Athletics comes under scrutiny over Pit suites
University continuing review that found ‘inconsistencies’ in contracts
ALBUQUERQUE — The University of New Mexico is instituting new controls and oversight of athletics department finances as it continues a review that has found “inconsistencies” in contracts for basketball arena suites, the university said Monday.
A top university administrator, Chris Vallegos, will head efforts to evaluate and improve the department’s financial management while working with the recently appointed acting athletic director, interim President Chaouki Abdallah said in a statement.
Janice Ruggiero was appointed acting athletic director last month following the departure of Paul Krebs, who retired effective June 30.
With Krebs at the helm of the school’s athletic department, the school operated with an annual sports budget of approximately $30 million to $34 million. In most years under Krebs the department reported deficits that exceeded the annual budget.
Men’s and women’s basketball along with football are considered UNM’s revenue sports. Regional and national television agreements coupled with large attendance for home games in those sports allows the school to generate enough positive cash flow to counteract most of the spending.
Meanwhile, state auditors and the state attorney general’s office continue separate inquiries into the department’s overall spending and a 2015 golf trip to Scotland that included private donors.
That trip, which reportedly cost the university $63,000, came to light two months ago and cast a negative light on Krebs and his public image.
As reports surfaced and details of the trip became public knowledge, it led to Krebs stepping down as the school year came to an end. Ruggerio will serve as his interim replacement until a permanent successor is found.
Abdallah said the university is reviewing records of suites for the Lobos men’s and women’s basketball seasons. Forty suites were added as part of a $60 million renovation to The Pit in 2009-10.
They reduced the arena’s seating capacity by more than 2,600, but the school aimed to make up the difference by charging more for the luxury seating. The steps Abdallah are taking are aimed at balancing the books for the suites and the upgraded seating.
“This process has revealed inconsistencies in contracts, invoices and payments for certain suites, and we are in the process of contacting current and former suite holders to rectify our records and accounts,” Abdallah said. “We will seek to collect on any past due amounts.”
Abdallah also said “UNM Athletics has already updated its management of suite purchases and collections for this past season, which has resulted in more accurate accounting and more timely payments.”
The university, Abdallah said, is “committed to transparency and fiduciary responsibility, and we take responsibility for the confusion that may have resulted from inconsistent business practices. To the extent that our efforts to rectify discrepancies have resulted in embarrassment to our fans, we sincerely apologize. Efforts are underway to make sure that this situation won’t be repeated.” New Mexican reporter Will Webber contributed to this report.