Sparty to pay $500 million to Nassar abuse victims

#4
Mad Scientist
Arizona, USA
Hopefully this comes straight out of the pockets of athletic donors, because that's truly crappy if this hurts the academic side of the house who had nothing to do with it (though I suppose he was affiliated with their med school in some way).
 
#5
In the land of the Nittany Lion
One thing is certain, it will be paid by people who nothing to do with it, whether students, citizens of Michigan, whomever.

What should be done is, as was done in Penn State, investigate and prosecute those whose actions—or inactions—permitted that evil to go on so long.
 
#6
Davenport, IA
One thing is certain, it will be paid by people who nothing to do with it, whether students, citizens of Michigan, whomever.

What should be done is, as was done in Penn State, investigate and prosecute those whose actions—or inactions—permitted that evil to go on so long.
The individual most directly responsible will die in prison. Good chance it will not be from natural causes. A special prosecutor has been appointed to look into additional criminal charges that will be filed. Problem is, let's say 20 people were culpable enough to be charged criminally (the number won't be that high). If we liquidated all the assets of those 20 people, it's wildly unlikely they would come anywhere near $500,000,000. You have to hold the institution accountable because it has the only pockets big enough. It also helps to pressure the institution to set up controls and oversight to make sure it never happens again.
 
#8
One thing is certain, it will be paid by people who nothing to do with it, whether students, citizens of Michigan, whomever.

What should be done is, as was done in Penn State, investigate and prosecute those whose actions—or inactions—permitted that evil to go on so long.
They have a $3 Billion dollar endowment, some of that is restricted but they should be able to peel out $500MM.

Of course, removing 17% of the endowment lowers the income they make from the endowment, which is used for operating, which means they'll likely just raise tuition or lessen (academic) scholarships. So yes, ultimately the academic side pays.
 
#9
They have a $3 Billion dollar endowment, some of that is restricted but they should be able to peel out $500MM.

Of course, removing 17% of the endowment lowers the income they make from the endowment, which is used for operating, which means they'll likely just raise tuition or lessen (academic) scholarships. So yes, ultimately the academic side pays.
And only $425MM is directed to past victims, $75MM to be reserved for any future/forthcoming claims. So now you're down to around 14%.

An average of over a million per victim, currently.
 
#10
Wilmette, IL
And only $425MM is directed to past victims, $75MM to be reserved for any future/forthcoming claims. So now you're down to around 14%.

An average of over a million per victim, currently.
Less the 30% that the attorneys will take...
 
#12
You have to hold the institution accountable because it has the only pockets big enough. It also helps to pressure the institution to set up controls and oversight to make sure it never happens again.
I'm not sure I agree with the first sentence. MSU should be held accountable because they were grossly negligent, not because they happen to hold a lot of people's donations.

I do agree that if they were negligent the only way to really pressure them into changing is to hit them with the cost of lawsuits and damages. I would bet a lot of institutions are looking at their procedures and making changes. That's a good thing.
 
#13
I can't see how this doesn't have to come from either academics or from the state of Michigan. Boosters can be found to build buildings, to improve facilities, make athletic teams better, etc. but I cannot imagine a successful campaign to pay for Nassar. That just doesn't have any cache at all.
 
#14
Captain 'Paign
Phoenix, AZ
Only tangentially related, but does money from court settlements or awarded for something like this get taxed differently than regular income? Even if each victim got $1 million would the government just take like 35 or 40 percent of it?
 
#15
Only tangentially related, but does money from court settlements or awarded for something like this get taxed differently than regular income? Even if each victim got $1 million would the government just take like 35 or 40 percent of it?
It still goes into taxable income for the year - so yes, that would vault each claimant into the top tax bracket for the year the claim gets paid (barring bizarre circumstances), and put them at 35-40%.
 
#16
It still goes into taxable income for the year - so yes, that would vault each claimant into the top tax bracket for the year the claim gets paid (barring bizarre circumstances), and put them at 35-40%.
I am pretty sure that is incorrect. It all depends on what the settlement is for. If you are getting money for lost wages, for example, then that gets taxed. But if you get a settlement for losing your arm, that does not.
 
#17
I am pretty sure that is incorrect. It all depends on what the settlement is for. If you are getting money for lost wages, for example, then that gets taxed. But if you get a settlement for losing your arm, that does not.
Agree with this. Personal injury settlements are not taxed, as you have (my words, not a lawyer) traded one thing you owned (such as your arm or your dignity or your life) for an equal thing (the money). That is not income so it isn't traded.
 
#18
Monies paid for damages are not taxed.
Actually, it depends. Damages for personal injuries, including pain and suffering, are not taxed. Damages for lost wages, which would include damages for terminated employment in a civil rights case, are taxed. A big part of negotiations in those kinds of cases is the characterization of what is being compensated.
 
#20
I can't see how this doesn't have to come from either academics or from the state of Michigan. Boosters can be found to build buildings, to improve facilities, make athletic teams better, etc. but I cannot imagine a successful campaign to pay for Nassar. That just doesn't have any cache at all.
I would think the University has some type of liability insurance that would relieve them of maybe a good portion of this settlement....not sure how that would work with the insurance company since a crime was committed ...but I'm thinking the university isn't going to pay all of this out of it's pockets....at least now....maybe down the road in higher premiums...
 
#21
I would think the University has some type of liability insurance that would relieve them of maybe a good portion of this settlement....not sure how that would work with the insurance company since a crime was committed ...but I'm thinking the university isn't going to pay all of this out of it's pockets....at least now....maybe down the road in higher premiums...
A thought I never had. Interesting.
 
#22
Austin - Sturgeon Bay
I would think the University has some type of liability insurance that would relieve them of maybe a good portion of this settlement....not sure how that would work with the insurance company since a crime was committed ...but I'm thinking the university isn't going to pay all of this out of it's pockets....at least now....maybe down the road in higher premiums...

They might have some sort of E&O coverage to pay settlements like this, but I doubt it would cover more than 10%. It would likely be cost prohibitive to carry more than $50 M....and moving forward, I bet they’ll have a hard time find any insurance carrier to extend coverage.