OSSAA draws harsh criticism over legal fees, expenses

The association that oversees high school athletics in Oklahoma has run up more than $1 million in legal fees and expenses in the past four years, and some of its critics say those costs are too high.

“It’s no surprise to me ... how much money this organization pays in attorney fees,” said one critic, state Rep. Bobby Cleveland, R-Slaughterville.

“They waste more money than most small corporations have,” he said. “It’s shocking that they are even considering raising playoff ticket prices. While the schools are hurting financially, they continue wasting money.”

The Oklahoma Secondary School Activities Association uses one of the largest law firms in the state, Crowe & Dunlevy, for its legal matters rather than employing an in-house attorney.

Attorney Mark Grossman assists the OSSAA the most. He charges the association $280 an hour, a 20 percent discount from his normal rate.

The OSSAA said in the last fiscal year it paid $316,586 in legal fees and expenses. That is almost

6 percent of its $5.5 million budget. The OSSAA said it spent $398,953 on legal fees and expenses the year before.

Executive Director Ed Sheakley said the legal expenses should be going down because of rule changes.

The most significant cost-saving change is that a student can choose a high school in the ninth grade — and be eligible for varsity athletics immediately — regardless of where the student’s family lives or where the student went before.

The choice is allowed as long as the student wasn’t recruited for athletic reasons or unduly influenced.

“Previously if a student was transferring schools in the ninth grade, or choosing to attend a high school outside of the family's school district or area of residence, then the student had to demonstrate that the change of schools was due to an unavoidable hardship in order to gain immediate varsity eligibility,” Sheakley told The Oklahoman.

“We hope that this rule change will reduce the number of disputes,” he said.

Legal problems

The association oversees extracurricular activities for nearly every public school in Oklahoma for grades seven through 12.

It makes decisions on the makeup of athletic districts, playoffs and student transfers and eligibility.

The association legal costs go way up when parents or student athletes file lawsuits to challenge its decisions.

Its critics say it has acted arrogantly in enforc- ing its rules on student athletes. Last October, in a sharply worded opinion, the Oklahoma Supreme Court ruled the association had acted arbitrarily and capriciously in banning a football team from the playoffs.

“This Court has permitted the OSSAA, in the guise of a voluntary association, to govern the affairs of secondary school athletics in Oklahoma with near impunity. No more,” Justice Yvonne Kauger wrote for the majority in the 40-page opinion last year.

The association does have insurance coverage that helps with legal costs.

“Insurance coverage generally begins when legal fees on a particular lawsuit exceeds $35,000,” Sheakley said.

The insurer reimbursed the OSSAA $67,672 in the 2010-2011 fiscal year, Sheakley said this month. Another $60,000 reimbursement is coming.

At a June meeting of the OSSAA board, attorneys Grossman and Clyde Muchmore talked about ways the association could reduce its legal costs. No decision was made.

Grossman told the association one way it could save money is to pay a law firm only a retainer — an agreed amount each year.

“Any services exceed that amount, well, that’s just a risk that the law firm takes,” he said.

“Now it’s potentially a risk that the organization takes because if your actual legal fees are below that amount, then you could take a loss on it.”

He also said the association could employ an inhouse attorney for day-today matters. He did note, though, some problems with such an arrangement.

“Basically ... you’re talking about a lawyer who would be working for less than $80,000 a year depending upon experience,” Grossman said. “And you’re most likely to get somebody with no experience. So there’s going to be a cost associated with getting an in-house counsel up to speed ... and then keeping that person becomes an issue.”

Sheakley told The Oklahoman, “It’s not clear whether employing an inhouse attorney would reduce costs overall.”

One recent controversy shows how even little issues can become costly.

The Oklahoma Ethics Commission in March began an investigation of the OSSAA for not reporting that it provided free playoff tickets to state legislators.

Once the OSSAA began using lobbyists, it was required to report those gifts to the Ethics Commission. The OSSAA ended up paying $1,200 in civil penalties to the state and it agreed to stop giving away playoff tickets to legislators.

The OSSAA paid much more than that in legal fees to its attorneys who negotiated the settlement.

The total bill for legal work on the controversy in March, April, May and June was $12,532, Sheakley said.