Paterno Estate Paid out over $5 million

[Mr. Poon]

http://espn.go.com/college-football...state-pays-more-55-million-joe-paterno-estate

I understand his estate getting the $ Paterno whould have been due from tv and radio for last season, really can't argue that. However, the paying of death benefits as well as forgiving loans he had outstanding, wtf? The guy was fired with cause due to his actions, or really inactions. The reason is buried towards the bottom of the story:

The university's breakdown said Paterno's contract was amended in August to include a $3 million career bonus if he retired at the end of the season, the payment that constituted the largest part of the money his estate received on Thursday. After Sandusky was arrested, Paterno announced he planned to retire at the season's end, but he then removed as coach by the trustees, who have said a "failure of leadership" on his part contributed to their decision.

Mahon said the trustees decided to honor the terms of Paterno's contract as if he had retired at the end of the 2011 season.

Why would they do that, do they think they were wrong in firing Paterno?

Maybe hedman or Eddie can shine some light on the legality aspect of why they would treat it like he retired and ws due all of this. But the university didn't even get a release along with the payments.

 

[marine]

I'm not a lawyer but I would guess they did it as a token of goodwill and to avoid any kinds of civil complaints from the estate.

Think about it - Paterno announces he is going to retire at the end of the year.
2 weeks later (and what, 4 weeks from end of the seaon) he is fired instead.

If someone from paterno's family wanted to really be spiteful they could have a field day with that scenario in court and pull in a lot more than 3 milllion. Whether true or not, you can paint the picture to look like them firing paterno to avoid the 3 milllion dollar payout.

 

[Mr. Poon]

I could see that if they got a release with the payments, but there is this from the article:

The university had requested the family agree to a full release in return for the payments under the contract. That request was declined and no release was signed.

Without a release, Paterno's estate still could sue under the contract or some other reason, if it wishes.

They can still go after the university if they want.

 

[marine]

true - but this would have been a primary piece of leverage that would have brought it to the courtroom almost immediately had they not paid it.

they mitigated their risk/exposure here.

 

[jhawksoon]

I could be wrong but didn't Mike Leach lose his case against Texas Tech for firing him a few days before he was due a huge bonus. It could be that it is not going well for him, I can't remember. It seems like some of you think that Paterno's estate would have a strong case. Just thought I would bring up Leach's case.