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Kansas Ticket Scandal: Just The Tip of The Iceberg?

Rock Chalk Jayhawk has been rocked by ticket scalping scandal that the school's own internal investigation reports could reach into the millions.

The report alleges that five former KU athletic staff members sold almost 20,000 basketball and football tickets from 2005-2010, with the estimated value of the tickets possibly reaching $3 million.

Rodney Jones, Kansas' former ticket manager, is at the heart of the scandal. Jones, a KU employee since 1997, was promoted to director of the Williams Educational Fund in 2004, which is the primary venue that Kansas boosters use to contribute money to the athletic department and acquire basketball tickets.

Kansas AD Lew Perkins was notified in late 2009 of an investigation into the illegal sale of tickets reaching back to 2001-03, before Perkins arrived on campus. However, the investigation quickly spread to include illegal sales from 2006 to the present.

The report lambastes the athletics department for creating a culture that allowed high-ranking officials to abuse the ticket distribution system for personal gain. At a press conference yesterday Perkins admitted that the former employees had taken advantage of a "blind spot" in his department’s auditing process.

Kansas officials said they believed that there were no NCAA violations involved with the illegal sales, but this investigation is far from over, and it is out of the NCAA's hands.

David Freeman, a Lawrence real estate developer who said he participated in the scheme, is currently scheduled to begin an 18-month jail sentence on an unrelated bribery charge. Freeman isn't going just yet, because he is talking to FBI and IRS officials about the Kansas ticket scandal.

Freeman told Yahoo! Sports that he, Rodney Jones and high-profile alum Roger Morningstar – the father of Jayhawks guard Brady Morningstar – made hundreds of thousands of dollars scalping tickets during the 2002 and 2003 NCAA tournaments.

There were some other people involved in the scandal, names that weren't mentioned yesterday at the press conference, and it is those other involved that could have far-reaching consequences as the federal investigation moves forward.

First, a little background.


Sonny Vaccaro, the Godfather of Basketball

Sonny Vaccaro started out as a marketing executive for Nike and signed Michael Jordan to his first deal. Vaccaro, who eventually moved on to Adidas and then Reebok, was the first to pay college basketball coaches for exclusive apparel deals and later made similar agreements with universities. He founded the ABCD All America Camp, an elite showcase of high school basketball standouts, which ran from 1984 to 2007. He was the first to put together elite summer circuit basketball teams, paying coaches (who usually had a son who was an elite player) and handing out millions in apparel and shoes.

He is currently on a crusade to get rid of the NCAA/NBA rule that forbids a high school player to jump immediately to the NBA.

He also introduced twin brothers, Dana and David Pump, into the business.


Dana & David Pump have been accused of overseeing the ticket scandal at Kansas.

David & Dana Pump are considered to be two of the most powerful people in college basketball. The duo's company, "ChampSearch", is a consulting firm for coaching searches (they matched Bruce Pearl with Tennessee). They’re also known for youth basketball camps and their Pump N’ Run summer traveling basketball teams, many of which feature some of the most heavily recruited prospects in the nation.

The Pump brothers freely admit that they have long been scalping Final Four tickets. David Freeman says he, Rodney Jones and Roger Morningstar were following the instructions of the Pump brothers when the trio were scalping tickets during the 2002 and 2003 NCAA tournaments.

Freeman said the Kansas operation started in 2002 when the Pumps contracted Roger Morningstar – Freeman’s former business partner – and asked him if he knew how to obtain extra Kansas postseason basketball tickets.

Morningstar has coached some of the Pumps summer traveling teams, one of which included his son, Brady. Since Jones, Freeman and Morningstar allegedly engaged in scalping tickets through the Pump brothers in 2002, those teams financed by the Pump brothers have featured at least nine players who went on to play for the Jayhawks.

Ronnie Chalmers, father of former KU player Mario Chalmers, also coached a Pump summer team before being hired as Director of Basketball Operations at Kansas where he worked from 2005-08.

Jim Harrick, the former UCLA coach who was forced out at Georgia over an academic scandal, is another Pump summer league coach.

When Cedric Dempsey was President of the NCAA he publicly criticized the Pumps for reselling Final Four tickets and tried to stop the flow of NCAA tickets from coaches and school officials to ticket scalpers.

After stepping down from the NCAA, Dempsey became a paid consultant for the Pumps "ChampSearch" company.

No matter what the NCAA does or doesn't do in terms of this particular ticket scandal, this investigation is far from over. David Freeman's talking to the Feds means there are potential federal and state charges that could include theft, tax evasion, money laundering and other crimes.

It also means that the federal government's power of a grand jury subpoena comes into play. And that makes a lot of college athletic officials very nervous.

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There are impromptu ticket audits being held across the country today.

by Matt Cotcher on May 27, 2010 10:42 AM CDT reply actions  

I wonder if Mario Chalmers’ dad, hired to be Director of Basketball Operations at KU — a $70k per year post — should have put a stop to this all. I mean he was the Director of Basketball Operations during Mario’s time at KU. I guess this will be the last time KU goes all the way to Alaska to fill an important post such as Director of Basketball Operations?

by Houstonearler on May 27, 2010 11:01 AM CDT reply actions  

…the Williams Educational Fund in 2004, which is the primary venue that Kansas boosters use to contribute money to the athletic department and acquire basketball tickets.

Greatness.

by Sailor Ripley on May 27, 2010 11:59 AM CDT reply actions  

those teams financed by the Pump brothers have featured at least nine players who went on to play for the Jayhawks.

3 of those players were on the local Kansas City team I believe. I understand Jason King was trying to stir the pot a bit but he left holes. King tries to make it sound like the Pumps were funneling players to Kansas, but how many teams did they fund? I’d be willing to bet that KU missed out on more players from teams funded by the Pumps then the number of players who signed.

King also tries to make it seem like this is directly associated with the basketball program. It’s not, it’s associated with the Williams Education Fund.

by Triston27 on May 27, 2010 12:06 PM CDT reply actions  

Don’t stop,
Believing
Hold on to that feeling
Don’t stop,
Belie

by Nice picture on May 27, 2010 12:15 PM CDT reply actions  

Triston – Shed some light on the Williams Education Fund for us.

by Sailor Ripley on May 27, 2010 12:18 PM CDT reply actions  

Needs to do an article on Jazzy Hartwell, Darrel Arthur, and KU

by Houstonearler on May 27, 2010 12:22 PM CDT reply actions  

Williams Education Fund is a booster program. If you donate to the program it’s like donating to the athletic department. When it comes to tickets for athletic events, they’re all pretty much priced the same. So, to determine who gets the better seats, they see how much you donated. The more you give, the better you sit. They’re really the ones who handle the actual tickets and not so much the athletic department themselves. Though, they are obviously affiliated with eachother.

by Triston27 on May 27, 2010 12:41 PM CDT reply actions  

That sounds very much like the 12th Man Foundation. And make no mistake – playing financial footsie with the 12th Man Foundation is the same thing as playing it with the Athletic Department (in the eyes of the NCAA).

When is the NCAA going to clean up basketball? Oh – how about never? Does never work for you?

by Ag_in_TX on May 27, 2010 1:06 PM CDT reply actions  

Somewhere buried in all this is the fact that an online outlet is consistently breaking these scandals.

Keaton always said, “I don’t believe in God, but I’m afraid of him.” Well I believe in God, and the only thing that scares me is Yahoo!

by Doperbo on May 27, 2010 1:07 PM CDT reply actions  

I believe the WEF is KU’s equivalent of the Longhorn Foundation at UT or the 12th Man Foundation at aTm, as Ag_in_TX alluded.

by kuoirad on May 27, 2010 1:16 PM CDT reply actions  

Triston,

You can conveniently separate WEF from the AD all you want, but the odds are that Perkins knew about this and turned a blind eye once he saw the surplus revenue knowing the connection was tenuous and could pass it off as an auditing mistake.

And there are plenty of shade dudes involved to take the brunt of the punishment.

This is probably happening at 15+ major universities, KU was just the first domino.

by Vasherized on May 27, 2010 1:22 PM CDT reply actions  

Pond scum like the Pump twins are exhibit A as to why no one really wants to take a very close look at any of the top D-1 basketball programs.

You lie down with dogs, you get up with fleas.

by srr50 on May 27, 2010 1:30 PM CDT reply actions  

Vash, I know the two go hand in hand, but why would Perkins turn a blind eye? There wasn’t surplus revenue to the program. It ended up costing the athletic program millions in revenue they missed out on. And I’m not saying the athletic department isn’t at least partially at fault. But I do believe their biggest fault was ignorrance in not seeing it happen.

by Triston27 on May 27, 2010 1:52 PM CDT reply actions  

Vash, I know the two go hand in hand, but why would Perkins turn a blind eye? There wasn’t surplus revenue to the program

Are we sure about that yet?

by Vasherized on May 27, 2010 3:39 PM CDT reply actions  

Blue Chips ain’t got nothing on the real thing.

Seriously. The complexity of today’s profit taking and scandals is truly impressive. Goldman could learn a thing or two.

by bateshorn on May 27, 2010 3:57 PM CDT reply actions  

Vash – Yes, we’re sure about that.

by Hiphopopotamus on May 27, 2010 4:20 PM CDT reply actions  

It would be hilarious if the entire KU bb program was dirty.

by ransomstoddard on May 27, 2010 4:22 PM CDT reply actions  

Hip Hop, What he is saying is that it would be fairly stupid not to see this happening if you are the AD. You either have to not be paying any attention to ticket prices, or it must benefit you in some way. Since we all know that poor athletes never accept a couple grand to go to a camp or a nice car for the folks to go to a school, then we can assume it is just stupidity… oh wait. What’s that you say, it is rampant in college basketball? Where is World Wide Wes, he always makes it sound like paying college guys is better for them.

by Tucker Douglas on May 27, 2010 4:35 PM CDT reply actions  

No wonder my seats always suck at away games and bowls.

by Holdem on May 27, 2010 5:00 PM CDT reply actions  

These folks only think they got problems. I’d be more than a bit surprised if all that ticket income was finding its way on to the employees’ tax returns.

by lawdog13 on May 27, 2010 5:23 PM CDT reply actions  

I always found it funny that when I attended the Big XII BB tourney I had lower level seats and my KU buddies were all in nosebleed upper deck sections. I knew I belonged in good seats ‘cause I donated a nice sum annually to A&M through the 12thMF and there wasn’t a huge basketball demand amongst our fans to go to KC. What I didn’t know (nor them either) that it didn’t matter what they donated because their best seats were spoken for already.

Wonder how desirable KU would be considered in conference realignment if they bring NCAA sanctions along with them?

by Aggie Lurking on May 27, 2010 5:34 PM CDT reply actions  

It is impossible to look at that pic of the Pumps and not immediately think ‘skeezy’.

by blackscholes on May 27, 2010 5:46 PM CDT reply actions  

blackscholes said:
May 27th, 2010 at 3:46 pm
It is impossible to look at that pic of the Pumps and not immediately think ’skeezy’

My first thought was, “Oh, look. How cute. A matching pair of douchebags.”

by texoz on May 27, 2010 9:36 PM CDT reply actions  

until i read the cutline, i thought this was about the pelini bros.

by dub el-take on May 27, 2010 9:45 PM CDT reply actions  

Surely you see that symbolism. Pump 1 holding the NCAA ball in the palm of his hand.

by Pump Me Up on May 28, 2010 3:01 AM CDT reply actions  

Dana’s the cute one.

by lowdenswain on May 28, 2010 6:24 AM CDT reply actions  

A 1976 KU graduate, along with his wife, Mary, Don Lamb is rethinking his commitment to buying season tickets and making the drives to Lawrence for games.

    “Good tickets are getting harder and harder to get. That’s what angers me,” Lamb said. “I know it’s about money. Every year they want you to give more and more, and even though you give more, your seats don’t improve.”

That’s from BON. My first thought: let the lawsuits commence.

by lazer2280 on May 28, 2010 8:06 AM CDT reply actions  

lawdog13 nailed it:

These folks only think they got problems. I’d be more than a bit surprised if all that ticket income was finding its way on to the employees’ tax returns.

IRS > NCAA

by parlin on May 28, 2010 9:05 AM CDT reply actions  

parlin/lawdog – That’s exactly right. And that’s what I’ve been saying fromt he beginning – KU lost out on some revenue and is going through some public embarassment – but all of these individuals are the ones who are really going to be in trouble. Unreported income doesn’t go over too lightly, I’m told.

Tucker – I know what he’s saying. What I’m saying is that when you’ve got $80-90 million/year coming in from a variety of sources, tickets being one of them, that it’s possible to miss $1-3mm over the course of five years. It seems ridiculous and in no way am I defending the lack of safeguards in place to guard against this – but it is plenty possible, and a good lesson for all of us to not trust OU grads.

If, in fact, there were numerous complaints/inquiries by donors about their seats, and why so and so was in front of them to KU, etc…and KU did nothing to investigate these claims, then this thing is going to get real messy. You can almost bet that a class-action lawsuit is going to come up and if they can prove that KU either knew, or turned a blind eye, to these infractions, this will not end happily (for KU).

by Hiphopopotamus on May 28, 2010 9:39 AM CDT reply actions  

the only thing that scares me is Yahoo!

Scares you? It apparently gives Jim Calhoun heart problems:

UConn, Calhoun cited for 8 violations

by Magnificent Bastard on May 28, 2010 9:55 AM CDT reply actions  

The NCAA is only weak in its ability to investigate. Sure, they may also have no balls when it comes to going after people, but on paper the NCAA can wreck shop on member institutions if they want to.

Where this case is different from Big Red Auto or Reggie Bush is that in those cases, the courts weren’t involved so the NCAA couldn’t get a hold of any good evidence. If they have the courts doing all the discovery for them, the NCAA will then have quite a lot to work with.

Whether they choose to or not is a different story.

by Nero on May 28, 2010 9:57 AM CDT reply actions  

Of course it wouldn’t be a scandal if OU wasn’t involved.

by Roach on May 28, 2010 11:28 AM CDT reply actions  

Did they change their name from ‘Pumpinelli’? That’s a couple of goodfellas right there.

by TOR on May 28, 2010 12:25 PM CDT reply actions  

I watched the presser on this— it may still be available online at kusports.com. A few notes from a Jayhawks fan:

This is a HUGE black eye to the University, but let me give you some frame of reference here. Many of these issues started before Lew Perkins came to town. This started in the days when our compliance department was practically non-existent and when our AD was actually quoted saying ‘compliance doesn’t sell tickets’. Lew has beefed up our compliance department and has been extremely open with the NCAA. We’ve also opened our books to some of the best independent auditors in the country. I’m not trying to be an apologist here, but this scandal was brewing before he got here and fooled some of the best accountants in the world.

I think the University responded in the only way it could— it launched a third party investigation (which it released to the public), is giving their full cooperation to Federal investigators and is going to put more controls/separation of duties in place (including an independent forensic accountant). The people who are going to burn for this are going to be the individuals, assuming the Feds don’t find out more with their power to subpoena. None of this excuses either Perkins or the University for not scrutinizing their ticket department in light of some of the donor complaints over the years.

I think that the poster that said that this is the first domino is correct. During the presser, Perkins made mention to other AD’s asking about the methodology KU had been using during their internal investigation. The organizers of this ticket scalping ring (the Pump Brothers), have their fingers in a lot of pies and have friends in many athletic departments. Personally, I’m glad the Feds are going after these guys— I’m growing tired of the NCAA’s lack of teeth.

The Pump’s books are going to be opened for public scrutiny— Freeman’s testimony alone is a smoking gun and the Feds have something like a 90-95% conviction rate. It’s going to be like a Rosetta stone for how AAU organizers, handlers, shoe jockeys and ‘mentors’ operate.

I’m going to be honest; the Pump’s connection to so many KU athletes scares me— especially when SOOOOO much unaccounted cash was floating around. It should be interesting to see how the NCAA handles this. The AAU/sneaker recruitment scene is something that they’ve turned a blind eye to for years and it brings into question whether the NCAA can/should be getting in between these athletes and these sponsors. There isn’t one program around that doesn’t swim in this grimy AAU pool.
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.
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Ok, Northwestern is probably clean.

by Gopher86 on May 28, 2010 8:49 PM CDT reply actions  

I would hate to see Perkins lose his job over this, as he has done much to make KU football competitive with the North teams. However, hiring those cheating, thieving cretins from OU displays an appalling absence of judgement and sense of history. I have no doubt that similar scandalous behavior goes on at OU. Whether it sees the light of day is another matter.

by panhandle2 on May 29, 2010 2:36 PM CDT reply actions  

Is this blog some sort of an elaborate set-up? A warning?

by fist pump on May 30, 2010 5:56 PM CDT reply actions  

Its almost like a crystal ball! Sheesh! But you don’t want to give away the ending because then the outcome will ultimately be ruined. To the crooked NCAA: “Stay doggie, stay…good boy.”

by Push me up in pumps! on May 30, 2010 6:19 PM CDT reply actions  

Just keep telling yourself…the FBI/CSIS is your friend.

by WALKING TA-TA TELEPHONE on Jun 1, 2010 3:11 PM CDT reply actions  

The feds didn’t know anything about this until the end of 2008. KU had its own top secret investigations look into these shananigans in 2001. that is why all this is so shocking.

by Komaff on Jun 2, 2010 7:39 PM CDT reply actions  

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