NCAA FB

Okla St loses bid to regain $33M from fundraiser

Share This Story

   
 

STILLWATER, Okla. (AP)

Oklahoma State's unique fundraiser was expected to bring in hundreds of millions of dollars to fund school sports, based on the idea of purchasing $10 million life insurance policies on about two dozen boosters with the university as a beneficiary.

Instead, the so-called ''Gift of a Lifetime'' program created on the advice of top booster T. Boone Pickens has ended with Oklahoma State having spent $33 million with nothing to show for it.

A federal judge has ruled against Oklahoma State's bid to get back the money it spent on premiums as part of the fundraising idea launched in 2007 with 27 boosters agreeing to have life insurance policies taken out that would pay the school when they died. Judge Jorge A. Solis in Dallas ruled Friday that Lincoln National Life Insurance Co. should keep the premiums it received from Oklahoma State as the first two yearly payments for the policies.

''We are surprised and disappointed with the judge's ruling,'' Oklahoma State spokesman Gary Shutt said Monday. ''We are reviewing the opinion and assessing our options, including a possible appeal.''

The university still has a state lawsuit pending in Payne County.

Oklahoma State claimed in court filings that it was told it could make as much as $350 million through the program. Instead, OSU nixed the program about three years ago and then sued to try and regain premiums it had already paid.

The university argued that it had a right to cancel the policies and get its money back because Oklahoma law provides for a 10-day review window after policies are purchased and Lincoln did not provide actual copies of the policies until 2009.

However, athletic director Mike Holder signed policy delivery receipt forms two years earlier and didn't ask to see full copies from Lincoln, which had kept them. Oklahoma State proceeded to pay the premiums of over $16 million for the next two years before attempting to back out of the plan.

Solis ruled that Holder technically had received the policies on behalf of Cowboy Athletics Inc., the private foundation run by OSU's athletic department.

''It was Holder's own decision not to read the legal documents he signed and to not read the policies. Based on these documents, both Lincoln and Cowboy subsequently treated the issued Policies as valid and they both performed under the contracts,'' Solis wrote in his ruling. ''For Cowboy to now claim breach of contract based on an alleged failure of delivery of the Policies would itself be inequitable.''

The insurance company and brokers argued that the plan fell apart because Oklahoma State rushed into it without first arranging financing to pay for the premiums.

Attorneys produced a paper trail from Holder's emails with him writing once that if it wasn't done soon as Pickens wanted, ''I will be in a cave with Bin Laden.''

The school was unwilling to use Pickens' $165 million donation to the athletic department as collateral on a loan, and that fund eventually took a hit when the economy soured. Pickens eventually had to make another donation just to complete renovations to the football stadium.

Solis ruled that the brokers had not misled Oklahoma State, and instead the university ''chose to proceed despite warnings from its advisers regarding mortality rates and statistical sampling error and warnings from the Brokers concerning the absence of long term financing.''

Tagged: Oklahoma State, Oklahoma

Related Stories

Member Comments

Please note by clicking on "Post comment" you acknowledge that you have read the Terms of Use and the comment you are posting is in compliance with such terms. Be Polite. Inappropriate posts may be removed by the moderator.

powered by

College Football Pick'em on FOX


NCAA FB Videos

Sumlin annoyed by media's Manziel questions Posted: Jul 16, 2014
Kevin Sumlin responds to questions about life after Johnny Football by toying wi...

AJ Pasquale's journey back to UCLA Posted: Jun 17, 2014
UCLA football ops intern AJ Pasquale describes his own personal journey after th...

Winston issued adult civil citation Posted: Apr 30, 2014
Get the latest news surrounding Jameis Winston's recent shoplifting fiasco.

Get Inside the Locker Room with Scout.com

More Than Sports on MSN

Fox Sports Store

    itemName itemURL imageSrc price itemDescription
    Nike Florida Gators Gridiron 2012 Team Issue T-Shirt - Royal Blue http://shop.foxsports.com/FOX_Florida_Gators/browse/featuredproduct/759777/source/foxsports_prsp_ca http://images.footballfanatics.com/FFImage/thumb.aspx?i=/productImages/_759000/ff_759777_xl.jpg&w=100 24.95 Nike Florida Gators Gridiron 2012 Team Issue T-Shirt - Royal Blue
    Nike Michigan State Spartans Football 2012 Team Issue T-Shirt - White http://shop.foxsports.com/FOX_Michigan_State_Spartans/browse/featuredproduct/760171/source/foxsports_prsp_ca http://images.footballfanatics.com/FFImage/thumb.aspx?i=/productImages/_760000/ff_760171_xl.jpg&w=100 24.95 Nike Michigan State Spartans Football 2012 Team Issue T-Shirt - White
    Nike USC Trojans Fight On My School T-Shirt - Cardinal http://shop.foxsports.com/FOX_USC_Trojans/browse/featuredproduct/761373/source/foxsports_prsp_ca http://images.footballfanatics.com/FFImage/thumb.aspx?i=/productImages/_761000/ff_761373_xl.jpg&w=100 24.95 Nike USC Trojans Fight On My School T-Shirt - Cardinal
    Nike Alabama Crimson Tide Elite Force Coaches Sideline Performance Polo - Crimson http://shop.foxsports.com/FOX_Alabama_Crimson_Tide/browse/featuredproduct/829709/source/foxsports_prsp_ca http://images.footballfanatics.com/FFImage/thumb.aspx?i=/productImages/_829000/ff_829709_xl.jpg&w=100 64.95 Nike Alabama Crimson Tide Elite Force Coaches Sideline Performance Polo - Crimso..
    Nike LSU Tigers Elite Force Coaches Sideline Performance Polo - Purple http://shop.foxsports.com/FOX_LSU_Tigers/browse/featuredproduct/829740/source/foxsports_prsp_ca http://images.footballfanatics.com/FFImage/thumb.aspx?i=/productImages/_829000/ff_829740_xl.jpg&w=100 49.99 Nike LSU Tigers Elite Force Coaches Sideline Performance Polo - Purple
    Nike Oklahoma Sooners Legacy 91 Dri-FIT Adjustable Coaches Cap - Crimson http://shop.foxsports.com/FOX_Oklahoma_Sooners/browse/featuredproduct/830935/source/foxsports_prsp_ca http://images.footballfanatics.com/FFImage/thumb.aspx?i=/productImages/_830000/ff_830935_xl.jpg&w=100 21.95 Nike Oklahoma Sooners Legacy 91 Dri-FIT Adjustable Coaches Cap - Crimson
    adidas Notre Dame Fighting Irish Hot Sideline Jacket - Navy Blue http://shop.foxsports.com/FOX_Notre_Dame_Fighting_Irish/browse/featuredproduct/861243/source/foxsports_prsp_ca http://images.footballfanatics.com/FFImage/thumb.aspx?i=/productImages/_861000/ff_861243_xl.jpg&w=100 69.95 adidas Notre Dame Fighting Irish Hot Sideline Jacket - Navy Blue
    adidas Nebraska Cornhuskers Sideline Hot Quarter Zip Jacket - Scarlet http://shop.foxsports.com/FOX_Nebraska_Cornhuskers/browse/featuredproduct/861247/source/foxsports_prsp_ca http://images.footballfanatics.com/FFImage/thumb.aspx?i=/productImages/_861000/ff_861247_xl.jpg&w=100 69.95 adidas Nebraska Cornhuskers Sideline Hot Quarter Zip Jacket - Scarlet
    Nike Alabama Crimson Tide 2012 BCS National Champions Players Locker Room Snapback Hat - Charcoal/Black http://shop.foxsports.com/FOX_Alabama_Crimson_Tide/browse/featuredproduct/1087345/source/foxsports_prsp_ca http://images.footballfanatics.com/FFImage/thumb.aspx?i=/productImages/_1087000/ff_1087345_xl.jpg&w=100 29.95 Nike Alabama Crimson Tide 2012 BCS National Champions Players Locker Room Snapba..
    Nike Alabama Crimson Tide 2012 BCS National Champions Locker Room T-Shirt - Ash http://shop.foxsports.com/FOX_Alabama_Crimson_Tide/browse/featuredproduct/1093431/source/foxsports_prsp_ca http://images.footballfanatics.com/FFImage/thumb.aspx?i=/productImages/_1093000/ff_1093431_xl.jpg&w=100 24.95 Nike Alabama Crimson Tide 2012 BCS National Champions Locker Room T-Shirt - Ash