Rutgers Payout: Mike Rice, Tim Pernetti to Collect $1M Each After Departure

Monday, 08 Apr 2013 12:50 PM

By Alexandra Ward

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Image: Rutgers Payout: Mike Rice, Tim Pernetti to Collect $1M Each After Departure
May 6, 2010 photo of Rutgers University Athletic Director Tim Pernetti, right, presents Mike Rice with a jersey after being introduced as the new men's head basketball coach at Rutgers.
Men's basketball coach Mike Rice and athletic director Tim Pernetti, the two men embroiled in the Rutgers University basketball player abuse scandal, will each receive more than $1 million as part of their settlements.

Pernetti will receive more than $1.2 million in return for his resignation, while Rice will reportedly receive more than $1 million, according to The Star-Ledger

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Rice was fired by Rutgers last week after a slew of public outcry over a video of a November practice that showed him shoving, grabbing, throwing basketballs, and yelling gay slurs at his players. The video was reportedly brought to Pernetti's attention months ago, but after an internal investigation, Rice was only suspended for three games, fined $50,000, and ordered to undergo anger management classes.

Pernetti was widely criticized for not taking more drastic action when he first saw the video in November. He resigned last week just two days after firing Rice.

"My first instincts when I saw the videotape of Coach Rice's behavior was to fire him immediately," Pernetti wrote to Rutgers President Robert Barchi Friday. "However, Rutgers decided to follow a process involving university lawyers, human resources professionals, and outside counsel. Following review of the independent investigative report, the consensus was that university policy would not justify dismissal. I have admitted my role in, and regret for, that decision, and wish that I had the opportunity to go back and override it for the sake of everyone involved."

Assistant basketball coach Jimmy Martelli and John Wolf, the university's general counsel, were also removed from their positions last week in connection with the scandal, according to The Star-Ledger.

Pernetti signed his buyout deal Friday morning, a package that reportedly entitles him to his full base contractual salary, annualized at $453,000 through June 2014 — in addition to any bonuses based on the academic progress of students, financial goals, and competitive success of any of the school's revenue sports, according to the term sheet obtained by The Star-Ledger.

Pernetti will also receive another lump-sum payment equivalent to another year and a half of salary, as well as a $12,000 annual automobile allowance through next summer. He will also be able to keep his university-issued iPad and laptop computer.

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Under the terms of his contract, Rice is eligible for 75 percent of what he would have been paid under the final two years of his contract. He was to receive $700,000 this year, and $750,000 next year, not including incentive bonuses. The total payout is estimated at about $1.1 million.

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