LOUISVILLE, Ky. – The University of Louisville responded this past week to a Notice of Allegations from the NCAA about the men’s basketball program’s involvement in an alleged pay-for-play scandal from 2017.
What You Need To Know
- ALLEGATION NO. 1 (Level I) – Claims UofL is responsible for a series of unlawful payments Adidas representatives made to a person whose name is redacted and Florida-based AAU basketball coach Brad Augustine. The school claims the representatives were not acting on behalf of UofL’s athletic interests and the school cannot be held responsible for their misconduct “simply because the university has a standard sponsorship agreement with Adidas.”
- ALLEGATION NO. 2 (Level II) – Alleges assistant coaches Jordan Fair and Kenny Johnson “committed a handful of disparate recruiting violations'' relating to the recruitment of two players whose names have been redacted. The response states UofL has already self-reported that Johnson made impermissible contact with one of the recruits in July 2016 and that Johnson and Fair improperly provided transportation to agent Christian Dawkins and Augustine during unofficial campus visits. “Given the relative lack of severity, the acts alleged in allegation No. 2 should be categorized as Level III,” according to the response.
- ALLEGATION No. 3 (Level II) – Contends former Head Coach Rick Pitino failed to promote an atmosphere of compliance during the six-day period the university was recruiting Brian Bowen in the spring of 2017. “The university agrees Pitino should have informed the compliance staff of Adidas representative James Gatto’s phone call,” according to the response. “But his failure to do so did not constitute a failure to promote an atmosphere of compliance within his or her program.”
- ALLEGATION No. 4 (Level II) – States UofL failed to adequately monitor the recruitment of a player whose name is redacted. “Again, the university is not responsible for the conduct of Merl Code, James Gatto, or their co-conspirators,” according to the response.
UofL’s response challenges most of the allegations, which date back to 2016, and university spokesperson John Karman said the school believes the claims are not supported by facts or NCAA bylaws.
“Over the past three years, the University of Louisville initiated multiple and extensive corrective measures in response to the federal indictment which served as the genesis of the NCAA’s case, beyond those of any other university,” Karman said. “UofL has unilaterally undertaken several significant actions to ensure all who are involved in Cardinal Athletics fully support a culture of compliance. The University looks forward to the resolution of this matter.”
The 104-page response to the allegations addresses claims of one Level I and three Level II violations. The more serious charge is the Level I accusation alleging a group affiliated with sports apparel company Adidas, while acting as representatives of Louisville, made a $100,000 impermissible recruiting offer to the family of prospect Brian Bowen, with $25,000 actually being exchanged. Also, assistant coaches Jordan Fair and Kenny Johnson were charged with unethical conduct for offering money to people associated with basketball recruits.
UofL’s response claims that beginning in 2015, Adidas head of global sports marketing James Gatto and two Adidas consultants, Merl Code and Thomas Gassnola, organized a conspiracy to defraud several Division I institutions with which Adidas had sponsorship agreements. Their plan was to pay prospective and enrolled student-athletes and their families in exchange for commitments to attend Adidas-sponsored schools, with the aim of ensuring the student-athletes entered
lucrative sponsorship agreements with Adidas at the conclusion of their collegiate careers.
The school’s response states the scheme aided by Christian Dawkins, a business manager for professional athletes, and Munish Sood, a financial advisor, who assisted Gatto and Code in directing payments to prospective and enrolled student-athletes
with the aim of signing these players as clients when they turned professional, was not related to the university.
Gatto, Code and Dawkins were ultimately arrested and indicted by a grand jury in the Southern District of New York in September of 2017 on two counts of write fraud and one count of conspiracy to commit wire fraud. Gassnola and Sood agreed to plea deals.
The Level Two charges include impermissible contact – not monitoring recruitment properly – and former head coach Rick Pitino was charged with failure to promote an atmosphere of compliance.
The school’s response, which contained hundreds of redacted names, claims the group of conspirators affiliated with Adidas should not be considered representatives of the school – that it is a business relationship and attributing more value to the relationship would mean a school could be held responsible for the behavior of every employee of every corporate partner.
The response argues the Adidas representatives were found guilty in federal court of committing crimes against the University of Louisville and not on its behalf.
“Once this load-bearing pillar of the enforcement staff’s argument is knocked away, little is left of its case,” it is stated in the response. “The NCAA enforcement staff now seeks to turn that fraud conviction on its head. This argument is as novel as it is wrong. The co-conspirators engaged in a reprehensible course of misconduct. But the enforcement staff’s effort to hold the University responsible is severely misplaced. The University was a victim of the conspiracy, not a participant in it.”
UofL acknowledges former assistant Jordan Fair was in a meeting where illegal payments were discussed, but claims he did not participate in the discussion and made no offers himself. Fair’s lack of reporting the meeting was an ethical violation, but not a level one violation.
The school also disputes the facts of whether Kenny Johnson gave money to Bowen’s father, arguing there is no proof of payment so it is a matter of conflicting accounts and Johnson is more credible than Bowen Sr.
The response claims Pitino promoted an atmosphere of compliance and did nothing wrong in the six-day period of Bowen’s recruitment, contradicting claims the school made when it was fighting a $40 million lawsuit he filed after he was fired.
Current basketball coach Chris Mack released a statement after the Notice of Allegations was received, saying he is confident in the university and its plans to fight back.
“Since arriving at Louisville, I have seen up close the incredible changes that have taken place under the leadership of President Bendapudi and Director of Athletics Vince Tyra in our university and in our athletics department,” Mack said. “The shared values and commitment to integrity is evident in their actions and has always been demanded in the programs that my staff and I have led. While I understand the allegations brought today, I am confident that the university will do what is right, which includes fighting back on those charges that we simply do not agree with, and for which the facts do not substantiate. The future is bright for Cardinal Basketball. Our focus will continue to be on our tremendous student-athletes.”
UofL President Neeli Bendapudi and Vice President of Athletics Vince Tyra said the charges are not factually accurate. Tyra said the investigation is ongoing and he does not expect it to be over before the 2021 basketball tournament next March. Both Tyra and Bendapudi said the school will not self-impose any more penalties.
The NCAA has not responded to UofL's response.