The University of Colorado will spend $918,000 to buy out the remainder of athletic director Mike Bohn’s contract, according to the separation agreement.
In exchange, Bohn — who had three years left on his contract — promises not to sue the university, according to the document.
Athletic department revenue will pay for the buyout, but the auxiliary department may need to once again borrow money from the campus to pay for the expense. CU-Boulder spokesman Bronson Hilliard said university officials expect to know within a month whether a loan will be needed. The school begins its new fiscal year July 1.
The athletic department owes the campus and CU system about $22 million, with the majority of that debt — about $16 million — related to the move from the Big 12 Conference to the Pac-12.
No tuition or taxpayer money will be used for the buyout, CU Chancellor Phil DiStefano said at a news conference Wednesday afternoon.
The money will be paid out in three even installments of $306,000 on July 1, Jan. 1, 2014, and Jan. 1, 2015, according to the agreement. The university will not make retirement contributions on behalf of Bohn, according to the document.
Under the contract, Bohn will get a lifetime of eight season tickets to CU football games, as well as men’s basketball and women’s basketball games.
The settlement requires that Bohn return his university-owned vehicle by June 3 and his cell phone and iPad by June 15, according to the documents.
DiStefano accepted Bohn’s resignation Tuesday and named Ceal Barry the interim athletic director beginning June 3.
At the news conference Wednesday, DiStefano emphasized that it was his decision to part ways with Bohn and said the buyout was an investment in the long-term success of the athletic department.
“Spending money is something that I think we had to do to get where we want to be in the long term,” DiStefano said.
Last fall, the athletic department took out its third loan in seven years from the university to pay for the roughly $2.4 million it cost to fire football coach Jon Embree and part ways with offensive coordinator Eric Bieniemy. Other athletic department separation agreements in recent years included a $2 million buyout of former head coach Dan Hawkins’ contract in 2010 and a roughly $3 million buyout of Gary Barnett’s contract at the end of the 2005 season. CU and former head women’s basketball coach Kathy McConnell-Miller reached a $371,280 settlement in 2011.
While the school has given no specific reason for the breakup with Bohn, the well-documented struggles of the football program, continued athletic department financial problems, little progress in fundraising and conflicting leadership styles with his bosses are believed to be the core issues that led to Bohn being forced out.
“The parties mutually agree, under the circumstances, that it is in the best interests of Bohn and the university to sever the employment relationship,” the contract says. “Bohn agrees to resign his employment and the university wishes to accept his resignation.”
The contract goes on to say the university wants new leadership for the athletic department, but Bohn “has not engaged in any impropriety, NCAA rule violations, university policy violation or any immoral, dishonest, or other conduct which in the reasonable judgment of the chancellor of the university falls below the minimum standards of professional integrity.”
Contact Camera Staff Writer Brittany Anas at 303-473-1132 or anasb@dailycamera.com.
