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Rich Rodriguez a Victim of Real-Estate Ponzi Scheme?
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1 CommentRich Rodriguez just can’t seem to catch a break.
The rubble hasn’t even settled on practicegate and already there is another controversy brewing. I say that only because of what the perception could be once certain media outlets get a hold of the story, not necessarily based on what the actual story is.
Late Tuesday night, Michigan State fans on various message boards somehow found out that Rodriguez is the defendant in a lawsuit over defaulting a real-estate loan. They dug up the files to prove that Rodriguez is being sued, and Dave Birkett of AnnArbor.com has put together an article on the lawsuit.
University of Michigan football coach Rich Rodriguez is being sued for defaulting on a real-estate loan to build high-end condominiums in the shadows of Virginia Tech’s Lane Stadium.
One of five guarantors for a proposed 80-condominium gated community called The Legends of Blacksburg, Rodriguez and his partners allegedly owe Nexity Bank $3.9 million, including interest and penalties.
Rodriguez was served a summons and complaint in his football office at 5:27 p.m. on Aug. 24, court papers show. Michigan practiced earlier in the day.
When I first looked over the files detailing the lawsuit, I didn’t think this was a huge deal for Rodriguez in the sense that he did anything wrong. As it turns out, it is a big deal, but Rodriguez may actually be the victim.
Rodriguez’s financial advisor, Mike Wilcox, released a statement through Michigan spokesperson Dave Ablauf late Monday, saying Rodriguez is the victim of a real-estate Ponzi scheme.
“Several other coaches and prominent individuals are involved in this transaction that was initiated in 2004,” Wilcox said. “This is a personal issue, and as Coach Rodriguez’s financial advisor, I and his legal counsel will be handling this matter moving forward. We are evaluating legal actions and solutions since the promoter of the scheme is currently awaiting trial on criminal charges.”
It is never good to hear that your football coach is being sued, especially when said football coach is already being relentlessly scrutinized. It’s not like the media needs more fuel to be added to the fire, but I’m sure this story will do that for some outlets. Hopefully that isn’t the case for most, however, as Rodriguez is the victim in this situation, according to Mike Wilcox.
Unfortunately for Rich Rod, a big part of his job is protecting UM’s reputation. He needs to keep the words “Michigan Coach” “loan default” and “sued” out of headlines together. Whether or not he’s justified in the business transaction, it reflects badly on the school. Sometimes I wonder if he’s prepared for a job like UM head football coach. I have no doubt of his ability to win games, but handling the exceptionally high, sometimes unfair, public scrutiny is just as much a part of the job. The school’s reputation is in his hands, probably more than anyone else; that is serious business for a multi-billion dollar institution.