October 19-20, 1994
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
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
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
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'
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-
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,
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
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
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
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'
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
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-
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-
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
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
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
Mr. Turner thanked Dr. Guinn and the Regents for their
efforts on behalf of the students, and urged unity for
The meeting adjourned at 11:20 A.M.
Mary Lou Moser
Secretary of the Board