ASMSU has agreed to pay an arbitration settlement with a music promotions group because of a campus appearance from rap artist Ludacris more than two years ago.
MSU's undergraduate student government paid $6,000 last month to BTM Productions, a promotions group that signed the Atlanta-based rapper to perform at the Auditorium during Homecoming Week in October 2001.
When Ebony Productions, a student organization under the programming board of ASMSU, brought Ludacris to campus, there were disagreements with the promotion company about the date and location.
BTM Productions officials argued the crowd in attendance didn't meet their expectations.
Andrew Schepers, Student Assembly vice-chairperson for internal affairs, said the concert date was changed because it conflicted with the Cold War, the Spartan Stadium hockey game between MSU and the University of Michigan.
ASMSU has a risk-management fund, Schepers said, but because of the brief amount of time the organization had to settle the arbitration, funds were taken from the $52,657.63 budget for the ASMSU Special Projects fund.
A bill to move the funds between accounts will go through the next Student Assembly meeting.
Barry Schlussel, the attorney who represented BTM Productions during arbitration, and a BTM Productions spokesperson could not be reached for comment.
Theresa Kelley, assistant general for MSU's general counsel, represented MSU during BTM's arbitration with the university.
"Ludacris performed as everyone agreed, and everyone thought that was that," Kelley said.
But in December 2001, BTM Productions gave ASMSU a demand for arbitration for $75,000, Kelley said.
She said BTM Productions was given several alternative dates to choose from before a date was settled on and the contract.
A judge found in favor of BTM in October 2002, Kelley said, but MSU disagreed on the ruling and filed a lawsuit against BTM, who filed a counter claim for $20,000.
The final settlement in the fall of 2002 required MSU to pay $11,000, including $5,000 in lawyer fees for BTM.
"Paying for BTM's lawyer fees was one of the major issues we disputed," Kelley said, adding that MSU paid the legal fees, and ASMSU paid the settlement.
BTM agreed to settle, because it became too expensive for them to continue its legal battle against MSU, she said.
"They got tired of fighting with the university, and they seemed happy to take that sum and just walk away," Kelley said. "Or at least that was the picture painted by their lawyers."
