On January 12, 2006, Mike Fish of ESPN.com published a lengthy piece on the “most powerful boosters” in college sports. At the top of the list was Oregon’s Phil Knight, Oklahoma State’s T. Boone Pickens and Auburn’s Bobby Lowder.
(At Auburn, failed banker, megabooster Bobby Lowder oversees school budget)
Lowder is the former CEO and chairman of Colonial Bancgroup, a banking empire he founded in 1981. In 2009, Alabama-based Colonial was the largest bank failure in the United States and sixth-biggest bank failure in U.S. history. Lowder’s company was seized by Federal regulators in a collapse that reportedly cost the FDIC $2.8 billion.
In the aftermath of the Colonial failure, last month the OPELIKA-AUBURN NEWS reported:
The feds (FBI) are moving forward quickly toward prosecution of some 50 bank executives and directors of failed banks to recover as much as $1 billion paid out by the Federal Deposit Insurance Corporation.
Lowder is being personally sued by Colonial employees for $50 million for alleged mismanagement of their retirement funds and the FBI has alleged that Colonial executives committed financial fraud totaling $1.9 billion. FORTUNE Senior Editor Brian O’Keefe also noted another Federal investigation of Lowder’s Colonial:
Perhaps most worrying for Lowder is an investigation by the FBI and the Office of the Special Inspector General for the Troubled Asset Relief Program into Colonial’s so-called warehouse-lending business.
Colonial applied for $550 million in TARP funds last fall but was never cleared to receive a bailout. On Aug. 3, just 11 days before regulators shut down Colonial, agents raided the bank’s offices in downtown Orlando, where the warehouse lending was managed, and spent hours carting away boxes of documents.
After the Colonial meltdown, Lowder “retired” from his post at the bank. Despite the public ignominy that befell his finance career, Lowder continues to retain his seat on Auburn Board of Trustees. As the longest tenured member of the board, Lowder currently chairs the finance committee that oversees Auburn University entire budget - which includes the Auburn athletic department.
Of Lowder’s role at Auburn, Fortune’s O’Keefe wrote in 2009:
“His name might not be familiar outside Alabama, but he is easily one of the most feared, loathed, and some say misunderstood men to wield power in this state since George Wallace — the governor who first appointed him to the board in 1983.
“… Lowder has been accused of making backroom deals with governors and treating the Auburn football program like a private fiefdom. (Because of his influence over Auburn’s athletic program, three years ago ESPN named him the most powerful booster in college sports.)”
The BIRMINGHAM NEWS reported that some of the “big losers” in Lowder’s Colonial bank “dive” were former Auburn football coach Pat Dye and prominent Auburn booster and gambling business magnate Milton McGregor. McGregor reportedly owned $19 million in Colonial stock at one point. Lowder reportedly had many of his high-powered Auburn acquaintances, including McGregor, appointed to the Colonial Board of Directors.
As owner of the state’s largest electronic bingo casino, VictoryLand, Milton McGregor is one of the highest-profile Auburn boosters in the state. In 2008, he donated $1 million toward construction of the new Auburn basketball arena.
The morning of October, 4, 2010, the BIRMINGHAM NEWS reported:
FBI agents swept across Alabama this morning arresting state lawmakers and lobbyists as part of a federal probe into efforts to pass gambling legislation last spring.
The biggest name arrested so far has been VictoryLand owner Milton McGregor, who was arrested at his Montgomery home this morning.
Before McGregor was arrested by FBI agents, the Birmingham News reported of the ongoing investigation on May 7, 2010:
Sources familiar with the investigation have said the probe has included the use of wiretaps, and several lawmakers agreed to wear wires to capture the conversations between themselves, other lawmakers and lobbyists.
One of those lobbyists, prominent Auburn alumnus Robert Geddie, was arrested by FBI agents on the same day as Auburn booster McGregor as part of the same Federal investigation. From the BIRMINGHAM NEWS:
Geddie, who along with partner Joe Fine, have operated maybe the capitol city’s most powerful contract lobbyist firm for years.
Budd McLaughlin of the HUNTSVILLE (AL) TIMES reported in 2008 of Auburn’s financial relationship with Geddie’s firm:
Alabama and Auburn pay a total of $20,000-a-month retainer fees to the Montgomery lobbying firm of Fine Geddie & Associates LLC, which has 50 clients, including some of the nation’s largest corporations.
At Auburn, the lobbying firm is paid from Tigers Unlimited, AU’s Athletic Department’s fund-raising arm.
Last month, shortly after Geddie’s arrest following FBI wiretaps, the OPELIKA-AUBURN NEWS reported of the current state of Geddie’s firm’s business relationship with Auburn’s “athletic department fund-raising arm“, Tigers Unlimited:
A whopping amount of the money flowing to the firm, almost a million dollars thus far, has been paid by the Auburn Athletics/Tigers Unlimited Foundation (TUF).
The O-A News added that in the wake of Geddie’s arrest, “Deedie Dowdell, who heads the Marketing and Communications Department at Auburn, said there are no plans to end the contracts (with Geddie’s firm.)”
Auburn’s Dowdell also noted that as the AU athletics fund-raising Tigers Unlimited was expressly created as a private organization, it can keep all of its financial dealings secret.
Mike Fish of ESPN.com reported of Tigers Unlimited in 2006:
According to the 2004 federal tax documents filed by the Robert and Charlotte Lowder Foundation, a grant of $600,000 — more than a third of all moneys issued during the year — went to Tigers Unlimited, the fund-raising arm of Auburn’s athletic department. A $30,000 grant was written to Chette Williams Ministries Inc., a nonprofit charity operated by the Tigers’ team chaplain.
On September 14, 2003, the John Zenor of the ASSOCIATED PRESS reported:
Former Auburn coach Terry Bowden said on tape two years ago that boosters were funneling thousands of dollars to players when he became coach in 1993, a time when the Tigers were on NCAA probation.
“They were paying players cash, $12,000, $15,000 to sign,” Bowden said on a recording reviewed by the Associated Press. “All I was told to do was shake hands and say, “Thank you. I appreciate how much you love Auburn.’ “
On the tape, Bowden said 25-30 boosters would meet in Birmingham and 15-20 would meet in Rome, Ga., and that they would give $5,000 each. He said that when he arrived at Auburn, an assistant collected the money.
Bowden later claimed through a spokesman that the comments were off the record, but the Associated Press reported that the writer who recorded the comments received an e-mail from Bowden “encouraging their publication.”
Bowden has not disputed the writer’s claim about that encouragement nor the veracity of the publication of his remarks.
Not reported in the AP account of Bowden’s remarks was who else was in attendance when the coach accused Auburn boosters, Auburn Trustees and even his own coaching staff of participating in a scheme to pay players under the table.
On Sept. 18, 2010, Mitch Sneed of the Opelika-Auburn News reported:
A group of longtime Auburn University professors said Wednesday that they were present at an April 2001 conversation with Terry Bowden where the former Tiger football coach told about a system for playing players.
Dr. Barry Burkhart, Dr. Larry Gerber and Dr. Gary Mullen all said they accompanied Dr. Wayne Flynt to a farm in Loachapoka, where Bowden told all he knew about how thesystem worked.
Their revelations were backed up by comments by former athletics director Mike Lude, who said Bowden told him a similar story in 1999 and again in 2001.
“A group of us accompanied Wayne (Flynt) to a farm in Loachapoka,” Burkhart said. “I don’t recall (Bowden) ever saying, ‘you can’t repeat this’ or that it was ‘off the record.’ He wanted someone to hear it.”
Bowden reportedly held five separate meetings during a two-day period in April of 2001 as part of his detailing alleged Auburn impropriety. His remarks included citing Auburn Trustee Lowder as having allegedly masterminded the football program’s pay-for-play operation.
In 2001, Auburn University’s accreditation was placed in significant jeopardy. Mike Fish of ESPN.com reported of the challenge to the school’s basic credibility:
The Southern Association of Colleges and Schools (SACS), the regional accrediting agency, placed the university on probation. The agency cited the micromanagement by Lowder and the board of trustees, saying Auburn failed to prove that the university president has “ultimate control over the athletics program” as well as failing to prove that the board isn’t controlled by “a minority of board members.”
Since his Colonial bank empire imploded, Lowder’s power on the Auburn Board of Trustees has reportedly diminished, but as overseer of the school’s athletic and overall budget, he obviously still wields considerable influence.
Influence that undoubtedly includes same manner of oversight of Tigers Unlimited, which as a private entity, can keep its financial records secret.
The same Tigers Unlimited that has reportedly paid the lobbying firm of Auburn alumnus Robert Geddie “almost a million dollars thus far.”
The same Tigers Unlimited-funded Geddie who was arrested by the FBI last month following an investigation - that included wiretaps - of his recent dealings with Auburn mega-booster Milton McGregor.
What was current Auburn Athletic Jay Jacobs doing before he took his present job?
From the Auburn athletics official site:
Jacobs gained strong business expertise as the Senior Associate Athletics Director for Tigers Unlimited prior to his appointment as Director of Athletics.
From ESPN.com in 2006:
Jay Jacobs, the new AD who previously headed Tigers Unlimited, said of his dealings with Lowder: “I don’t have any whatsoever.”
Lowder, who has been on the Auburn Board of Trustees since 1983, will have his most recent term expire in April.
UPDATE: TMZ.com is now reporting:
According to sources connected to the probe … FBI agents looking into the Newton recruiting controversy are also asking about Milton McGregor — a dog track owner arrested last month for allegedly bribing Alabama politicians to vote pro gambling.
We’re told agents asked someone connected to the Newton case if he was familiar with McGregor or the bribery scandal.
(Auburn Booster Milton McGregor, wiretapped, arrested by FBI)
UPDATE 2: TMZ.com has updated its story on McGregor being linked to the FBI investigation of Cam Newton recruitment:
Milton McGregor’s attorney tells TMZ his client has “never had any contact – direct or indirect – with Cam Newton, Cecil Newton, Cam’s father; Kenny Rogers or anyone purporting to represent Cam Newton.” He also says McGregor has never compensated student athletes at Auburn or any other school.
Follow Brooks on Twitter for real-time updates.
2:44 pm on November 17th, 2010
Brooks,
Good synopsis but, I would beware of your sources, especially Paul Davis. Davis is a grade-A looney-bird. Finebaum interviewed him several years ago about an article he did on Lowder. He was absolutely the worst interview I’ve ever heard and rambled on and on about nothing. I’m no fan of Lowder, but Davis is WAYYYY out there. I’d take anything he writes with a grain of salt.
2:50 pm on November 17th, 2010
First off, great reporting Brooks. You are one of the few sources “hitting the nail on the head” here. The reason the FBI are involved in the Cam deal, is solely b/c the FBI is investigating Colonial Bank and the schemes they were running. FDIC has already sued Lowder and employees. The Fed’s are no seeking criminal charges. This issue is specifically why the Cam deal is so tight lipped…it’s part of a large federal investigation which has been taking place for over a year.
“cost the taxpayer-funded FDIC $2.8 billion.”
Need to correct you here. FDIC is a bank funded operation. Banks pay FDIC fee’s to cover themselves in event of bankrupsty and to be able to claim FDIC insurance.
2:57 pm on November 17th, 2010
Brooks. I’ve come down on you hard in the past for jumping on non-stories, but this is excellent reporting. Good job!
3:57 pm on November 17th, 2010
Great story Brooks
Why do I feel the need to wash my hands after reading that.
The only thing missing is a body found floating in a swamp and underage hookers.
4:02 pm on November 17th, 2010
This is a great article Brooks. You pieced together alot of noise out there and this one is right on. There is a system. People in Alabama know about it. I hope they nail Lowder with this one. He gets to retire while lives were ruined by his increadible greed. again, great work Brooks.
4:23 pm on November 17th, 2010
Great Post! You really did some research on this one. By the way, Milton McGregor’s bingo casino “Victoryland” is in Shorter, Alabama not Birmingham. Shorter is halfway between Auburn and Montgomery off of I-85.
5:00 pm on November 17th, 2010
So- Auburn has many shady boosters? did I fail to connect the dots? I don’t see the connection or that anyone with Auburn did anything wrong except be a d-bag in their business affiars.
5:48 pm on November 17th, 2010
So let me get this straight- Auburn homers. You want us to believe that Cecil Newton wanted money from Mississippi State to go there yet Cam goes to a school (Auburn) that was not his first choice (by his own admission-it was his Dads favorite school) and he received no benefit from Auburn? Okay, sure-no problem.
Get your heads out of War Eagles patootie and join the rest of us in reality.
5:58 pm on November 17th, 2010
I sure hope this thing blows wide open after the Alabama/Auburn game. No reason to take him out of the game until he has played every team.
6:46 pm on November 17th, 2010
Give him the Heismann. He’s Tony Dorsett-approved. White people…always trying to hold them down….
8:03 pm on November 17th, 2010
You see………….
Victoryland has a special slot that only special visitors get to play, and guess what it pays $100,000 for a win. They have already shown where Birmingham politicians won off this special machine.
Thats how they paidl, come play the special slot……..
8:12 pm on November 17th, 2010
The question then is, will the feds turn the tapes of Newton asking for money and getting it, over to the NCAA? They have been wire tapping this group for a long time. They must have the tapes. If this is why they are looking into the Cam Newton recruitment, this will tear down more then Newton. This could close this university!
8:16 pm on November 17th, 2010
McGregor spokesman Bill Cunningham released this statement to WSFA 12 News through Joe Espy, McGregor’s attorney:
“Contrary to postings on celebrity and sports blogs, Milton McGregor has never had any contact direct or indirect with Cam Newton, Cecil Newton - Cam’s father, Kenny Rogers or anyone purporting to represent Cam Newton. Mr. McGregor has never been asked to provide money for any recruitment or compensation of any current or perspective student athlete including Cam Newton at Auburn or any other school, and has never provided any type of compensation in that regard period no exceptions. As a proud supporter of Auburn University Mr. Mcgregor wants it known that he does cheer loudly for Cam Newton and thinks he is the best athlete in college football.”
for the record he has also given 1 million to Troy for a building
9:01 pm on November 17th, 2010
All’s fair in love, war, politics and SEC football. Those who think college sports is sports… is in on it. This is simply “business as usual.”
9:12 pm on November 17th, 2010
Ringleader you are you joke. White people trying to hold them down has to be the most dumba@@ remarks I have ever heard. Get a life you fool. Brooks great article. Great research.
9:21 pm on November 17th, 2010
I think we all know something unethical happened during the recruitment of Newton to Auburn…..what I am waiting for is the realization that the kid didn’t just find the idea of getting paid to play……HOW DID FLORIDA GET HIM TO SIGN???? I find it hard to believe his first time asking for money he’d ask for so much…..it’s easier to believe that he got paid before( @ FLA) and realized that he really could ask for more…But I don’t mean Cam personally more likely the others in his camp.
9:40 pm on November 17th, 2010
This thing gets worse by the day. The truth will come out. Unfortunately, a member of the greatest conference in the land is about to be unrecognizable when the FBI and the NCAA are finished! Too much smoke not to be some fire. The root of all evil……………$$$$$$. Money, Power, Sports and the desire to win. Greed will get ya everytime!!!
9:44 pm on November 17th, 2010
Chuck,
The connection to Cam is unknown, but the FBI wiretapped some of these boosters on suspicion of bribery, extortion, for their business dealings in unrelated matters. Speculation is they may have also heard conversations about a pay for play scheme…..why else would the FBI be involved?.
The BoT and booster bigwig, Lowden, was on board when the Patrick Ramsey pay for play scheme came to light, so it is at least plausible that he could be involved in it again. He and his cronies are accused of bribing public officials, extorting money, misusing bank funds of a bank that ultimately failed and cost FDIC billions of $$$$…….so it isn’t like these guys are shining beacons of ethics or high morality.
9:45 pm on November 17th, 2010
Sorry above post should have been addressed to Carl….
11:54 pm on November 17th, 2010
SuprXY- The point is that there are several unethical people involved at the top of AU athletics and the University boosters. There has been conversations uncovered and the Newtons themselves had said it was not going to be free this time. Too much smoke here. For Cam to jump between schools and choose a school he said was his dad’s choice, it appears there is some rules that have been broken. The FBI would not be involved if there was not some kind of scandal behind all of this. I just hope the truth comes out before Auburn is crowned the NC and Newton wins the Heisman just to have it all vacated. There are other teams and players that should getthe legitimate chance if Newton and Auburn are inelligible.
11:57 pm on November 17th, 2010
I love how you act like Tigers Unlimited is unique. Most FBS schools have similar program. And, Tigers Unlimited operates identically to the program it was modeled after: Tide Pride.
11:58 pm on November 17th, 2010
Oops the previous post was to Chris not SuprX.
12:49 am on November 18th, 2010
Okay….after reading about the corruption all around the state of Alabama,( Bankers, Track Owners, Gamblers, businessmen ) Where is Cam Newton ineligible for going to Auburn University. Where is the money ? Seems like you are chasing the wind. Until you have a real smoking gun…you have nothing.
1:22 am on November 18th, 2010
Before talking about how schools that aren’t playing ineligible players, and no player has been proven to be ineligible, let’s just take a moment to appreciate the irony of the fact that the last time a team got screwed out of the NC game when an ineligible player was leading a team to a championship. In 2004 when Auburn couldn’t play even though Reggie Bush was definitely getting paid at USC.
7:49 am on November 18th, 2010
What in the name of journalism does this have to do with truth? Just a bunch of regurgitated, loosely connected stories that have nothing to do with the current Cam Newton investigation. You’ve been reading way too much of Paul Davis and buying in to his spin. This is a guy that is widely regarded as a joke- even to his friends. You need to check your sources on this story. Thoroughly disappointed in the spin on this article and count me as former reader. You are no better than the Nat. Enquirer.
9:37 am on November 18th, 2010
Brooks,
Milton McGregor is not some evil Auburn booster like Bobby Lowder. The man sits on the board at Troy University, and also gave Troy $1 million to work on a new basketball arena: http://trop.troy.edu/2010/10/07/n01.php.
There are some fishy things going on here, but let’s not buy into a TMZ story just yet.
10:24 am on November 18th, 2010
Cant have an Auburn scandal without Bobby Lowder & Pat Dye’s name coming up. The only one left out is Eric Ramsay. As long as they continue to associate with these people they will continue to live under a cloud of scrutiny. When I heard the FBI was involved it brought back many bad memories of my Alma Mater. They just can’t get it right. Auburn is a weird school. We always thought we were on the level with ‘Bama, Florida, OSU, USC but we really aren’t.
I’ll say this, Mississippi State might as well close down their football program. Like Lowder and Dye with AU, MSU has their shady relationships with Bell & Rogers. Although they don’t work for MSU, they are associated. Every player they ever recruit will ask Mullen and his coaching staff, “if my son doesn’t go to your school what are you going to say about him. Remember, no kids parents ever think it them. Its always the bid school.
10:26 am on November 18th, 2010
Lowder has “served” two consecutive terms on AU’s Board of Trustees which is against policy. How he got the governor of Alabama to appoint him is a book of manipulation, greed and ego. Fans look at the history of Lowder’s involvement with multiple probations resulting for AU. The “midnight plane ride” to Lousiville is only one example. Lowder needs to be removed from Board of Trustees ASAP. The President serves at the pleasure of the board so what can he do. The current AD is a Lowder “Lap-dog” so Jacobs will do nothing.The alums and everyone who cares about AU should e-mail, phone, etc. to get Lowder removed from the board.
11:31 am on November 18th, 2010
the excuses coming from auburn fans are hysterical. everyone is to blame but the people involved. we will see who is dished the plate of crow wont we.
12:07 pm on November 18th, 2010
There’s still more smoke than fire, but the smoke is billowing now. I’d be surprised if Auburn,Florida, and to a lesser extent Miss. St. aren’t set back 5-10 years recruiting top talent by the time this is over. I’m not gloating I’d be surprised if Ohio State doesn’t take a hit in the near future . There’s just too much money at stake and not enough oversight. The NCAA to me is a joke they focus on little things where there old rules don’t make sense, and do next to nothing when there appears to be hge improprieties.
1:11 pm on November 18th, 2010
It only use to be a puff now the smoke is billowing tremendously maybe even a few flames. Yes there are a lot of unanswered questions. It is obvious to me the FBI has something about the Newton’s receiving pay for play, or they would not be asking questions. Time for Auburn to own up before they get their doors closed. By the way great article and research!!
1:49 pm on November 18th, 2010
I Love Alabama and I am scared of Cam Newton!!!!
1:54 pm on November 18th, 2010
Everyone get real! AU isn’t the only school paying players. This isn’t new news! Players are put on payrolls at a Booster’s business and receive a “monthly paycheck” but they never darken the door of the business. There are so many ways around that rule . . .but LET’s pose a question. If FL paied CAM, how much did they pay Tebo?
10:58 pm on November 18th, 2010
You think it would matter if Auburn players were on Victoryland payroll. I don’t know if the practice was stopped, but Dameyune Craig worked there his senior year. I always thought it a little odd that Craig could work in a gambling hall while competing in the NCAA. Of course I wonder how “clean” those books are now?
5:23 pm on November 19th, 2010
I’ve also heard from reliable sources Osama bin laden is hiding in the Newtons basement, Cam Newton is an alien, Big Foot set Toomer’s on fire and Secret science experiments by Auburn University caused global warming. Remember when the News and Entertainment were two different things? Care to compare sources, bet mine are as reliable as yours.
2:17 pm on November 23rd, 2010
Wow….you fell hook, line and sinker for a posting on a LSU football message board! The guy has admitted he made it all up. It’s amazing what counts as journalism anymore. You are pathetic!
5:57 pm on December 18th, 2010
There is another interesting McGregor story. There is a civil suit that has been filed involving McGregor and his casinos. The civil acase alledges that former Birmingham mayor Larry Langford- now in federal prison - won 55 jackpots at bingo casinos, most owned by McGregor.
The suit alledged that McGregor rigged the machines to pay Langord. Many people believe many, many current Auburn players have been hitting jackpots at McGregor’s bingo near Auburn.
10:07 am on December 21st, 2010
As I continue to post, Lowder has proved that he “runs” AU by controlling the money. The Auburn family should call, write, e-mail their representatives, etc. to get Lowder removed from AU Board of Trustees immediately. Next, Lowder’s personal lapdog, Jacobs, should be removed from the Ad position.
7:27 pm on March 4th, 2011
Lieder is leaving his seat when it expires this year. Common knowledge. Lowders funds have been tied up due to lawsuits that have been filed. Common knowledge. There are no wiretaps tiring anyone to Auburn football. Sorry your TMZ references were old news. Sorry hack job.
Let’s talk about PBJ and his problems. How about Don Leeburn doing the gymnastics coach at UGA. How about Don providing a jet to take the team to NYC. How about Don provided jobs for UGA football players mother so he would sign with UGA. How about these but Brooksie is too scared to write about his alma mater. Like all other UGA fans he gas penis envy or rather lack of championships.
Thought you were better than these hack jobs.
6:16 pm on May 13th, 2011
Major……Auburn is fixing to get their a$$ busted and you know it too…………..War UR a Loser