UNC Cost Associated with Wainstein Report Top $10 Million

The residual cost of the Wainstein report came into a clearer picture on Monday.

UNC estimates that more than $7.5 million was spent for services provided by three law firms and one public relations agency that were directly related to the academic irregularities of the ongoing scandal.

The estimated $7.5 million expense report is in addition to the approximately $3 million spent by the university to commission the Wainstein Report.

This information was released on Monday by the university via its Carolina Commitment website. The release was spurred by public records request from the News and Observer and the Daily Tar Heel.

The university lists several reasons for needing the additional resources provided by the firms including, pending class-action and other lawsuits filed in federal and state courts, the pending NCAA investigation, pending review of academic reforms and their effectiveness, two pending public records requests – the largest in University history, a sharply rising volume of regular public records requests, pending personnel reviews and leadership transitions including in the Office of University Counsel and the hiring of a vice chancellor of communications and public affairs.

The vice chancellor position, now held by Joel Curran, was a newly created position as of December 2013.

The statement says that it is a common and cost-efficient practice for universities facing “significant challenges” to hire outside firms in those areas of expertise, rather than hiring and training additional staff that will not be needed on a permanent basis.

The full breakdown of money spent on each firm is listed below, directly from the university’s statement:

• Skadden, Arps, Slate, Meagher & Flom LLP, as outside counsel, submitted invoices between February 2015 and July 2015 for work over a six-month period with total billings of $2,776,479 (all non-state funds). The University estimates $1,926,479 of that total was related to the academic irregularities. A significant portion of Skadden’s services is not for those issues – approximately $850,000 (estimate) during this time period.

• Cadwalader, Wickersham & Taft, LLP billed $2,673,428 (non-state funds) between December 2014 and June 2015 for professional services performed over a seven-month period that primarily included processing for public release records gathered during the investigation led by Wainstein.

• Bond Schoeneck & King Attorneys billed $1,270,377 (non-state funds) between December 2012 and July 2015 for professional services and consultation dating back to November 2012.

• Daniel J. Edelman Inc. billed $1,695,656 (non-state funds) for strategic public relations advice and services provided over seven months, between June 2014 and December 2014, that included, but were not limited to, academic irregularities and related issues.

The release states that “no state-appropriated or tuition dollars are being used for these expenses.”