SDSU campus. From San Diego State to John Moores: "We are thrilled to have your involvement in San Diego State University."

When it was announced two weeks ago that John Moores had pledged $20 million toward construction of a $75 million cancer-research center at the University of California San Diego, Los Angeles Times reporter Tony Perry wrote that it was "another sign that the city has hit 'the philanthropic big leagues.'" Perry quoted Bob Kelly, president and CEO of the San Diego Community Foundation as saying, "Just 10 years ago, it was an enormous deal if someone gave $10,000 in San Diego."

John Moores. Reputedly worth $500 million or more, he bought the Padres in 1994 and ever since has pitched millions into local charities and schools.

Moores, of course, is not our first Daddy Warbucks. That honor goes to C. Arnholt Smith, whose interlocking corporations back in the 1950s and 1960s owned the town. The former bank teller who rose to become president of and chief stockholder in the United States National Bank, managed to gain control of everything from a shipyard (National), to an airline (Air California), to taxis (Yellow Cab), to a tuna cannery (Sun Harbor), and a baseball team, (the Padres). He became best friend of then-president-to-be Richard M. Nixon, and shoveled millions into his campaigns.

Weber to Moores: "John, the vision of the San Diego Padres playing in the world's finest facility along with a San Diego State University academic center, and a solvent, progressive and thriving Department of Athletics is compelling."

Smith's beneficence earned him the "Mr. San Diego" award from the Grant Club in 1961 and in 1966 the "Gentleman of Distinction" honor from another group of civic boosters. A buddy of Jim Copley, Smith enjoyed the flattering attention of Copley's Union and Evening Tribune right up until his business empire went bust in the mid 1970s. Smith's downfall preceded Nixon's by a year, as federal regulators closed in on his bank and discovered he had looted it by making an estimated $100 million in unsecured loans to his dummy corporations.

Rick Bay to Moores: "I was pleased that you and Becky could attend our basketball game against Colorado State."

Photo by Joe Klein

The bank's collapse in 1973 was at that time the biggest in American history. Angry investors lost millions of dollars as the value of stock in his company plunged to zero. Smith pled no contest to four federal bank-fraud charges in 1975 and escaped prison, but in 1984 he ended up doing a six-month stretch on state-tax fraud charges in a Barrio Logan halfway house. Smith's name became synonymous with the city's reputation for harboring fly-by-night financiers.

SDSU athletics building. Weber to Moores: "I would like to express my gratitude for your generous gift of $7,522,500 for the creation of the Athletics administrative complex, softball stadium, and tennis complex."

After Smith's death in June 1996 at the age of 97, financial mogul Leon Parma paid tribute to Smith. "He brought a lot of industry to town and did a great deal for San Diego, and I think his thoughts were always for San Diego." Former Democratic congressman Lionel Van Deerlin agreed: "I don't know of many people who've done more for San Diego. He was a real captain of industry and where the hell would we be without him?" Said Buzzie Bavasi, president of Smith's Padres: "He did more for San Diego than any other man I met. He always told me whatever was good for the city was good for C. Arnholt and vice versa. I'm sorry to hear he's gone."

Weber memo to Moores: "I have received a fax from James Greene; we will get right on it. My Exec Assistant, Barbara Hartung, will contact him and explain how to proceed with application."

John Moores is San Diego's latest Warbucks incarnation. A Texas born-and-bred computer entrepreneur who is reputedly worth $500 million or more, he bought the Padres in 1994 and ever since has pitched millions into local charities and schools. These institutions, in turn, have been happy to endorse his taxpayer-subsidized downtown baseball stadium.

Moores has also become enmeshed in the Valerie Stallings scandal. Stallings, a San Diego city councilwoman who has repeatedly voted in favor of Moores's downtown stadium, made a well-timed investment a year ago last March in Neon Systems, a start-up company controlled by Moores. She held the stock a month before selling it for what she said was a $7600 profit. Moores, as did C. Arnholt Smith, gives heavily to political campaigns, including those of City Attorney Casey Gwinn, who has said he could find nothing wrong with Stallings's dealings. Moores has denied to Union-Tribune editorial writers that he had anything to do with the Stallings transaction.

Moores also befriends academia. In 1991 he donated $51 million to his alma mater, the University of Houston. In addition to his $20 million pledge to the UCSD cancer center, he has become a major supporter of San Diego State University, contributing at least $28.6 million to a variety of sports and athletic causes, including the school's Tony Gwynn Stadium, where its baseball team plays, and a new athletic office complex.

What has Moores gotten in return from these schools? A review of correspondence to Moores from SDSU administrators over the last several years, obtained under the California Public Records Act, shows that school leaders have been solicitous of their benefactor.

When Moores steered a prospective student their way, the letters show, SDSU president Stephen Weber carefully oversaw the admissions process. When Moores wanted a new stadium for the Padres, Weber proposed that SDSU become involved in order to provide tax breaks for Moores. When the university sought donors to fund a "Presidential House" in Coronado for Weber, the letters show that SDSU officials repeatedly mentioned the matter to Moores.

The correspondence shows that SDSU officials, including athletic director Rick Bay, came to Moores seeking to raise funds for the university's financially troubled athletic programs. Presented here is a selection of letters between SDSU officials and Moores.

December 9, 1997

Mr. John Moores

JMI

12680 Highbluff, Suite 200

San Diego, CA 92130

Dear John:

This letter is to introduce the concept of a public/private partnership, which would enable the financing and constructing of a baseball stadium for the San Diego Padres. The partnership would be between you and San Diego State University, with whom you have obviously established a history of philanthropy.

Such a partnership would require the ability of SDSU to link our educational mission with the ownership/operation of a baseball stadium. We believe that challenge might be met in a variety of ways, most significantly with the possibility that SDSU would establish an educational center with programs and curricula meeting regional educational needs in the fields of sports management, hospitality and hotel/restaurant management.

The partnership also assumes that whatever personal stake you intend to contribute to the baseball stadium is significantly stretched by the multiple tax advantages associated with a charitable contribution. With this contribution, and assuming naming-rights revenue and sufficient operating income, SDSU would seek to purchase a site and secure construction financing either as a governmental agency, through one of our existing nonprofit corporations, or through a newly established nonprofit. Under such a scenario, a public vote would not be required. The stadium would be leased back to the Padres, and the site would be available for joint use for our educational programs. Perhaps there would be an opportunity to generate revenue in support of our athletic program as well.

Our objective in this potential partnership is to find a synergy between the growth needs of San Diego State University while enabling San Diego to be home to the Padres and the finest baseball park anywhere! Obviously this is a bold and untried proposition, with numerous challenges requiring legal and financial advisors for each of us to evaluate the real possibilities that may exist. We are intrigued by the possibilities. We have done some very preliminary investigation that suggests the idea has some merit. If you agree the concept may be viable, we are ready to engage in further discussion and analysis.

John, the vision of the San Diego Padres playing in the world's finest facility along with a San Diego State University academic center, and a solvent, progressive and thriving Department of Athletics is compelling. Perhaps our partnership can facilitate this dream.

Sincerely,

Stephen L. Weber

President

April 6, 1998

Mr. John Moores

Post Office Box 78

Del Mar, CA 92014

Dear John:

I would like to schedule a meeting with you in the near future to talk with you regarding two issues that are important to me. First, we have a small gift for you in recognition of your being one of the inaugural members of the Tower Society at San Diego State University. The Tower Society was created during our centennial year to recognize and honor individuals and organizations that have made cumulative gifts in excess $100,000 to SDSU. Second, I want to introduce you to Tere Mendoza, our new Vice President for University Advancement. My office will phone you within the week to see if there is a convenient time for us to meet.

I have been following the Padres during spring training and see they are doing wonderfully. I hope everything is going well for you. I look forward to seeing you soon.

Sincerely,

Stephen L. Weber

(handwritten on SDSU, "The President" letterhead)

July 30, 1998

Dear John,

I have just learned, to my dismay, that Susan and I will be out of town on Sept. 8, and will not be able to join you and President and Mrs. Carter for the game. My executive assistant when I served at the State University of New York, Oswego, is being inaugurated as their new president; I have promised I will attend.

I have received a fax from James Greene; we will get right on it. My Exec Assistant, Barbara Hartung, will contact him and explain how to proceed with application. She will also alert Dan Nowak, V.P. for Student Services, to keep an eye out for the application.

Thanks again for thinking of us for the ballgame with the Carters.

Steve

(handwritten on SDSU, "The President" letterhead)

August 3

Dear John,

We have spoken with James on the phone. He has submitted and we have received his application. The application is being processed now; we expect no problem.

We will get back to James with a decision as soon as possible.

Steve

P.S. Glad to see that the stadium deal is moving forward. Obviously you have been more successful in dealing with the mayor than we were.

(handwritten on SDSU, "The President" letterhead, undated)

Dear John,

I just learned that James Greene has been admitted. Let us know if there is any way we can be of further assistance.

Steve

September 14, 1998

Dear John:

Just a note to tell you that James Green has enrolled at San Diego State University. I was pleased to see that he is taking a couple of physics courses and a math class.

I asked Barbara Hartung, my Executive Assistant, to meet with him. He came into the office last week. She tells me he is a fine young man. She tried to make clear that we are here to be of whatever assistance we can.

Let us know if you see anything further we can do.

Steve

(handwritten on SDSU, "The President" letterhead)

December 14, 1998

Dear John and Becky,

Thank you for the commemorative bottle of "Padres" wine.

We will savor (and save) it as still another expression of your friendship.

Congratulations, again, on a great year.

Steve

March 4, 1999

Mr. John Moores

12680 High Bluff, Suite 200

San Diego, CA 92130

Dear John:

Thank you for facilitating our visit with Rick Majerus. Needless to say, we appreciated the transportation, but, more than that, we appreciated your perspective on matters of this sort.

During our conversation on the plane you mentioned your expectation that there would be a major hotel involved in the baseball development. You said that you thought there was a good chance it might end up being a Westin. For what it is worth, we did a quick review on the Internet and were not able to find any hospitality/hotel management programs that they have sponsored. I think that is good news. It suggests that Westin might be open to the notion of developing a hospitality/hotel management program based in their San Diego hotel. San Diego State is definitely interested in exploring any such possibility, if one exists. Is there anything we should be doing at this point? Anyone with whom we should be speaking? If not, we will be happy to "stand at the ready."

Thanks again for the trip to Los Angeles and to Sacramento.

Sincerely,

Stephen L. Weber

President

April 23, 1999

Mr. & Mrs. John J. Moores

Post Office Box 728

Del Mar, CA 92014

Dear John and Becky:

On behalf of the San Diego State University community,

I would like to express my gratitude for your generous gift of $7,522,500 for the creation of the Athletics administrative complex, softball stadium, and tennis complex. These facilities, in conjunction [sic] with the Parking Structure V and the development of Aztec Walk, will provide tremendous enhancement to San Diego State University and our athletics plant. I understand that you are currently working with Rick Bay and Sally Roush to develop a timetable for this project, and I look forward to its initiation.

In my tenure as president, your contributions have provided us with unparalleled development momentum, while simultaneously stimulating morale. I thank you both for your tremendous impact on SDSU.

Sincerely,

Stephen L. Weber

President

July 9, 1999

Mr. John Moores

12680 High Bluff, Suite 200

San Diego, CA 92130

Dear John:

Thank you once again for your time last week to learn about the launch of our new philanthropic foundation. Tere and I appreciated your feedback and your enthusiasm about where this effort will take us in the future.

Your leadership and your personal and business initiatives continue to be a driving force in this community. When we look back a decade from now, your contributions to San Diego will stand out in the chronology of our region. We are thrilled to have your involvement in San Diego State University.

Tere and I will keep you apprised of new developments as the foundations [sic] gets off the ground in the next few months. In the meantime, please accept my sincere thanks and best wishes.

Warmest regards,

Stephen L. Weber

President

(handwritten note on SDSU, "The President" letterhead, undated)

Dear John,

Thank you for the op-ed on the school bond. Your leadership is appreciated.

And thank you also for a great first game against Atlanta. You kept this philosopher up past his bedtime!

Steve

July 9, 1999

Mr. John Moores

12680 High Bluff, Suite 200

San Diego, CA 92130

Dear John:

Thank you for agreeing to become a charter board member of San Diego State University's new Philanthropic Foundation. It is wonderful to have recruited such "all stars" for our newly emerging board and we appreciate the time and commitment you generously give to our university.

I especially want to thank you for your interest in helping with a Presidential House, the Hospitality and Tourism Management Program (HTM) and for your generous offer to establish two full scholarships for meritorious Hispanic women. I will, as promised keep you up to date on the Coronado property, wait to hear further from you on the HTM Program and suggest some language for the scholarship selection process for you and Becky to review.

I am looking forward to working with you and the Board of Directors in repositioning San Diego State University throughout the region and helping ensure that SDSU programs continue to be closely aligned to the needs of the region and that the intentions of every donor are met.

Once again, welcome aboard. You are one incredible man!

Sincerely,

Theresa M. Mendoza

Vice President

August 26, 1999

Mr. John Moores

12680 High Bluff, Suite 200

San Diego, CA 92130

Dear John:

I thought you would be interested to know that even academics are talking about Tony Gwynn and coming up with better theories!

Also, I promised to update you on the potential donation of a University House for President Weber. Our earlier possibilities are no longer viable and we have no current prospects. Steve has asked me to begin looking for reasonable properties that we may be able to interest friends in helping the University acquire. You and a couple of other individuals have expressed a concern about the lack of a University House, so I wanted to keep you updated on the status of this effort.

On a different matter, I will be meeting with our scholarship office to get the scholarship language I promised. It happened that Student Services is reviewing our scholarship resources to identify unmet student needs. It might be worth our while to consider their findings before making a final decision.

Finally, we are inviting Larry to be part of an SDSU official delegation to sign a formal academic exchange program with The Universidad de la Havana in November. To our knowledge. it will be the first official academic exchange program between the U.S. and Cuba.

I look forward to seeing you at The Campanile Foundation Board of Trustees meeting in November. In the meantime, if I can be of any assistance, please don't hesitate to call.

Regards,

Theresa M. Mendoza

Vice President

October 8, 1999

Mr. John Moores

Owner

San Diego Padres

Post Office Box 2000

San Diego, CA 92112-2000

Dear John:

As you know, you and Becky have an open invitation to join us in the President's Skybox at any home game, but I thought this game might be of particular interest to you. On November 6, 1999, the Aztecs will be playing Brigham Young University, one of the best in our new Mountain West Conference. Susan and I will be hosting other colleagues from San Diego's hospitality and tourism industry in the President's Skybox on this evening and hope that you can join us.

The festivities will begin with a pregame buffet at 4:30 p.m. I have invited Rick Bay, our Director of Athletics, to be on hand to discuss the game and predict the evening's winners. Rick always picks the Aztecs, but how he gets to that decision is very entertaining. We will then go directly to the President's Skybox to watch the Aztecs take on the Cougars.

Please call my office at 619-594-5201 if you are able to join us. I look forward to seeing you soon.

Sincerely,

Stephen L. Weber

President

January 24, 1997

Mr. and Mrs. John Moores

San Diego Padres

9449 Friars Road

San Diego, CA 92108

Dear John and Becky:

All I can say, again, is thank you. We received the additional stock and are moving ahead with the completion of the stadium, along with the add-on items for Phase 2. When all is said and done we will have a jewel of a ballpark, and it will be solely because of your generosity.

Finally, I was pleased that you and Becky could attend our basketball game against Colorado State. While we didn't win, I think you could see that our team has the same kind of grit that characterized the Padres last season. I hope that by moving into our new basketball arena next winter, we can generate significant community support that will bring many people back to our campus for the first time in years. There's no doubt that with the new baseball facility and basketball arena, we will have for the first time in our history PAC 10-like facilities on our campus.

Thank you again for everything. I look forward to seeing you at the dedication of the ballpark on February 21.

Very truly yours,

Rick Bay

Director

Intercollegiate Athletics

cc: Stephen L. Weber, President, San Diego State University, Sally F. Roush, Vice President, Business and Financial Affairs , Jim Dietz, Head Coach, Aztec Baseball

July 23, 1997

Mr. John Moores

San Diego Padres

9449 Friars Road

San Diego, CA 92108

Dear John:

This is just a note to thank you for your response to our recent conference call with Sally Roush and Andy Stallings. Your offer to partner with Dennis Wise to complete the athletic administration/hall of fame is generous beyond words. We are looking forward to pursuing that project if, and when, the proper campus master plan is agreed upon. Many of us at the University were impressed and energized by the master-plan report you commissioned from Carrier Johnson Wu. Using your initiative as a catalyst, we at the University must now come together to develop a plan that addresses both our athletic facilities issues and the redevelopment project.

In the meantime, I know that you will enjoy meeting Harry Albers, General Manager of the Foundation, when you, Sally, and Ron Roberts get together for lunch in the not-too-distant future. Also, we're looking forward to having a productive meeting with your planners on Wednesday, August 13. We intend to invite representatives from the Foundation, as well as those of us who met the last time our group came together.

Thank you again for everything. Let's stay in touch.

Very truly yours,

Rick Bay

Director

Intercollegiate Athletics

September 16, 1997

Mr. and Mrs. John Moores

San Diego Padres

8880 Rio San Diego Drive, #400

San Diego, CA 92108

Dear John and Becky:

Although we spoke by phone last week, I would be remiss if I did not again thank you for your latest gift. While I know you may feel somewhat self-conscious by our gratitude, I simply cannot overstate how much you have meant to our program. While it remains to be seen if we can make it into the PAC-10, or even remain a Division I-A program, we would not even have a chance were it not for the two of you.

As you probably know, we are working with your broker in San Francisco in selling the stock. Once those transactions are completed I hope you will give me some guidance as to how you would like us to announce this gift. The word is already out, and I believe we should make some formal announcement in the not too distant future. I will be calling you soon.

On behalf of everyone at San Diego State University, thank you again for everything.

Very truly yours,

Rick Bay

Director

Intercollegiate Athletics

cc: President Stephen L. Weber

Vice President Sally F. Roush

September 30, 1998

Mr. John Moores, via fax

Dear John:

This is to confirm your conversation with Rick Bay on Friday, September 25, regarding your involvement and generous donation of $15,000 to the men's tennis program at San Diego State University.

There are 22 schools in the NCAA Region VII. San Diego State's men's tennis team has improved from number ten in 1997 to the number one team in the region in 1998. The team advanced to the NCAA Regional Tournament for the first time in the University's history.

With your continued support, I feel we will reach our goal to be in the top ten in the nation.

It is my hope to raise $20,000 this year. This money will be used as follows:

-- $14,000 scholarships (I am in the process of recruiting two athletes for the Spring semester whom I feel will have a major impact on the team.)

-- $4000 assistant coach (we are one of three sports that does not have a paid assistant coach. My current assistant is presently completing his degree at SDSU.)

-- $2000 Aztec Athletic Foundation (10% of earmarked donations are assessed this fee to offset general scholarship expenses.)

You have been extremely generous to San Diego State University and a blessing to our entire community. Thank you again for your generosity and consideration of this request.

Sincerely,

John Nelson

Head Coach, Men's Tennis

November 20, 1998

Ms. Beverly Stengel

JMI

12680 High Bluff Drive

San Diego, CA 92130

Dear Beverly:

John asked me to contact you regarding the purchase of four season tickets to the Padres 1999 season. They are for Richie Smith, a major donor to San Diego State University, who would like to purchase the best possible seats. I will be glad to instruct him on how to proceed once you tell me whom he should contact.

Thanks in advance for your help. I look forward to hearing from you soon.

Very truly yours,

Rick Bay

Director

Intercollegiate Athletics

February 15, 1999

John and Becky Moores

JMI, Inc.

P.O. Box 728

Del Mar. CA 92014

Dear John and Becky:

It is my honor once again to thank you for your generosity to San Diego State University. Your most recent gift of stock generated $7,437,877 upon sale. An official receipt will be sent to you from University Advancement. The transactions were handled very expeditiously, and we appreciate working with the good people at B.T. Alex Brown.

John, thank you for your kind references at the Alumni Luncheon. We at SDSU take very seriously our responsibility to be good stewards of the funds you have donated, and to do our best to utilize the funds in a way that supports our Athletic Department -- and therefore the University -- in a first-class way. As you know, sometimes we have stretched our thinking and, heaven forbid, our administrative processes. But this is a good thing, and we enjoy the challenge of striving for new levels of accomplishment. Your gifts and gentle guidance have been tremendously motivating.

As always, if you would like a briefing on project status, or any issue at the University, please do call on me.

Sincerely

Sally F. Roush

Vice President

April 16, 1999

Mr. John Moores

JMI

12680 High Bluff Drive

San Diego, CA 92130

Dear John:

Pursuant to our many discussions relative to the hiring of a new high-profile head basketball coach, and in case either of us gets hit by a truck in the near future, I want to summarize our conversations, for the record. We at the university greatly appreciate your willingness to make the hiring of someone like Steve Fisher possible. However, we are not requesting any contribution at this point, but rather are asking you to help subsidize any budgetary shortfall for our men's basketball program during the length of the initial new coaching contract -- three years.

As the attached chart indicates, our new commitment, including the head coach's salary, the addition of various support staff for men's basketball, and an increase in the annual operating budget, along with an affirmative-action match to comply with CAL-NOW regulations, could total as much as $361,000 in additional expenses, even with an increase in ticket revenue of $200,000 in year one. As our ticket sales increase incrementally, the exposure of our program is reduced. Incidentally, these ticket projections are based on an average attendance of 5000 at $8 per cap. However, we intend to raise the per-cap ticket prices starting next season.

Year one also includes a one-time expense for a new filming system, as well as the increase in the annual operating budgets for recruiting, visiting-team guarantees for home games, personnel transitional costs, and Title IX adjustments. In year two, we expect our basketball operating budget will remain the same, but ticket revenue will increase by $100,000, which would mean that our estimated maximum exposure for our men's basketball budget (and its CAL-NOW obligation) would be approximately $261,000. Again, these ticket projections are based on $8 per cap. The attached chart attempts to project the annual cost of our operating budget through year three, although it is somewhat problematic to estimate normal inflationary and cost-of-living increases.

As to our commitment to improving our facilities for basketball, it is difficult to predict our plans at this point. For example, a new practice gym and weight room for basketball could be part of the new administration building complex or part of an enhancement to Cox Arena. Another alternative would be to construct a small satellite building near the arena that could accommodate a small basketball weight room and film room. The estimated cost of these projects is yet to be determined, and we need Coach Fisher's input before proceeding.

Needless to say, the best scenario regarding the operating budget is simply to sell enough tickets to cover our new financial commitment to basketball. That way, we would not have to ask you for any backup support. However, since the new commitment is expensive (even without Majerus and without any facilities improvements) and given my personal discomfort in asking you for more cash under any circumstances, I am wondering if you might reconsider the possibility of our using the earnings (estimated to be $600,000 for 1999­2000) from the capital you have already given us to balance our 1999­2000 budget. With any luck, (along with a decent basketball ticket sale), this should allow us to balance in 1999­2000 without having to do something drastic such as eliminating another men's sport from our program.

I am aware, of course, that you are concerned that this precedent might subconsciously soften the University's financial commitment to Athletics. However, the University is already funding nearly 50% ($7 million) of our operation, which is very high by Division I national standards. Since we must do everything possible to avoid asking for more University support, the ability to use the earnings from your previous gifts (at least for 1999­2000) would be extremely beneficial to us and help us through a very difficult time, both financially and politically.

Since we must seek University approval of our 1999­2000 budget at a meeting on April 28, I am hoping I can get your reaction to this request by next week or no later than April 21. I will give you a call then.

In the meantime, thank you again for all you do for us.

Very truly yours,

Rick Bay

Director

Intercollegiate Athletics

April 29, 1999

Mr. John Moores

JMI

12680 High Bluff Drive

San Diego, CA 92130

Dear John:

Thank you for visiting with me on the phone last Monday night. I appreciate more than I can say your willingness to be a "back up" (at a reasonable level for you) if I run into budget problems for the 1999­2000 fiscal year as a result of our men's basketball coaching transition. I hope that no request is necessary, but it will be a challenge to keep the program on track budgetarily until such time as we begin to sell more basketball and football tickets.

Whatever the case, I thought you might enjoy having the enclosed brochures. I know that you will be at Jordan's camp in September, and I am anxious to see the highlight tape of you in action.

Thanks again for everything.

Very truly yours,

Rick Bay

Director

Intercollegiate Athletics

August 2, 1999

Mr. John J. Moores

12680 High Bluff, Suite 200

San Diego, CA 92130

Dear John:

The 1999 Aztec football season is fast approaching, and we are looking forward to an exciting and challenging year in the new Mountain West Conference. I invite you to join us in the President's skybox to enjoy a game of your choice.

Enclosed is the season football schedule. If you would like to join us for a game(s), please contact Kim Hill, Assistant Vice President of Operations for University Advancement, at (619) 594-3575 for tickets and additional information. I look forward to seeing you and cheering on the Aztecs!

Sincerely,

Theresa M. Mendoza

Vice President

November 11, 1999

Mr. and Mrs. John Moores

JMI

12680 High Bluff Drive

San Diego. CA 92130

Dear John and Becky:

Although I know it was a condition of your latest gift that I not "thank you," I am compelled, three days later, to break my vow. We do thank you, and the truth is, we cannot thank you enough for your extraordinary generosity towards San Diego State University. We are committed to taking both the Athletic Program and the University to the next level but we would have had no chance without you. Thank heaven that you've adopted us. Thank you for your inspiration and confidence. It is now our job to build a program that is worthy of your generosity.

I should add that the most amazing part of the scenario is that John told me of the gift during the BYU game (although I think we were ahead at the time) and it just proves that we have at least two fans left.

Very truly yours,

Rick Bay

Director

Intercollegiate Athletics

December 6, 1999

John and Becky Moores

JMI Inc.

P.O. Box 728

Del Mar, CA 92014

Dear John and Becky:

On behalf of the Campanile Foundation and San Diego State University, I want to thank you for your generous gift of 200,000 shares of Peregrine Systems Inc. on November 8, 1999, in support of SDSU athletics.

Details regarding your stock gift are listed below:

Stock: 200,000 shares of Peregrine Systems, Inc.

Date of Gift: Nov. 8, 1999

High: 59 1/2

Low: 56 13/16

Average: 56 7/8

The University received $11,369,910.52 upon sale of the securities. Attached are copies of the official notice of transfer confirming the date, number of shares, and price information for the stock on the date of transfer for your records.

Thank you for your continued support of San Diego State University.

Sincerely,

Allan R. Bailey

Treasurer/Chief Financial Officer

The Campanile Foundation

December 15, 1999

Mr. John Moores

JMI

12680 High Bluff Drive

San Diego, CA 92130

Dear John:

After much internal discussion with my colleagues here at San Diego State University, I wanted to finally answer in some detail your question to me about the long-term viability of the Aztec athletics program. Also, I want to offer for your consideration a unique plan that at least one other Division I athletics department is implementing to guarantee the ongoing viability of its program.

I spent most of last Friday meeting with a major life insurance company that is working with the University of Illinois to establish life insurance policies for five major donors to the University. These are individuals who have low-basis assets that can be used to leverage sizeable gifts for a charitable foundation. The plan is to establish life-insurance contracts that would significantly compound the value of the gift. In the initial funding designs, the gift can sustain a death benefit to the institution anywhere from $3­$7 for every dollar donated to the program. The value of the program is that a donor can make a gift over a short time commitment and provide long-term viability to the university and a perpetual legacy to the donor for decades to come by leveraging the current gift.

For example, if a donor would be willing to commit a life insurance premium of $5M­$6M a year for the next five years, at the growth rate of 8% (6.38% net) it would create a net death benefit to the university of $100M, while at the same time building a cash value of between $2M­$3M over the five-year period. My strategy in such a case would be not to erode the cash value of the policy but, rather, to convince the university to loan me badly needed operating dollars each year against the death benefit of the policy at an interest rate that need not be repaid except in a balloon payment from the death benefit.

Thus, if I needed to borrow $2M­$3M a year to keep the Athletic Department going until such a time when we are more self-supporting (let's say if the Chargers leave town), and assuming the university (as the beneficiary) would be willing to lend me the money at a 4% interest rate, the cost to the Athletic Department would be $80,000­$120,000 per year for five years. This aggregate amount of principal and interest could be easily secured against the death benefit of the policy.

At the end of the day the Athletic Department would remain viable and the university would be the beneficiary of $l00M, minus any debt not repaid by the Athletic Department. This could also serve as a tremendous deferred leadership gift in any capital campaign the university may plan in three to five years. As I mentioned, the University of Illinois is moving in this direction with its key boosters in the hope that they will contribute unappreciated securities to avoid capital gains taxes and to maximize their gifts to the school.

John, I am sincere when I say that I am greatly bothered by coming to you with this idea now on the heels of your most recent generous gift for our administration building. However, with the calendar year drawing to a close and not wanting to assume anything relative to any year-end any year-end tax strategy, I wanted you to at least see this plan.

The "viability" question that you raised with me is an important one. I am going to do all that I can to make sure that the facilities that you and Becky have made possible take our program to the highest level. We have created a five-year business plan to determine what the gap might be between our relatively conservative revenue projections over the next five years and what we really need to be a competitive Division I entity within that time frame. The factors on the attached sheet show our projected budget numbers, taking into account the following three factors:

1. Restoring the budget cuts we have made over the last two years,
2. An inflation factor of 2% over the next five years.
3. An enhancement factor that adds dollars to our recruiting, budgets, coaching contracts, summer school tuition, guarantees to attract high profile visiting teams, etc.

As for income, we are assuming an average attendance of 27,000­32,000 at football games; 4000­6500 at men's basketball games; an ongoing University commitment of $5.8M a year, not counting inflation; and our own fund-raising efforts at $2.4M a year. The difference between where we think we will be and where we will need to be on average is $2.8M a year, or about our projected annual scholarship budget. The insurance plan that I have outlined would give us the borrowing flexibility to be able to cover this difference.

This is a lot to ask you to consider because I know it includes everything from the contribution of a lot of resources to a rigorous personal physical examination to secure such a policy. The insurance company assures me that the underwriting is in place and that we will be one of the first schools, along with Illinois, to actually try to put this plan in place. I would like you to see the plan and get your thoughts. Needless to say, I would appreciate your thoughts whether you decide to embrace this plan or not because there are other people I would like to approach.

Thank you for your ongoing kindness and consideration of this matter.

Very truly yours,

Rick Bay

Director, Intercollegiate Athletics