It wasn’t the kind of history the University of Hawaii envisioned when it announced the hiring of Gib Arnold as its basketball coach amid fanfare in 2010, but his contentious departure now has the possibility of becoming the most expensive exit in the school’s athletic annals.
Arnold’s "without cause" dismissal on Oct. 28 in the midst of an NCAA investigation is already on the way to costing the school upward of $200,000 even before the potentially biggest item, his grievance seeking more than $1.4 million, is addressed.
UH has already paid its outside counsel in the NCAA case — Lightfoot, Franklin & White, LLC of Birmingham, Ala. — $42,329 through January, according to information obtained last week by the Honolulu Star-Advertiser under the state’s open records law.
In addition, UH has contracted to pay local attorney William McCorriston up to $100,000 to represent it in the matter.
Arnold publicly asserted the claim to "over $1.4 million" under terms of his employment agreement in a Feb. 3 statement, citing a provision that he contends entitles him to an amount of severance money equal to what he accrued since the contract began July 1, 2011.
UH and its attorney have disputed the contention, saying NCAA allegations of multiple infractions on Arnold’s watch, classified as "severe" by the NCAA, constituted a violation of the agreement.
Manoa Chancellor Robert Bley-Vroman said in a statement, "The grievance is a distraction and a diversion from the real issue: that the coach may have breached the core obligations of his contract. The central mission of our athletics program and a key responsibility of our coaches is to develop strong character and integrity in our student-athletes. This situation not only undermines this mission as described in the allegations, but the former coach is now apparently attempting to enrich himself at the expense of an already beleaguered program. We will not tolerate behavior that undermines our program, nor can we permit such behavior to be rewarded. We have no alternative but to defend the university and this is a cost that we have to bear."
Bley-Vroman said, "The university will vigorously fight a lawsuit, if filed."
The grievance is said to be in the first of four possible steps before arbitration and the process could, according to officials, take several months to resolve.
Meanwhile, UH had been told by its Alabama counsel that the separate NCAA process "may not be resolved until summer," according to minutes of a Board of Regents executive session in November.
But that "timetable" was based on the assumption that the official notice of allegations from the NCAA would be received by UH before the end of 2014. The notice came Jan. 29, 2015.
Bley-Vroman and UH officials have touted the work of the firm and its lead attorney, William H. King III, who specializes in NCAA infractions cases.
At the time of the firing, athletic director Ben Jay said in a statement, "These painful but critical steps are being taken in an effort to strengthen our athletics program and do right by our student athletes and students in general."
Arnold was named in all seven violations charged by the NCAA last month. Three of the seven were listed as Level I, the most severe of four levels, and the remaining four were categorized as Level II.
Bley-Vroman said, "It was disturbing to see the extent of the allegations."
UH and the coaches cited, Arnold and Brandyn Akana, have 90 days from the notice of allegations to contest the NCAA’s charges.
Meanwhile, the school said it paid Arnold the balance of his $344,000 annual salary, approximately $200,000, on Jan 26. In addition, it is paying former associate coach Benjy Taylor an upgraded salary as Arnold’s replacement.
Taylor, who had been receiving approximately $125,000 as associate, is being paid a prorated monthly salary equal to the lower levels on its salary range for the men’s basketball head coach, UH said.
That range is listed at $185,000 to $400,000.
The most expensive termination chapter in UH athletics was $600,000 to buy football coach Greg McMackin out of the final year of his $1.1 million annual contract.
McMackin was contracted to receive $1.1 million for the 2012 season, but was said to have been pressured to accept $600,000.
Although UH announced McMackin’s departure at the time as a "retirement," former athletic director Jim Donovan later told a state Senate panel, "I was told that I could share with him that there was authority for me to agree to a (buyout) of $600,000 and nothing more and if he didn’t agree to the $600,000 he would be put on leave with pay pending an investigation."
Donovan told the panel he did not know what an investigation would have entailed.
But the biggest settlement at the school remains the 2004 departure of then-UH President Evan Dobelle. What was originally a "for cause" firing was eventually rescinded and, following six weeks of talks, resulted in a settlement of approximately $2.3 million in direct costs to UH.
McCorriston, who was among the attorneys representing UH, said at the time that the school paid, "less than 50 cents on the dollar to get this guy (Dobelle) to resign."
In Arnold’s case, the financial fallout apparently could have even been more substantial. A three-year contract extension with a reported $41,000 raise that would have taken Arnold to $385,000 per year, plus bonuses, through 2018 was said to be ready for signature by former Manoa Chancellor Tom Apple in August.
School policy, officials say, is for the athletic department to be charged for outside attorneys fees and, in the event of a settlement, other incurred costs. For example, UH was assessed more than $300,000 for costs arising from the ill-fated Stevie Wonder concert.
Most expensive UH sports settlements |
Person |
Year |
Job |
Amount |
Gib Arnold |
2015 |
Basketball coach |
$??? |
Greg McMackin |
2012 |
Football coach |
$600,000 |
Herman Frazier |
2008 |
Athletic director |
$312,510 |
Bob Nash |
2010 |
Basketball coach |
$240,000 |
Bob Wagner |
1995 |
Football coach |
$200,000 |
Fred vonAppen |
1999 |
Football coach |
$142,000 |
Source: UH |