Sometimes those naming deals backfire, you know?

Scott K.  Ginsburg, a media mogul who got a J.D. from Georgetown Law Center in 1978, had been wooed by the school’s development team for a major gift when he was riding high, amassing billions in the 1990s. He agreed to contribute some pocket change–five million bucks—to build a new fitness center that would bear his name. The deal was put into writing, and the University issued a cheerful press release. Then, in 1999, shortly after the agreement was reached,  the Securities and Exchange Commission filed suit against Ginsburg, accusing him of passing along inside information to his father and brother. A jury agreed with the SEC, and he was orderedto pay $1 million in fines. After a flurry of appeals, the verdict stuck. (NOTE: In the first version of this post, I implied that this was a criminal case. It wasn’t: this was a regulatory lawsuit, and a civil verdict. A dumb error on my part, and I apologize to readers and Mt. Ginsburg for the misinformation.)

While all of this was going on, the Law Center, understandably, got nervous. Although Ginsburg was not a practicing attorney at the time, law schools don’t like having facilities named after grads who have been found to have violated laws or regulations in high-profile cases. In 2002, then-Georgetown Law Center Dean Judith Areen sent Ginsburg a letter thanking him for his support but also asking to revise the agreement, eliminating the promise of naming rights.  Areen said the school would find some way to “honor your gift without generating negative media coverage.”  Ginsburg, however, refused to sign on. As the years went by and the school continued to promote his gift as enticement to other donors as well as hitting him up for more money, he assumed the Scott K. Ginsburg Health and Fitness Center was under construction. There’s a fitness center, all right, on the GULC campus, but Ginsburg’s name isn’t on it. Now he is suing the Law Center, alleging that it reneged on the deal. Continue reading →