NEWPORT, R.I. - Academic Financial Services, which had agreed to a $3.45 million deal with the company hired to sell the Sun Dome's naming rights only to be denied approval by the University of South Florida, withdrew its offer Tuesday.

Action Sports Media, commissioned by USF two years ago to sell the naming rights, had secured a $3.45 million deal over six years from Tampa-based company Academic Financial Services (AFS) to rename the Sun Dome. However, on May 31, Sun Dome Inc. President Steven Oscher denied approval over concerns of the student lending industry.

Since then, Action Sports Media (ASM) and USF had been at odds over whether the school could or could not approve naming rights for the Sun Dome. Complicating the deal was AFS CEO Wayne Morgan's background, which included several arrests and guilty pleas between 1993-96 and in 2003.

"I'm very pleased the controversy has ended," Oscher said Tuesday. "But it's important to add this issue was never about Mr. Morgan or AFS. The focus of our concern was with the current state of the student loan industry.

"It has been very gratifying to watch and listen to the positive reaction the Sun Dome and University of South Florida has received as a result of their position on this issue."

Morgan, 36, said Tuesday because of the university's reluctance to have a naming rights partner in this student loan industry, "we felt that it was best to move on."

"We have always been completely supportive of USF and the Bay area as a whole and will continue to do so," Morgan said. "At this time we feel it is best to allow the Sun Dome to look for another partner for naming rights.

"Our intentions were to help the Sun Dome, the community, the company and our employees."

Action Sports Media CEO Gordon Whitener refused comment Tuesday afternoon. Action Sports Media general manager Tom Veit, who made the deal with AFS, did not return phone calls, E-mails or text messages seeking comment.

If USF had approved the naming rights deal, Action Sports Media would have received nearly $1.5 million of the $3.45 million with about $2 million going to USF.

After Oscher denied approval of the naming rights with AFS May 31, Action Sports Media's chief financial officer, Jerry Felix, sent a letter to Oscher the next day, calling his decision "unreasonable" and said his company "formally rejects" the Notice of Withheld Approval.

"We intend to proceed with the AFS sponsorship and expect the full cooperation of the Sun Dome and related parties in the execution of this sponsorship agreement," Felix's statement said.

Whitener, in a letter to Oscher and USF, said neither USF nor Sun Dome Inc. had the right to approve or reject the sale to AFS.

Whitener said in a statement last week the Sun Dome agreed that its approval to the sale of the naming rights would only be required if the sale was for less than $400,000, or for a term of less than five years or more than 10 years, or if the new signage would be larger that the existing signage.

In a letter dated June 7, Steven D. Prevaux, of USF's general counsel, indicated the university might take legal action against Action Sports Media if it continued to pursue the deal with AFS.

"Aside from the various legal claims, damages and attorney fees and costs that ASM would consequently incur, the business sense of attempting to force a student-loan lender naming upon a university, especially at this point in time, simply escapes us," Prevaux said in a statement to Action Sports Media.

Both Action Sports Media and USF's general counsel denied requests from The Tampa Tribune to obtain a copy of their contract concerning Action Sports Media's deal to sell the Sun Dome naming rights.

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By BRETT McMURPHY The Tampa Tribune

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