Rutgers to Probe Athletics Division

NJBIZ, Aug 4, 2008

Rutgers University President Richard L. McCormick last week launched a review of the functioning of its intercollegiate athletics division, attributing the evaluation to "recent events and reports that have raised questions about the athletics program at Rutgers-New Brunswick."

The Star-Ledger reported last week that Robert E. Mulcahy, the university's director of athletics, had approved "a lucrative, no-bid contract" that Rutgers negotiated with Nelligan Sports Marketing, Inc. of Little Falls, which has employed the director's son, Robert J. Mulcahy, as a vice president. T. J. Nelligan, chairman of Nelligan Sports Marketing, says his firm signed the agreement with Rutgers in February 2000, and hired Mulcahy's son in March 2000 after checking with Rutgers "if it would be appropriate to hire him to run a different division." The younger Mulcahy worked at Nelligan Sports until November 2000, he adds.

Rutgers signed its original contract with Nelligan to sell sports sponsorship packages in April 2001, and renewed it several times. The current contract expires in fune 20 17, according to a university statement. Rutgers termed its relationship with Nelligan "extremely successful" and said it earned sponsorship revenue of $4 million in the 2007-08 season.

Greg Trevor, a Rutgers spokesman, said the university's Office of General Counsel had reviewed the original contract before it was signed and "did not find a violation of the state's conflict of interest statute."

McCormick said the committee would conduct a "complete and candid review" and look into "the transparency of transactions and information, [and] contracts and relationships with sports marketing firms," among other things.

McCormick named Al Koeppe, former PSE&G president, and Albert Gamper, Jr., former chairman of CIT Group, Inc., as co-chairs of the review committee, and said other members would be named shortly. The group's report is due in the fall. - Shankar P.