May 22, 2012
Mayor Burchett Statement on KTSC Board
Mayor Burchett letter to Treasurer Wilson
KNOXVILLE, Tenn. (WVLT) -- Knox Co. Mayor Tim Burchett has called on Knoxville Tourism and Sports Corporation CEP Gloria Ray, the KTSC Board leadership, and its executive committee to resign.
“It is now obvious that a serious change is needed in the leadership of the Knoxville Tourism and Sports Corporation," said Burchett. "The KTSC is an organization that receives millions each year in Knox County tax dollars, and I have lost confidence in the organization’s leaders. Worse, they have lost the public’s trust."
"We are at that point now, and it is time for these individuals to step down and begin the process of restoring transparency and, ultimately, public trust," Burchett added.
Burchett also sent a letter to Knox Co. Comptroller Justin Wilson asking Wilson's office to conduct an audit of the KTSC's financial dealings, citing his grave concerns and "lack of confidence in the due diligence, oversight, and stewardship of taxpayer."
Additionally, Burchett announced he will appoint Knox Co. Commission Chairman Mike Hammond and Susan Rothchild to fill the board's two vacant seats.
“There are many good people on the KTSC Board who have been kept in the dark, and they need to be given the chance to do their job. At the end of the day, though, public confidence must be restored.”
The criticism comes over how Gloria Ray's bonuses were structured.
She could get as much as an additional 50% of her salary if KTSC brought in $110,000,000 into the Knox County economy.
Hundreds of events counted towards that goal; from large, multi million dollar sporting events, to small events like local weddings or local sorority meetings.
She also got financial incentives for any mention of Knoxville or some of the regions assets in national or international press. Even use of the term "Women's Basketball Hall of Fame" in any story.
The KTSC board will meet Friday at 1:30pm to discuss what part, if any, of her contract was created illegally.
They will also discuss Ray's future and, possibly, the future of some board members.
Correction:An earlier version of the story claimed Mayor Burchett asked the entire board to resign. In actuality, he only asked the board leadership to step down
