the Regents.



Mr. Graves stated that he firmly believed that academics

and athletics can and should co-exist, and while basketball

has brought many problems and shame over the last 2 or 3

years, it is still the vehicle that has put UNLV on the

map. He cited his travels around the world and UNLV is

known for its Basketball Program, which was, at one time,

highly respected. He commented on the UNLV Professors

who are known world-wide and whose salaries do not even

approach that of a Basketball Coach. He commended Dr.

Guinn for the solution brought forth on this agenda, and

stated that he felt it was fair and equitable to all

parties under the circumstances. He added that this

matter must be put to rest and this solution was the first

step in that direction.



Mrs. Sparks stated her concern, and what it has always been,

is what is in the best interest of the faculty and students

of this institution. She related that UNLV is the academic

and cultural center of this community and the entire south-

ern part of the State. She continued that the institution

and the community has suffered tremendously the last few

years, and perhaps irrevocably in some areas -- the faculty

and students have suffered. And yet, these same people

have stood by their institution and have made UNLV a place

for students to come, learn and graduate and be proud. She

stated she was pleased that Dr. Guinn was available to step

in and bring a voice of reason to this matter. Mrs. Sparks

agreed that basketball has been very important to UNLV

from the beginning and had put UNLV "on the map", but it

has also brought problems with it that should not have to

be dealt with by an academic institution. She agreed with

Mr. Graves concerning Coach Massamino and his family and

felt the arrangements Dr. Guinn has presented will allow

the program and the institution to move forward together.

She urged the Board and the community to support Dr. Guinn,

the new Basketball Program and the institution.



Mrs. Gallagher reminded Dr. Guinn and the Board that about

13 years ago she and Dr. Guinn were involved with looking

at the Athletic Program at UNLV. Some real deficiencies

were found at that time and recommendations were made,

but most of them were not implemented. She stated that

it was too bad that it has taken this long and with all

the controversy to get to this meeting today. She com-

mended Dr. Guinn for outlining in detail what will be

expected of the next Coach and that the office of the

President will be in charge.



Mrs. Whitley also commended Dr. Guinn. She announced she

would not vote for the agreement because of the total amount

of the buyout -- almost $2 million for one individual. And

then not to be able to hire Instructors for the students

she felt was ridiculous. She reminded the Board that for

the past 15 years she has advocated tying performance to

salary and felt it should have been done with the Basketball

Coach. Dr. Guinn stated that he, too, believed performance

based salaries are very important. He continued that there

were no such stipulations in the contract under discussion,

but felt there would be for future Coach contracts by pro-

viding incentives and the oversight committee to ensure the

rules are followed.



Mr. Foley questioned the contracts and why the institution

was substituting another one. He also questioned why Dr.

Guinn did not have Mr. Morton Galane report back to the

Regents on his findings. Mr. Foley continued that Dr. Guinn

has stated that one of the contracts was illegal. Dr. Guinn

corrected the statement in that he has never once said there

was a contract that was illegal. Mr. Foley insisted that

Dr. Guinn had stated the contract was illegal and that he

would not abide by it. Dr. Guinn stated the supplemental,

or secret, contract was not under State law because the

Regents had not approved it. Mr. Foley stated he was up-

set because Mr. Galane had not reported to the Board at

its October meeting, and apparently nothing would be

reported until the December meeting. Continuing, Mr. Foley

stated he then read in the papers that the Interim Presi-

dent was negotiating with the Basketball Coach a new con-

tract which was presented to the Board at this meeting.

He asked what cause was there for firing Mr. Massamino as

Basketball Coach? And, since there were contracts not

being honored, what would make anyone believe any contract

that was issued to a Coach or to a prospective new Presi-

dent?



Dr. Guinn, in clarifying for Mr. Foley, stated that before

approaching the Board, he met with UCCSN legal counsel. At

the Board's August 1994 meeting, he asked for some outside

legal advice so there would be no bias regarding the con-

tract documents: a base contract for $386,000, a shoe

contract, and a supplemental contract, not approved by

the Board. Dr. Guinn, prior to the August 1994 meeting,

sent a letter to Mr. Massamino stating that he was the

Basketball Coach under the contract voted upon, unseen,

by the Board of Regents on April 9, 1992, in the amount

of $386,000 plus a shoe contract. Although the amount

for the shoe contract was not known at the time of the

vote, it later turned out to be $125,000, which made a

total contract of $511,000. However, the letter continued

that if Mr. Massamino accepted any other money it would

be grounds for some disciplinary action.



On August 26, 1994, Dr. Guinn stated, he had aked the Board

for some outside advice on the matter inasmuch as he felt

there definitely was a conflict of interest on legal mat-

ters inasmuch as a System attorney had worked on the orig-

inal contract and had drawn up the supplemental contract.

In August, the Board approved Lonnie Hammagren's motion

that Dr. Guinn could hire a hearing officer under the

UCCSN Code. Under that provision, a full scale investiga-

tion would have to be conducted with anyone who had any-

thing to do with the matter, including depositions, etc.

which would cause another legal quagmire.



At the Regents' October meeting in Elko, at which time Mr.

Foley was not present, Dr. Guinn asked for and was approved

to seek outside legal counsel for advice without having to

go through very expensive litigation. He was seeking ad-

vice on whether his opinion was correct: was the contract

voidable, collectible or just where did he stand?



Dr. Guinn stated he has spent a great deal of time with Mr.

Galane and his staff and is now following the advice given:

that it was better to settle than to go to litigation. He

stated that if Mr. Foley could convince the Board to vote

against his recommendation, Mr. Massamino would remain

Coach, and UNLV would be exposed to the $511,000 contract

per year, plus a minimum guarantee of $375,000 per year

for the next 6 years.



Mr. Foley again asked that if this additional contract was

not illegal as it has been publicly declared to be, then

what reason is there to fire Mr. Massamino? Dr. Guinn

replied that he did not fire him. Mr. Foley asked whether

Mr. Massamino volunteered to leave, with Dr. Guinn reply-

ing that Mr. Massamino did volunteer to leave, but wanted

a lot of money to do so, and had started at $5.6 million.



Mr. Klaich, who was on a telephone hookup, stated he did

not think Coach Massamino ever had an opportunity to suc-

ceed, that he had not been given that opportunity. He

continued that he had great regrets for the student athletes

in the Basketball Program who, he felt, had been "shameless-

ly used" by powerful forces with other agendas. And he

regretted that the effect this has had on the faculty, stu-

dents and staff at UNLV. He objected to the conjecture that

once again an attempt be made to utilize basketball to put

UNLV on the map or to get back its reputation. A reputation

built on athletics is not needed, nor is a reputation that

is built on basketball. UNLV has already paid the price

for making that decision 20 years ago and Mr. Klaich stated

he was not willing to buy into that again.



Mr. Klaich stated that he believed the contract presented,

regardless of the price to be paid, has been appropriately

brought forth by Dr. Guinn, that the contract was negotiated

in good faith. He emphasized that the most serious item on

the agenda is the second item and the fact that the Presi-

dent and Athletic Director would dictate the terms of that

contract, not the Coach. Further, he agreed with perform-

ance related compensation and provisions which relate to a

"clean" program, with incentives and disincentives. He

related there had been some very serious mistakes made in

the past and did not want to see that happen again.



Mrs. Price, also on a telephone hookup, stated she had sent

by facsimile a list of questions she would like read into

the record. Mrs. Sue Baker read the following:



1. As former Chair and Vice Chair of UNLV Foundation at

the time of the secret contract, what is your under-

standing of the status of the UNLV Foundation? Is it

public or private?



Dr. Guinn commented that it was a little over a year

ago that he was Chairman of the UNLV Foundation, and

there had been a number of public bodies asking that

very question. As Chairman, all records were made

public, except donor names and amounts given should

those donors not wish to have that information made

public. State laws were passed and by June 1994, the

Regents had published policies concerning what founda-

tions must do to be associated with the System. By

those rules and regulations, the foundations are public:

meetings are open to the public, the Board of Trustee

meetings are open to the public, and the records are

open, with the exception stated above.



2. Questions have been raised regarding illegal activities

surrounding the secret contract, including IRS viola-

tions, cover up, and motives for the extremes to keep

the supplemental contract secret. You hired Mort

Galane to investigate; we should hear from him first.

The Ethics Commission is due to report their findings.

We should hear from them first. I believe we have

grounds to release Coach Massamino without a payoff.

What difference would a few days have made?



Dr. Guinn stated he did not believe that the timing

would be "a few days". The last ruling out of the

Ethics Commission took over 8 months. The Attorney

General has an investigation into the supplemental

contract, Varsity Club, etc. After meeting with Mr.

Galane and staff, Dr. Guinn stated, he was following

their advice, which he felt Mr. Galane would provide

in writing if asked. Dr. Guinn stated that he had to

make a quick decision when approached by an individual

wanting to discuss a settlement. That is why a public

meeting has been called to discuss the matter, and

there is no contract, binding or otherwise, until a

vote is taken by the Board of Regents in a public meet-

ing.



As far as the "cover up", Dr. Guinn stated he did not

understand what Mrs. Price was asking. He stated that

when he was apprised of the contract he had used reason-

ably good judgement in trying to talk with the persons

involved, and then made a decision, because if he had

not he would then be a part of what appeared to be a

"cover up".



As far as including IRS violations, Dr. Guinn stated he

had tried to take positions that he did not take re-

sponsibility, nor did the University, for the Varsity

Club, because it was never approved under the Board's

rules and regulations for foundations to be associated

with the institution. It does not mean that it is il-

legal, because it is a valid Nevada corporation, and

has applied for a 501(c)(3) non-profit standing, but

to his knowledge that has not been granted. If the

organization does not qualify or wishes to disband,

they can, but a statement must be filed in the incor-

poration papers stating where the money has been dis-

bursed and it must go to another 501(c)(3) or other

tax-free organization(s) if the donors wish to use the

amount as a tax deduction.



This is not a question for UNLV under these circum-

stances. However, it would have been so in litigation.

There is a principle of "piercing the corporate veil",

and Dr. Guinn stated that looking at that theory, the

"veil is not very thick".



Mrs. Price's statement continued, "I will be voting no on

the payoff of $1.75 million because such a payoff will

legitimize the circumstances surrounding the secret con-

tract. This will be public money no matter what the

source. Where we spend the public's money is where we

place our values no matter what we claim in our "strategic

direction". I believe we have grounds to release Coach

Massamino without a payoff, and a thorough investigation

will bring about constructive changes in UCCSN's relation-

ship with foundations and address problems of collegiate

athletics outlined in the Knight Commission's Report. A

quote from that report, "I think the temptation is for us

to throw up our arms and say we can't possibly change

this mess ... such a position is pretty feeble in light

of what's happened in Eastern Europe. If the Berlin Wall

can come down, I find it hard to believe we can't deal

with the problems of College athletics." I urge the Board

to vote no.



Signed: Regent Nancy Price



Dr. Guinn corrected, for the record, that the amount was

not $1.75 million, but $1.855 million, which includes all

retirement, fringe benefits, etc. He added that no matter

what one believes, when a person finds himself in a multi-

million dollar discrepancy that is being bound by a 40-plus

page, which he had been told was put together in a very

quick fashion, they are not on the best legal grounds

appropriate for either side.



Dr. Hammargren moved to accept Interim President Guinn's

negotiated buyout with Mr. Massamino rather than fight

whether it was legal or not. Mrs. Berkley seconded.



Chairman Eardley called for public comment at this point.



Mr. David Turner, a UNLV student, on behalf of the students

stated that they want this matter resolved, they want a

Basketball Coach, a positive image for the University, and

for a reasonable cost for the students and the community.

He continued that he is a Senior and since being at UNLV

he has seen two Presidents, two Basketball Coaches and two

Athletic Directors. The students just want this to end.



Mr. Fred Lucas stated that his son graduated from UNLV, his

family has been scholarship donors for 17 years, and he was

very tired of this turmoil, and urged the Board members to

vote in favor of the motion to allow UNLV to get a fresh

start and move forward.



Representing the Student Body President, Tony Johansen,

Student Affairs Director of Student Government, stated she

has seen a great deal of controversy during her student

days, and once again the focus has ceased being on the

education students are receiving at UNLV, but is on basket-

ball. She urged that a balance be brought to the University

between academics and athletics. She urged the Board to

settle the matter and put the focus back on academics.



Mrs. Anna Dawson thanked Dr. Guinn for doing a good job at

UNLV, and stated that she had doubts. She asked the Board

to hold its vote until the Ethics Commission, which was

meeting this date, has made a decision. Dr. Eardley stated

that he has talked with the Chairman of the Ethics Commis-

sion who indicated it would take longer than today's meeting

of that body for a decision to be made.



Chairman Eardley called for a roll call vote:



Aye: Regents Berkley, Gallagher, Graves, Hammargren,

Klaich, Sparks, Whitley



Nay: Regents Derby, Foley, Price



Dr. Eardley indicated he would have voted aye. Motion

carried.



Chairman Eardley thanked Dr. Guinn for his time and effort

on behalf of UNLV.



2. Discussed Hiring of New Basketball Coach



Interim President Guinn stated there is no agreement on the

hiring of a Basketball Coach at this time. Because of

"chemistry" between the persons having to work together, no

decision has yet been made. He stated it was not the job

of the President to hire a Basketball Coach, that his

thrust was to determine whether the person to be hired

could help solve the problems. Discussions were held with

Mr. Tim Grgurich, a former Assistant Coach at UNLV; however,

no agreement has been reached. Dr. Guinn indicated that

the Athletic Department has been in contact with other

individuals as well.



Dr. Guinn stated that it has been difficult because of the

season starting; however, UNLV may have to go with an In-

terim Coach until next March or so.



Dr. Guinn stated that Mr. Jim Weaver, Athletic Director,

has been "very up front", and has worked very diligently

through this whole process.



Dr. Guinn stated he did not feel anyone should be "pushed,

pulled or shoved", or intimidated, that he refused to let

it happen to him. He continued that he has met with

faculty, students, community persons, and untold hours

with the media. He asked that everyone consider the

shortfall discovered at the end of the fiscal year, which

has been solved now. Also, UNLV has had 500 new students

enroll this Fall, and is offering 67 new sections of

classes, with 60 Professors less than June 30, 1994. He

commended the academic staff, the middle management, and

others on the Campus. By applying the formulas, it would

have taken another $3.8 million to accomplish this. It

has been done, and with faculty who have not had an increase

in base salary in over 4 years.



Dr. Guinn stated that when the Tarkanian agreements were

finalized he announced that he would not speak of that

matter again, and he has not. He announced that starting

today, he would not speak to or answer any questions about

the Massamino contract.



Dr. Guinn thanked the Board for their respective votes --

aye or nay -- on the contract this day, and for their sup-

port to him, the institution and the System.



Mrs. Whitley again asked that any new contract for any new

Coach be performanced based. Dr. Guinn assured her that

it would.



Mr. Turner thanked Dr. Guinn and the Regents for their

efforts on behalf of the students, and urged unity for

the Campus.



The meeting adjourned at 11:20 A.M.



Mary Lou Moser

Secretary of the Board

10-19-1994