Monday, March 15, 1999
VonAppen
TV, radio money
disputed
Documents put the
By Paul Arnett
ex-coach's yearly income
at $153,000
Star-BulletinLocal attorney Guy Sibilla has three documents that show what he believes is the University of Hawaii's intent to pay Fred vonAppen television and radio income throughout the duration of his three-year contract.
VonAppen was relieved of his duties as head football coach last year, with two years remaining on his contract. He is suing the university for breach of contract.
Sibilla claims the most important document, on UH letterhead dated January 16, 1998, was sent by Rainbows athletic director Hugh Yoshida to Bank of Hawaii to reflect vonAppen's yearly income of $153,000.
That money is broken down into three categories -- $103,000 base salary paid by UH, $40,000 paid by KHNL-TV and $10,000 by Broadcast Ink Radio.
"This is a statement to Bank of Hawaii from Hugh Yoshida that this is Fred vonAppen's yearly income," Sibilla said. "He sent this to Bank of Hawaii, so Fred could get a loan for his Kailua home.
"This document rejects any claim by Hugh Yoshida, President Ken Mortimer or the Board of Regents that Fred vonAppen's salary was anything less than $153,000 because this is what they represented to a federally insured bank as to what his income would be for the purpose of lending money.
"They can't send something to a federally insured bank that is false or misleading. So, in my mind, they have two choices. They can either own up to the fact that they owe $153,000 in annual income, or they have to answer some questions as to whether they filed a misleading document."
The athletic department might not see it that way. In this document, it clearly states that the base salary of $103,000 is a three-year deal, and the media income is a yearly commitment. This has been the athletic department's stance all along. But Sibilla claims it doesn't matter.
"This may seek clarification in their own mind," Sibilla said. "But this does not clarify in the bank's mind what the income is. They're looking at it as $153,000 of annual income. The bank doesn't care where the income comes from.
"If Hugh Yoshida was to not engage in a TV or radio contract, the University of Hawaii would still have to pay this money because they are representing that this is the income."
Sibilla believes another piece of the puzzle is in a memorandum from Yoshida sent to vonAppen on August 5, 1997. At the time, UH was trying to negotiate a TV deal with either KHNL-TV or Oceanic Cable.
VonAppen was upset because he wasn't getting paid his television money on a regular basis as promised in the original three-year contract.
In the August 5 memorandum, Yoshida guaranteed the $40,000 to vonAppen, even if it had to come from outside sources.
"This reveals that they intended to guarantee the TV money as part of his contract, even if there was no TV deal in place," Sibilla said. "If they didn't want to guarantee it, then they had to say so."
Sibilla believes the third document shows that the university intended for this money to be guaranteed. It's a draft from Ed Yuen, who is the director of UH Human and Material Resources, to Yoshida that is an amendment to vonAppen's contract.
It states that vonAppen will earn $40,000 from KHNL for his weekly television show. But like the other document, it covers only a one-year period.
"This makes it clear that when they negotiated Fred's contract, that it would be for $153,000 a year," Sibilla said. "That is what they intended and anything less is a contradiction to written documents provided by them to a federally insured bank.
"They knew that Fred vonAppen was relying on this additional income to live. If he didn't have the sufficient funds for the loan, then he wouldn't have bought the house. They encouraged him to buy a house to show his long-term commitment to the community and now they're trying to reduce his pay with no basis to do so."
UH officials declined comment.
