Better Retain Perry Mason : Regents want to get UCLA out of that Milken deal--good luck

Michael Milken was called the junk bond king for good reason. The convicted felon is a shrewd operator. He certainly cleaned UCLA’s clock when he entered into a now-controversial contract with the university that has caused the regents of the University of California deep embarrassment. So much so that the regents rightly have told UCLA to look for a way out of the contract--however unlikely that possibility is.

Milken did too good a job in crafting a deal with UCLA to market videotapes of his past lectures at the Westwood campus. The contract allows him to keep 95% of the profits from the sale of videotapes. Further, the contract even waives UCLA’s right to rescind the agreement or file an injunction against Milken. That apparently puts UCLA in the uncomfortable position of having to ask Milken if he would (pretty please) amend the contract.

People now wish to prevail upon him to set aside his business instincts and consider the priceless reputation of the UC system. For the controversy is not simply about money, which certainly Milken doesn’t need and, regrettably, UCLA does. It extends beyond that to the lack of a comprehensive UC policy for commercializing of university lectures beyond the campus.

Certainly UCLA officials who signed the contract last fall on behalf of the regents should have protected the university’s interests with acuity greater than that of first-year law school students. It might have been difficult to hang tough when Milken and his family made a $3.3-million contribution to UCLA shortly before the deal was finalized. But UCLA Chancellor Charles E. Young, who is less than enthusiastic in approaching Milken now, is being asked to go to Milken, hat in hand, for a different reason.

Milken served himself well in the UCLA contract; no one faults him for that. At the risk of sounding naive, we think Milken has a chance here to look beyond self-interest and pursue the greater good. Milken has an opportunity to give UCLA a break. He should do so.