SPARTANBURG, S.C. (CN) – Michigan head football coach Rich Rodriguez defaulted on a $3.6 million loan to build condos near Virginia Tech, a bank claims in Federal Court.
Nexity Bank claims that in September 2007 Rodriguez and four partners borrowed more than $26 million under the corporate name The Legends of Blacksburg LLC to build about 80 condos next to Virginia Tech’s Lane Stadium in Blacksburg, Va.
The $26 million loan was later reduced to $3.6 million – the cost of the land – as the project struggled economically.
Nexity says the loan matured in May, but Rodriguez never paid.
News of the lawsuit surfaced while Rodriguez fended off an investigation into whether he had his players practice longer than the NCAA allows.
Michigan opens its season on Saturday against Western Michigan.
With interest, the bank says, Rodriguez owes it $3.75 million, and interest is accruing at $933 per day.
The bank is represented by Wesley Few of Ellis Lawhorne in Columbia, S.C.