(4/1/99)
It's a $900,000 question: Was it legal for Olympic organizers to
terminate a consulting contract with former SLOC president Tom Welch?
Welch says it wasn't--and the issue is now lurking as another thorny money
problem organizers had hoped to avoid.
News Specialist John Daley reports.
As Olympic president, Tom Welch reveled at being at the center of things.
Now the specter of a fight over money puts him there again.
When Welch resigned, organizers gave him a $900,000 consulting contract.
But when the Olympic scandal erupted, the SLOC yanked his contract--in large
part blaming Welch for the mess.
Now, Welch tells the Salt Lake Tribune: "I do not believe I have been
dealt with fairly either in law or equity. There was no legal basis or
justification for the cancellation, under terms of the contract."
Today, Welch's lawyer says they haven't decided to file a lawsuit, yet.
Tom Schaffer, Welch's Attorney, says, "Our position still is we did what we were asked to do. We got the Olympics. And the termination of the contract is something we'll have to look at somewhere down the road after some of the smoke clears away."
For organizers, it's no measly sum. They still need to raise $288-million
from sponsors to pay for the games.
SLOC spokesperson Shelley Thomas told the Salt Lake Tribune: "We terminated his
consulting contract because we believe he breached the agreement."
But the contract apparently makes no reference to past violations of state or
federal law, or participation in activities embarrassing to organizers.
His lawyer says Welch's concern now is not of vengeance, but fairness.
Schaffer says, "I think he feels he was treated unfairly, and frankly, so do I. You used the word vengeance. I don't think that's an issue at all. I think Tom would like to be able to clean his name and for the public to understand he didn't do anything wrong, that he did what was asked of him."
Meantime, Schaffer says the plan is to lay low until all Olympic probes are
finished, though that may be easier for the lawyer than his still high-profile
client.
