Bluegrass Sports Commission fires CEO and orders financial review
The Bluegrass Sports Commission has terminated Chief Executive Officer Brian Miller after discovering “possible inappropriate business activities” as the commission struggles with financial issues stemming from the Barbasol PGA Tournament this summer.
In a letter dated Feb. 15 to the Bluegrass Sports Commission Board of Directors, the board’s executive committee said it was undergoing a management review and “comprehensive review of its operations.” The letter, which was obtained by WKYT, said the executive committee decided to cancel Miller’s contract after it met with Miller regarding “operational and financial activities.”
It’s not clear when Miller was fired. His name has been removed from the Bluegrass Sports Commission website.
Miller said in a statement to the Herald-Leader that the commission’s financial woes were caused by a vendor who failed to pay. Miller said he personally loaned the commission money to keep it afloat.
“My employment was terminated because of the financial strain put on the Bluegrass Sports Commission by a significant vendor’s failure to pay,” Miller said. “ I have had to defer my compensation and loan the commission funds to make payroll for the commission’s employees. A financial review will only further support the sacrifices my family and I have made to further the commission.”
The letter said board members met with commission staff regarding “possible inappropriate business activities.” The board decided the executive committee should conduct a thorough review of business transactions and a financial audit. The findings of the executive committee will be presented to the full commission board, the letter said.
The Bluegrass Sports Commission, a nonprofit that brings the Bluegrass State Games and other sporting events to Central Kentucky, was a key sponsor of the Barbasol PGA Tournament in Jessamine County in July. The event was managed by a non profit, PGALEX Inc., which is connected to bd Global, which is headed by former Bluegrass Sports Commission chairman Brooks Downing.
The letter said Bluegrass secured $1.3 million in sponsorships for the PGA event but has not yet been paid by bd Global and PGALEX Inc. It’s not clear how much the commission is owed by PGALEX Inc.
Downing said Thursday Bluegrass Sports Commission and other vendors have not been paid in full because of a dispute between the PGA Tour and PGALEX Inc. over payment for the 2018 event.
“They have been paid some of the commission for the sales efforts on the 2018 event,” Downing said of the Bluegrass Sports Commission. “We have been in a dispute with the PGA Tour. They are withholding some of our sponsorship funds and other dollars.”
Downing said lawyers on both sides are trying to work through the issues and get money to vendors and charities. Downing still runs other PGA Tour events, most recently two events in the Bahamas, he said.
“We are not going to be involved in 2019,” Downing said of the Barbasol PGA event.
Downing was key to bringing the PGA event to Kentucky and was board chairman at the time, the letter said. Downing stepped down from that post after bd Global and PGALEX Inc. got the contract to manage the event.
Downing hired Miller as executive director. Downing said he could not speak to why Miller was fired.
Calls to several members of the commission were not immediately returned.
PGA Tour officials also did not immediately return an email seeking comment. Downing said in October 2017 the Barbasol Championship would remain in Kentucky for three to five years.
The Barbasol Championship is still listed on the PGA Tour web site as taking place July 15-21 at Keene Trace Golf Course outside of Nicholasville. A call to a representative at Keene was not returned. Some of the 2018 tournament was hampered by severe storms. It also took significant capital investment to build television and other facilities for the event, Downing said.
Beth Musgrave: 859-231-3205, @HLCityhall
This story was originally published February 21, 2019 at 2:57 PM.
