CHARLESTON, W.Va. - Morgantown businessman and former U.S. Senate candidate John Raese's business is concerned about the ties between the chairman of the West Virginia University board of governors and another company that does business with WVU.
The head of WVU's board, Drew Payne, is an investor in West Virginia Media. The company airs WVU athletic shows and is reportedly seeking to get a piece of lucrative new contract to broadcast more WVU sports programming.
"I think that is sort of alarming to me," said Robert Gwynne, the executive vice president of Raese's holding company, Greer Industries. "You have him as the chairman of the board of governors, and that's something that should be looked into."
Raese is not a disinterested party. He owns West Virginia Radio Corp.
The radio network has for years controlled the rights to air WVU sports. Those broadcasts are part of the bread and butter of Raese's radio empire.
But now Raese's company could lose out because WVU and North Carolina-based media firm IMG College are working on a 12-year deal to manage the university's so-called Tier 3 media rights, which includes radio. That deal could carry an overall value of $110 million for the firm.
Another media mogul, Bray Cary, is reportedly seeking a piece of that deal. Cary runs West Virginia Media, which could become an IMG subcontractor.
Payne is an investor in Cary's West Virginia Media.
Now, Raese plans to send a letter that raises a number of concerns about the pending deal, Gwynne said.
"We are closely watching this process," Gwynne said in a telephone interview Thursday. "Obviously over a long period of time, basically 73 years except for two seasons, we have managed those rights for the West Virginia athletic department."
Raese's letter is expected to go to WVU President Jim Clements, Republican Attorney General Patrick Morrisey and David Raese, who is John Raese's brother and business partner and the publisher of the Morgantown Dominion Post.
Payne dismissed the whole thing.
"John Raese has proved his ass over the years and this is nothing new," Payne said in a telephone interview Thursday.
Raese - a Republican who has run unsuccessfully a handful of times for elected office - has made sometimes-controversial remarks on the campaign trail. Last year, when he was running for U.S. Senate, Raese compared anti-smoking signs in Monongalia County to a key part of the Holocaust.
Payne, for his part, said he and the board have "stayed completely away" from the new sports rights contract.
"John Raese has had a very lucrative deal up there with West Virginia Radio and he is trying to protect it," Payne said.
Payne said the contract that is being negotiated between WVU and IMG would net the university $5 million more a year than the university's current contract with Raese's company.
"He is sitting there trying to destroy me for something I have nothing to do with that the university is making $5 million more a year on," Payne said.
But Payne did appear to have some knowledge of the relationship among West Virginia Media, WVU and IMG.
For instance, Payne said Raese's radio network could still end up involved in the IMG deal - if only because Raese happens to own a bunch of radio stations across the state.
"You've got to have radio involved and they've got all the radio stations," Payne said, referring to Raese's company. "I don't know why they'd jump my ass for something."
Payne said West Virginia Media decided not to bid on the whole package because they were going to try to partner for a piece of the larger contract with whoever won it - in this case, the winner is likely to be IMG.
Asked why he did not dump his interest in the privately held company to avoid the appearance of a conflict, Payne said, "I don't have anybody to sell it to."
Payne said he welcomed any examination of the deal.
"Hell, they can take Booth Goodwin up there," Payne said, referring to the federal prosecutor in the southern part of the state. "They can put people under oath as far as I'm concerned."
Cary did not reply to an email seeking comment.
Couple of things... First of all Rease doesnt own the rights.. .actually WVU owns the rights... Reases company contracts the rights..
secondly if he is on BOG he should have excused himself from all dealings with the rights...
Good points in both post....but in WVU's case and what it boils down to is, could they not operate like UMD because of these people? I mean if you think about it we are way behind in the race when it comes to this, for many reasons, but this may have been a bigger factor than we knew previously.
I do not know if any of these people did anything wrong and it does not seem to be heading in that direction, just food for thought.
I would not be allowed to buy nuts and bolts from my brother's hardware store, EVEN if he had the lowest price, makes little sense, BUT it is today's way of doing business.
since we live in a world of bottom dollar trumps everything, some companies do not mind the ties as long as there is open season for bids, and that the person with the relation to the company is not involved in the decision process. I think what was happening before was a person with direct influence to the decision owned the the store where a contract was being negotiated, gave a huge discount at the beginning and then increased prices as the company became more comfortable with the deal, this earning a lot of $$$$. Different situations out there so hard to apply it everywhere.
Payne, for his part, said he and the board have "stayed completely away" from the new sports rights contract.
Payne said the contract that is being negotiated between WVU and IMG would net the university $5 million more a year than the university's current contract with Raese's company.
For instance, Payne said Raese's radio network could still end up involved in the IMG deal - if only because Raese happens to own a bunch of radio stations across the state.
"You've got to have radio involved and they've got all the radio stations," Payne said, referring to Raese's company. "I don't know why they'd jump my ass for something."
"Hell, they can take Booth Goodwin up there," Payne said, referring to the federal prosecutor in the southern part of the state. "They can put people under oath as far as I'm concerned."
Although a strong stance on an issue doesn't necessarily infer innocence... Lance Armstrong comes to mind... he seems pretty sure he has done nothing improper.
Who IMG awards their contract to for broadcasts... will involve WVU... but, I don't know that WVU is involved in the negotiations between IMG and WV Media or Greer Industries.
Payne is not involved with IMG. Six degrees...
CHARLESTON, W.Va. -- West Virginia University Board of Governors Chairman Drew Payne said Thursday he never asked WVU Athletic Director Oliver Luck or anyone else to award a lucrative media rights contract that Payne could benefit from financially.
Payne said he never meddled in a WVU panel's decision to sign a tentative agreement with Winston Salem, N.C.-based IMG College, which is expected to partner with West Virginia Media Holdings. Payne serves on West Virginia Media's board of directors and formerly held a major stake in the Charleston-based media firm.
"I didn't care who got the contract," Payne told the Gazette during an interview at his downtown Charleston office Thursday afternoon. "I wasn't involved in any way, shape or form."
Payne said Luck led the push to bid out the university's third-tier media rights -- now handled by Mountaineer Sports Network, which was operated by WVU.
"Oliver handled this. He thought we should bid it out," Payne said. "Oliver drove this."
Luck headed a six-member committee that reviewed bids for the media rights contract and recommended IMG. The university and IMG have signed a non-binding agreement, and the deal is expected to be finalized later this month.
Payne said he has talked to Luck about the contract, but nobody else.
"I purposefully stayed away from this," Payne said. "You can ask anyone on that committee if I called them or tried to pressure them. I have not."
Payne said WVU would make $5 million a year under the new contract with IMG.
"The winner is WVU," he said. "They're getting $5 million more every year. And I did something wrong? I don't believe so."
Payne said Cary and IMG College President Ben Sutton Jr. are longtime acquaintances.
They both started out as sports media entrepreneurs in North Carolina. Sutton founded ISP Sports, which was purchased by IMG, a global sports media conglomerate, in 2010. Cary founded a Charlotte, N.C.-based company called Creative Sports, which syndicated televised coverage of college football and basketball games. Cary sold the company to ESPN in 1994.
Payne said it makes sense for West Virginia Media to partner with IMG.
West Virginia Media already produces weekly television shows for WVU football coach Dana Holgorsen and men's basketball coach Bob Huggins. The Charleston-based media company also televised WVU's Blue-Gold football scrimmage in April.
West Virginia Media owns four television stations in the state, and publishes the State Journal newspaper.
"They have a leg up because they have television stations throughout the state and because of all the resources and capital they have," Payne said.
Nine companies bid on the WVU media rights contract.
Payne said West Virginia Media would have tried to partner with the other companies, if IMG hadn't won the contract.
He said IMG College subcontracts with smaller media companies on its media contracts with other universities across the U.S.
IMG partners with Bristol Broadcasting on a contract with Marshall University, he said.
"IMG just acts as the clearinghouse," Payne said Thursday.
Payne said he held a major stake in West Virginia Media until last year, when the company paid off a loan from him. He said he now has "less than $500,000" invested in West Virginia Media.
"It's not a major part of my investment portfolio," said Payne, who also is president of Payne-Gallatin Co. and Horse Creek Land & Mining Co. "West Virginia Media doesn't even pay a dividend. We haven't gotten a dividend in 10 years."
Payne said that WVU was one of only two universities -- the other being Michigan State University -- that didn't have a third-tier media rights partner.
"We've let everybody else figure this out and get it right," Payne said. "We're the last one to do it. I care about the university, and I'm for anything that will make it better."
The third-tier contract -- valued at more than $110 million over 12 years -- covers radio broadcast rights, and television rights for some non-conference football and basketball games. The contract also covers television coverage of non-revenue sports, coaches' shows, signage, online content, game-day magazine print rights and seatback sales.
On Thursday, Payne confirmed that IMG was in talks with West Virginia Media as a potential partner on the deal with WVU. Payne said chances were "good" that IMG and West Virginia Media would reach an agreement.
"But as of this [Thursday] morning, they didn't have it yet," Payne said.
Payne said he wasn't privy to the negotiations, which are being handled by West Virginia Media President Bray Cary.
"I don't ask," Payne said. "I'm not updated. It's none of my business."
Payne said Cary and IMG College President Ben Sutton Jr. are longtime acquaintances.
They both started out as sports media entrepreneurs in North Carolina. Sutton founded ISP Sports, which was purchased by IMG, a global sports media conglomerate, in 2010. Cary founded a Charlotte, N.C.-based company called Creative Sports, which syndicated televised coverage of college football and basketball games. Cary sold the company to ESPN in 1994.
Payne said it makes sense for West Virginia Media to partner with IMG.
West Virginia Media already produces weekly television shows for WVU football coach Dana Holgorsen and men's basketball coach Bob Huggins. The Charleston-based media company also televised WVU's Blue-Gold football scrimmage in April.
West Virginia Media owns four television stations in the state, and publishes the State Journal newspaper.
"They have a leg up because they have television stations throughout the state and because of all the resources and capital they have," Payne said.
Nine companies bid on the WVU media rights contract.
Payne said West Virginia Media would have tried to partner with the other companies, if IMG hadn't won the contract.
He said IMG College subcontracts with smaller media companies on its media contracts with other universities across the U.S.
IMG partners with Bristol Broadcasting on a contract with Marshall University, he said.
"IMG just acts as the clearinghouse," Payne said Thursday.
Payne said he held a major stake in West Virginia Media until last year, when the company paid off a loan from him. He said he now has "less than $500,000" invested in West Virginia Media.
"It's not a major part of my investment portfolio," said Payne, who also is president of Payne-Gallatin Co. and Horse Creek Land & Mining Co. "West Virginia Media doesn't even pay a dividend. We haven't gotten a dividend in 10 years."
Payne said that WVU was one of only two universities -- the other being Michigan State University -- that didn't have a third-tier media rights partner.
"We've let everybody else figure this out and get it right," Payne said. "We're the last one to do it. I care about the university, and I'm for anything that will make it better."
Luck headed a six-member committee that reviewed bids for the media rights contract and recommended IMG.
Payne said West Virginia Media would have tried to partner with the other companies, if IMG hadn't won the contract.
He said IMG College subcontracts with smaller media companies on its media contracts with other universities across the U.S.
IMG partners with Bristol Broadcasting on a contract with Marshall University, he said. "IMG just acts as the clearinghouse," Payne said Thursday.
