UCLA Chancellor Charles E. Young announced Friday that fallen junk bond king Michael Milken has agreed to cancel a controversial contract that allowed the convicted felon to use the Westwood school's name to sell videotapes of his MBA lectures last fall.
UCLA came under heavy criticism for its arrangement with Milken, the high-flying 1980s financier who was found guilty of six securities fraud violations. Under the contract with Milken's EEN Communications Network to produce the videotapes, UCLA waived its legal rights and allowed Milken to use its name in exchange for 5% of the profits.
Two state senators lambasted the idea of the contract and its provisions, and UC regents recently asked administrators to approach Milken to cancel the deal. Young said Friday that after amicable discussions, Milken agreed to release the school from the contract but that his company would proceed with the project and donate completed videotapes at each UC campus.