Judge hears arguments in Free Press case against MSU for denying info on Tucker deal
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Lawyers for the Free Press and Michigan State University argued their cases Tuesday at the Michigan Court of Claims over whether the university acted properly in denying a public records request regarding donations that funded a decade-long contract for football Coach Mel Tucker.
In June, the Free Press sued MSU after university President Samuel Stanley denied an appeal under the state Freedom of Information Act (FOIA) for the university to disclose the gift agreements it had with donors Mat Ishbia and Steve St. Andre. The FOIA allows for members of the public to request records from public bodies, in this case a public university like MSU.
More:Free Press sues MSU over donor gifts to fund Mel Tucker's salary
More:MSU President Samuel Stanley resigns, says he lost confidence in Board of Trustees
Ishbia, current chairman, president and CEO of United Wholesale Mortgage, and St. Andre, founder of marketing firm Shift Digital, have donated millions to MSU, including to help pay for Tucker's 10-year, $95 contract signed in 2021.
The Free Press asked for copies of gift agreements between MSU and the donors from 2019 to 2021.
Stanley, who has since announced his resignation following fallout with the MSU Board of Trustees over unrelated issues, wrote in his denial, "It is the University's position that the individuals' privacy interests outweigh the Free Press' stated interest in disclosure."
An attorney for MSU, Scott Eldridge of Miller Canfield, argued to presiding Court of Appeals Judge Brock Swartzle that the donors have an expectation of privacy when it comes to the total amount donated to the university and its athletic program, the suggested use of the money donated and any schedule of donation payments.
"We're here talking about private citizens who do not need to check their private interests at the gates of campus because they're dealing with a public institution for philanthropic purposes," Eldridge said.
Free Press legal counsel Herschel Fink noted that MSU's first action was to deny the records request in totality, rather than issue redacted copies of the records concealing any private information, like the donors' addresses and estate information.
"It's not so much that we're seeking information about Ishbia and Steve St. Andre, we're seeking information about the university," Fink said, noting that the gift is viewed as "transformational" to the university.
"What are the strings here?" Fink asked. "What do the donors demand?"
Swartzle did note that the gifts, while made by private donors, will have an effect on the university's future expenditures.
"If a certain amount of money is given to athletic department, that may free up other money," he said. "I don't see how that's not intimately involved with the workings of a public university."
In court filings, the Free Press argued the information sought in the records requests pertains to any potential business agreement or influence the donors may receive through their contributions, not the personal information of the two donors, who are well-known among MSU supporters and decision-makers.
"Spartan athletics is very big business at MSU, accounting for projected 2022-23 revenues from athletics of $146 million," Fink wrote in a motion for summary disposition. "It also provides MSU with priceless national publicity and prestige. The people of the State of Michigan thus have a keen interest in MSU, how it is governed, the factors that influence its governance, and its elected Board of Trustees, including in the high-profile business of intercollegiate athletics."
Other Michigan universities, including Wayne State University and Eastern Michigan University, have disclosed similar gift agreements under the state's open records law.
In its motion, the Free Press cited the gift agreement between Wayne State and the Ilitch family regarding a donation to fund a new business school, which now bears the late patriarch Mike Ilitch's name. Details in the 42-page agreement included requirements that Wayne State consult with Ilitch's organization on curriculum and have a display honoring him in a prominent place.
MSU has provided the court with redacted versions of the gift agreements. The records have been sealed while the case is ongoing. Swartzle said if donors were concerned with privacy, they could have given the gifts anonymously.
"The identity of the donors has been public for a long time," Swartzle said.
Eldridge brought up the potential ramifications of disclosing the nature of the gift agreements, citing affidavits filed by Ishbia and St. Andre stating there could be a "chilling effect" on future donations to MSU if the details surrounding Tucker's contract extension are made public.
"So what?" Fink said, noting that Michigan's FOIA laws don't take into consideration any potential effect on future financial gifts.
Swartzle said a ruling is expected on the case in the next four to six weeks, pointing out that any unrelated litigation regarding the upcoming midterm elections would take precedent.
MSU inked Tucker to an extension during the 2021 season, in which he led the program back to national relevance and an 11-2 finish after winning the Peach Bowl. At the time of his contract, Tucker had been linked to the head coaching job at LSU, following Coach Ed Orgeron's dismissal. MSU hired Tucker to replace Mark Dantonio after the latter retired following the 2019 season.
The Spartans have started the 2022 season with 3-4 record, with a trip to archrival Michigan next on Saturday.
Staff writer David Jessie contributed to this report. Contact Arpan Lobo: alobo@freepress.com. Follow him on Twitter @arpanlobo.
This article originally appeared on Detroit Free Press: Judge hears Free Press lawsuit over donor gifts for Tucker extension
