West Virginia Radio Corp. has filed suit against West Virginia University administrators and members of its board of governors for fraud, collusion and abuse of discretion in multiple business dealings.
The Morgantown-based company owned by John Raese is seeking an injunction to remove multiple parties from the bidding process for multimedia rights for WVU athletics. The case was filed in Monongalia Circuit Court.
Athletic director Oliver Luck, President Jim Clements, the West Virginia Foundation, West Virginia Media Holdings and its owner Bray Cary, and the university board of governors — including board chairman Drew Payne — were named as defendants.
The plaintiff claims that the defendants are guilty of fraud, collusion and abuse of discretion in regards to the purchase of a scoreboard for Milan Puskar Stadium in 2008, the bidding process for the university’s multimedia rights and an investment by the WVU Foundation in West Virginia Media Holdings.
Multimedia rights, also known as third-tier media rights, include the right to broadcast one football game per season, multiple non-conference basketball games, radio rights to football and basketball games, and in-house coaching shows.
The plaintiff is asking that IMG College and West Virginia Media Holdings, LLC. be removed from the bidding process for WVU athletics’ multimedia rights.
Last January, WVU reached a 12-year deal worth more than $110 million with IMG College, but sought legal counsel after the ethics of the deal were questioned.
West Virginia Attorney General Patrick Morrisey reviewed West Virginia’s bidding process and said that, although there was some sloppy work involved, he did not believe WVU intentionally tried anything illegal or inappropriate.
Morrisey recommended the bidding process be redone, and the second round of bids were due in mid-June.
