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The Pac-12 conference announced the termination of two senior executives on Friday following an investigative audit into financials dating back to 2016.
The investigation determined that the two executives failed to disclose material information to the conference’s board of directors, as well as external conference auditors, in connection with overpayments by a distribution partner.
In October, the distribution partner who was the subject of a 2017 audit determined that it had been overpaying the conference each year since ’16. The overpayments totaled more than $50 million.
Upon being alerted of the mistake by the distribution partner, the conference hired Cooley LLP to conduct an independent investigation into the matter. The firm concluded that the two senior executives were aware of the overpayment since late 2017, and that the executives failed to disclose the information related to the material financial risk to the conference.
In addition, the investigation concluded that the executives failed in their “ongoing obligation and duty” to disclose the information to the board of directors and external auditors.
“The Pac-12 took immediate and appropriate action to address this matter, consistent with best governance practices,” Friday’s statement read. “Pac-12 leadership is committed to supporting our members and student-athletes, and always operating at the highest level of professionalism.”
