Iowa State Would Pay Penalty Over Contract Appeal

Sports

September 12th, 2011 by Jim Field

     IOWA CITY, Iowa (AP) – Iowa State University would have to pay a $3.85 million penalty this year if anyone successfully appeals a company’s no-bid contract to manage its sports marketing rights through 2023.  Documents show Iowa State last year signed a 13-year contract with Learfield Communications guaranteeing the school $53 million
in payments. In exchange, ISU gave Learfield the exclusive rights to broadcast its athletic events, produce coaches’ shows and sell advertising related to Cyclones’ athletics.
     The school also promised Learfield termination payments should the university administration, the Iowa Board of Regents or courts decide the contract should have been competitively bid or was too long.  The University of Iowa and the University of Northern Iowa also have long-term sports marketing deals with Learfield, but neither
school has agreed to pay similar penalties.