TSTAN is a deadbeat

coit said:
Where do you think there was a screw-up? TStan took a gamble that OSU wouldn’t come after him for the payment. Perhaps there was some sort of clause in the contract he thought he could exploit to wiggle out of the payment and that OSU would just let it drop. When that didn’t turn out to be the case and the lawsuit was filed or whatever, GT at that point said TStan needed to handle it pronto.

So, they worked a deal where GT would loan him the funds to wrap it up now, and take the loan payments out of his future paychecks.

Seems pretty straightforward to me?
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Agreed, maybe he thought he had found a loophole, but OSU said "really"?
 
Are AD hires treated differently than coaching hires? Because if you poach a coach, you just pay their buyout, anyway. I get that ADs are paid less, though.
 
If I had been him, I would have done the same thing. He is in an industry that buys out, forgives, etc all the time. Maybe they'd be happy with the upfront $1.1M and call it a day?
 
smokey_wasp said:
Are AD hires treated differently than coaching hires? Because if you poach a coach, you just pay their buyout, anyway. I get that ADs are paid less, though.
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That depends on the negotiations between the coach and his new school. The schools don't always pay the buyouts. Just part of the deal to be struck.
 
18in32 said:
"Of course it'll be *me*"
Dang that's funny. I should watch Portlandia sometime.
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Portlandia is good, first few seasons for sure, but some of the recurring skits get a bit repetitive. Jeff Goldblum is on fairly regularly in a couple of funny characters. Lots of musician cameos as well. Did you catch KD Lang in that one?
 
coit said:
Portlandia is good, first few seasons for sure, but some of the recurring skits get a bit repetitive. Jeff Goldblum is on fairly regularly in a couple of funny characters. Lots of musician cameos as well. Did you catch KD Lang in that one?
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She barely looks like her old skinny self.
 
18in32 said:
I've never really understood what Todd was doing on this.
  • Todd was making $500k at OR St. When he quit early he owed them $2.1 mil.
  • Todd was paid $900k at GT, and that went up every year, so this year it was $937,500.
  • Todd received a loan of $1.1 mil from GT when he arrived, that would be forgiven after 5 years.
  • Since he came to Tech (2016), Todd had paid OR St a total of $1 mil on his debt. That left $1.1 mil in principal and another $400k in interest at 9%.
Not to be rude but it looks like Todd gave OR St most of the $1.1 mil he got from Tech, but didn't pay them anything from his salary – which was double what OR St was paying him.

I realize Atlanta is probably more expensive than Beaverton, but still... his income doubled but he didn't put any of his paycheck towards the debt, over a span of three years. I'm not privy to Todd's personal financial circumstances, so perhaps there are other expenses that in his mind were more pressing.

Effectively the deal with the GTAA is just forcing Todd to do what he should've done to begin with – redirecting a substantial portion of his suddenly much-larger salary to paying off the debt that made the larger salary possible.

It's not a great look. I sure hope he wasn't simply trying to stiff OR St on the money he agreed to pay them.
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Every explanation I've tried to think of looks bad for him. If he thought he could try to outlast them like a collections agency, that's particularly stupid. Anybody will sue over this amount of debt. Other scenarios I've tried to think through are back taxes, divorce, bad investments. None look good.

I've heard of coaches making bad choices with their money. Apparently Saban lost a lot of money from the first few years at Alabama. I can forgive something like this more in coaches though, who are not tasked with financial management.
 
floridajacket said:
Every explanation I've tried to think of looks bad for him. If he thought he could try to outlast them like a collections agency, that's particularly stupid. Anybody will sue over this amount of debt. Other scenarios I've tried to think through are back taxes, divorce, bad investments. None look good.

I've heard of coaches making bad choices with their money. Apparently Saban lost a lot of money from the first few years at Alabama. I can forgive something like this more in coaches though, who are not tasked with financial management.
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Pretty sure it was a dispute over how the interest was calculated that was egregious enough that both sides dug there heels in and it ended up being litigated. Nothing more, nothing less.
 
Except it doesn’t appear to have been litigated. The moment Oregon St sued, TStan (or GT) folded, which indicates that he didn’t really have a case.
 
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rghoae said:
Except it doesn’t appear to have been litigated. The moment Oregon St sued, TStan (or GT) folded, which indicates that he didn’t really have a case.
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Pretty much. But it was litigated. Oregon State filed a suit as Plaintiff, naming Todd Stansbury as Defendant, with the clerk of court. It was litigated regardless of what happened after that point. I disagree that Todd didn't have an argument. It's more likely that the difference between what he owed depending on which amortization schedule was used was less than what it would have cost him monetarily, aggravation and reputation capital to carry the litigation forward. So he paid and they withdrew the suit.
 
Vespid said:
Pretty much. But it was litigated. Oregon State filed a suit as Plaintiff, naming Todd Stansbury as Defendant, with the clerk of court. It was litigated regardless of what happened after that point. I disagree that Todd didn't have an argument. It's more likely that the difference between what he owed depending on which amortization schedule was used was less than what it would have cost him monetarily, aggravation and reputation capital to carry the litigation forward. So he paid and they withdrew the suit.
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That's called 'playing chicken.' Not a good look either, IMHO.
 
18in32 said:
That's called 'playing chicken.' Not a good look either, IMHO.
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There you go, assuming things again. Unless you have knowledge that the rest of us don't know, as I've suggested before and you didn't respond to.
 
18in32 said:
I've never really understood what Todd was doing on this.
  • Todd was making $500k at OR St. When he quit early he owed them $2.1 mil.
  • Todd was paid $900k at GT, and that went up every year, so this year it was $937,500.
  • Todd received a loan of $1.1 mil from GT when he arrived, that would be forgiven after 5 years.
  • Since he came to Tech (2016), Todd had paid OR St a total of $1 mil on his debt. That left $1.1 mil in principal and another $400k in interest at 9%.
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I'm gonna quote this from 18in32, because these are the facts that we know.

Additional facts since then:

  • GT and TStan chose not to dispute any of Oregon State's claims, and "settled" by basically paying everything OSU asked for.
  • The amount paid by TStan was only half of the principal amount he owed. So even if there was no interest, he had still only paid 50% of what he owed when he stopped paying
So are any of these facts as stated by 18in32 and added to by me disputed?
 
coit said:
There you go, assuming things again. Unless you have knowledge that the rest of us don't know, as I've suggested before and you didn't respond to.
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I wasn’t assuming anything, I was explaining why that poster’s suggestion didn’t make a lot of sense.
 
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