K-State may have another buyout
Kansas State must reinstate Jim Epps as its deputy athletic director or face the prospect of another expensive buyout.
Records obtained by The Topeka Capital-Journal show that Epps would be owed the remaining value of a five-year contract he signed in 2008 should he be terminated without cause, a buyout worth roughly $900,000 as it stands.
Epps, who was placed on indefinite administrative leave last week by new athletic director John Currie, earns $225,000.01 annually under the five-year agreement that took effect in June 2008. In the event of early termination, Epps would be entitled to the full salary through June 2013.
Max Urick, a former athletic director at K-State and Iowa State, said it was unusual for an associate AD to receive a multi-year contract.
“There would have to be some really compelling reasons for that to take place,” said Urick, who directed K-State’s athletic department from 1993-2001. “That doesn’t mean it doesn’t take place, but it is unusual in my opinion, and there would have to be some very compelling reasons for that to occur.”
Asked if he could envision a scenario in which such a deal would be warranted, Urick replied, “Nothing comes to mind quickly. If someone is that outstanding, then maybe they ought to be the athletic director.”
Epps’ contract is the latest in a string of expensive deals brokered during Bob Krause's tenure as athletic director. Krause's predecessor, Tim Weiser, received a $1.9 million settlement from the university, and K-State recently discovered an agreement that would pay former football coach Ron Prince $3.2 million on top of the $1.2 million buyout written into his contract. The university has filed suit seeking to invalidate the agreement.
Research conducted by The Capital-Journal revealed that the University of Kansas does not give contracts to its associate athletic directors, but K-State attorney Jacque Butler said Epps' agreement was not out of the ordinary for K-State.
“I don’t really have a comment on that,” she said. “I wouldn’t say it’s unusual, I guess. I’ll just tell you, some employees have addendums and some don’t.”
The five-year contract was written in the form of an employment addendum to Epps’ one-year term appointment and signed by Epps, Krause and former president Jon Wefald.
Butler declined to comment on K-State’s potential liability should Epps be terminated as deputy AD.
“I don’t want to be giving any kind of legal interpretation of the contract,” Butler said. “I think that puts me at odds with my duties to my client.”
Doug Fincher, a Topeka lawyer asked to provide an independent interpretation of the deal, verified that the agreement appears to commit K-State to the remaining balance of Epps’ salary unless he is fired for cause.
“If the termination were deemed to be not ‘for cause,’ then they would essentially be paying him as if he were an employee until June 14, 2013,” Fincher said. “Under the agreement, it’s not really clear what ‘for cause’ means in this instance. “Lots of times employers, for purposes of certainty, will want to very clearly define what a ‘for cause’ event means. Otherwise, you leave it to the courts or some other arbiter to figure out whether or not the termination event was truly for cause or without cause.”
The term appointment does list certain actions that could result in suspension without pay or termination, including NCAA violations, criminal convictions or “any conduct that constitutes moral turpitude, or which would tend to bring public disrespect, contempt or ridicule upon Kansas State University.”
Epps’ future at the university was cast into doubt when he and associate AD Bob Cavello were placed on paid leave last week. Currie said the decision to suspend the two longtime administrators was not based on concerns of misconduct but declined further comment. Epps did not return a phone message.
Epps, a 30-year veteran of K-State’s athletic department, has served in the deputy AD role since April 2008. The position gave Epps responsibility for the day-to-day operations of the department as Krause’s second-in-command.
The employment addendum does not address the possibility of reassigning Epps to another position within the department, but Fincher said it’s possible K-State would owe the full value of the contract regardless.
“Looking at the contract, it appears that K-State and Epps have agreed that if his employment specifically as deputy director of athletics is terminated, that’s the triggering event,” Fincher said. “The contract doesn’t clearly provide that they could reassign him somewhere laterally within the administration and not trigger that early termination provision.”
A request for Cavello’s contract returned only a one-year term agreement under which he received a base salary of $120,854. Butler said there were no other financial agreements in place for Cavello.
