Former coach Mark Gottfried sues NC State over settlement payments

Former NC Statebasketball coach Mark Gottfried sued the university in federal court on Tuesday, alleging the school stopped making settlement payments owed to him after he was fired in February 2017.

In the lawsuit, Gottfried's attorneys wrote that NC State sent him a "Notice of Intent to Discharge for Cause," in which the school purportedly alleged that the coach had "induced the university to enter into payment arrangements" in a separate termination agreement from his contract with the school.

The lawsuit says NC State and its attorneys conceived the idea of the termination agreement, which was "was prepared, reviewed, and approved by N.C. State and its attorneys."

In July 2019, NC State received a notice of allegations from the NCAA regarding the Wolfpack's recruitment of former star player Dennis Smith Jr. The allegations surfaced in a federal criminal trial involving bribes and other corruption in college basketball.

The NCAA alleged two Level I violations (the most serious) against the school, including a failure-to-monitor charge against Gottfried, who is now coaching at Cal State Northridge.

Former Wolfpack assistant Orlando Early also is accused of helping facilitate a $40,000 payment from former Adidas consultant T.J. Gassnola to Smith's family in October 2015.

The NCAA infractions case is being handled by the Independent Accountability Resolution Process.

Many coaching contracts include clauses that allow schools to fire coaches with cause -- and without having to pay buyouts -- for Level I NCAA violations.

At the time of Gottfried's firing, he had three years of base salary, a total of about $2.28 million, left on his deal.

"N.C. State did not have to enter into a separate contract to terminate Gottfried's employment; it could have unilaterally terminated without cause by the express terms of Gottfried's existing employment agreement," the lawsuit says. "But N.C. State benefited from entering into a written termination contract by receiving not only Gottfried's promise to finish the season and postseason, but also clarity and finality with regard to future consideration. Accordingly, N.C. State drafted and presented a written contract, negotiated the final terms of the written contract, and ultimately executed a written contract for termination."

The lawsuit says NC State made payments to Gottfried for several months but stopped making them on Aug. 31, 2018.

"After several months of performing its post-termination payment obligations, N.C. State stopped performing," the lawsuit says. "N.C. State lacks any good faith basis for avoiding its contractual obligations to Gottfried. Gottfried has attempted to persuade N.C. State to honor its promises voluntarily, but N.C. State has refused. Thus, Gottfried seeks the aid of the Court."