Thirty percent of the University of Hawaii’s $500,000 direct settlement with former men’s basketball coach Gib Arnold is to cover claims of “physical injury and physical symptoms,” according to terms of the agreement.
Arnold is scheduled to receive a $200,000 payment today, the second of three payments to the former coach adding up to $500,000. He received $100,000 in November and will get $200,000 a year from today, with the payments spread across three reporting years for tax purposes.
Arnold’s attorneys, Bickerton Dang, received a separate check for $200,000 on Nov. 30.
Attorneys for Arnold and UH have declined to elaborate on the claims of “physical injury and physical symptoms,” but the agreement says that on Jan.27, 2015, three months after his firing by UH, Arnold asserted “various claims arising from his termination, which included claims for personal injury and physical sickness.”
A copy of the eight-page mutual release and settlement agreement was obtained by the Honolulu Star-Advertiser.
A lawyer not involved in the case said payments for injury are not taxable.
Arnold’s settlement agreement notes, “The University will not issue an IRS form 1099-MISC to Arnold for (the physical injury and physical symptoms) portion of each payment.”
It further states, “It is understood and agreed that 70 percent of each payment to Arnold is intended to be payment of wages, salary or compensation and the University will issue an IRS Form 1099-MISC to Arnold for this portion of each
payment.”
At its conclusion, it is estimated UH will have paid $948,000 to cover various portions of Arnold’s tenure, exclusive of its own attorney fees.
The $948,000 is said to include: $100,000 for all of Arnold’s salary and vacation pay and bonuses between October 28, 2014 and January 26, 2015; $148,000 for the period January 26, 2015 to June 30, 2015; and $700,000 comprising the payments (including attorney fees) under the final settlement.
UH said it is appealing a postseason ban for the 2016-17 season handed down last month by the NCAA for infractions alleged under Arnold’stenure.
Arnold’s attorney did not comment on whether his client is appealing a three-year show-cause order scheduled to run through Dec. 21, 2018. If hired by another NCAA member, he would be required to sit out 30 percent of the regular season. He is currently a regional scout with the Boston Celtics.