According to The News & Observer, just over 150 days after receiving the Notice of Allegations from the NCAA in regards to the alleged $40,000 payment to former men’s basketball player Dennis Smith Jr. and a few other lesser infractions, NC State has responded to the allegations with a 60-page response to the NCAA. Now that NC State has responded, the NCAA has 60 days to respond to the response. 

The response, according to the N&O, which was prepared by the Bond, Schoeneck & King law firm, calls into question the testimony of T.J. Gassnola, formerly an Adidas associate, made during a 2018 federal fraud trial. Gassnola testified that he gave the money to former assistant coach Orland Early, which after changing hands another time allegedly found its way to the Smith family. 

The N&O said the university is calling into question Gassnola’s testimony from the trial of former Adidas executive Jim Gatto in October 2018. Along with his testimony, Gassnola provided travel receipts and bank statements showing a trip to Raleigh and a withdrawal of the amount. Gassnola claims he provided to Early, who passed it on to a former trainer of Smith’s, Shawn Farmer, who in turn gave the money to Dennis Smith Sr.  

On the topic of Gassnola’s testimony, the university stated:

“There is no evidence in the trial record, including Gassnola’s testimony, nor evidence developed by the NCAA enforcement staff, that: Early provided the money to Farmer or that Farmer provided the money to the Smith family.”

The response also calls into question the motivation for the payment and the source of the money itself. It is alleged by Gassnola that he received the money from Martin Fox, a middleman for agents and financial advisors.  However, Fox is not associated with Adidas, though he is connected with agent Andy Miller, the N&O said.

Due to this source of the money, NC State alleges that it was not an inducement to play basketball at the university, but instead an inducement by Fox that should he go pro, he would sign for Miller, according to the N&O.

This would change the violation to an impermissible benefit from a third-party not related to the university, rather than a recruiting inducement paid by the school, booster or affiliate of the school, the latter of which Adidas falls under, as NC State and Adidas have a multimillion-dollar contract. 

NC State had previously dissociated itself with Miller in 2012.

According to the N&O, on the matter of the two lesser violations regarding tickets and the distribution of tickets to Smith Jr. and his family receiving an excess of complimentary tickets, the University stated that former men’s basketball staff ignored rules and “well-established process” when dealing with the ticket distribution protocol. The ticket-related violations totaled 160 but the university stated within the response that, “only 10 could not otherwise have been permissibly provided.”

This is due to the fact that Early went over certain NCAA limitations and had the names been placed on Smith’s list instead of Early’s there would have been only those 10 violations. The violations totaled just over $6,500 in impermissible benefits to Smith’s family and Famer but there were also the aforementioned issues to how the tickets were distributed, per the N&O.

According to Monday’s article, NC State athletics has since implemented corrective actions in order for these issues to not happen again.

Within the response, the University also suggested self-imposed punishments including:

• Loss of one scholarship for the 2021-22 recruiting class (or an early one if possible)

• Reduction of official recruiting visits in 2019-20

• Prohibition of unofficial visits during a two-week period of 2019-20

• $5,000 fine

According to the N&O, the next step after the NCAA’s response is likely to be setting a date for a hearing with the NCAA’s Committee on Infractions. While the most severe of the allegations are levied against former coaches Mark Gottfried and Early, the university is tied to the lesser allegations. Following the hearing, the NCAA will make a ruling and vacating wins from the 2016-17 season, a postseason ban and fines are possible.