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University of Iowa will 'reimburse' state taxpayers for Ferentz settlement

The university's athletics department is a self-sustaining unit that does not receive tuition revenue or taxpayer support, according to UI President Barbara Wilson.

IOWA CITY, Iowa — Only days after the Iowa Appeal Board voted to approve the use of taxpayer funds to settle a discrimination lawsuit against the University of Iowa athletic department, the university has announced taxpayers will no longer foot half the bill.

Originally, around $2 million of the $4.175 million settlement payout would come from taxpayer funds. 

University of Iowa President Barbara Wilson shared a statement Thursday announcing the university would shoulder that $2 million payout instead.

Wilson's statement reads in part:

"After listening to the concerns of Iowans, and in consultation with Board of Regents leadership, I have determined that the University of Iowa Department of Athletics will reimburse the state general fund for the $2 million due to the recent settlement. I am deeply committed to our students’ success and well-being on and off the field of play."

Wilson also said the UI Department of Athletics is a self-sustaining unit that does not receive tuition revenue or taxpayer support.

The decision is a win for State Auditor Rob Sand, who voted against the use of taxpayer funds for the settlement. 

"The athletic department, they’ve got the funds for it," Sand said at a news conference before the vote. "The broadcast deal brings tens of millions of dollars every year going forward. I don’t know why they can’t cover their own mistakes and pay for their own mistakes instead of having taxpayers do it.”

In a Tweet, Sand thanked Wilson for listening, writing, "This is doing right by Iowa taxpayers." 

The suit alleged players were called racial slurs and forced to change their Black hairstyles and culture to fit the "Iowa Way" promoted by head coach Kirk Ferentz. 

Ferentz and other coaches allegedly retaliated against those who spoke out, including former star running back Akrum Wadley and career receptions leader Kevonte Martin-Manley. 

Ferentz said Monday he was "greatly disappointed" with the settlement, saying he and others believed "the case would have been dismissed with prejudice before trial" and "there is no admission of any wrongdoing." 

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