The Gateway School District will pay nearly $32,000 to former athletic director Terry Smith to keep a federal discrimination complaint from reaching a courtroom.

Smith filed a complaint against Gateway in 2012 with the federal Equal Employment Opportunity Commission (EEOC) in which he said district officials' decision to turn his job as athletic director into a half-time position was racially motivated.

The EEOC enforces federal laws that make it illegal to discriminate against someone because of the person's race, color, religion, gender, national origin, disability or age.

Board members said in 2012 the move was part of a broader effort to cut costs.

Smith did not return a phone call seeking comment Tuesday and his attorney, Domenic Bellisario, declined to comment.

The board voted 9-0 last week in favor of the settlement, which instructs the district to pay Smith $31,901, in addition to $18,098 for Smith's legal costs, according to the settlement.

Gateway taxpayers will pay about $2,700 of the settlement, and the district's insurance plan will cover the remaining balance, Gateway Superintendent Nina Zetty said Tuesday.

“Most out-of-court settlements have to do with economics,” Zetty said.

“The cost to take a case to court typically well outweighs the cost of settlement.”

When the school board cut the athletic-director position to half time in 2012, it also prohibited an athletic director from coaching a team.

Board members said the move would prevent favoritism toward one athletic team.

There also were third-party investigations of the football team, conducted at the behest of district officials in the months leading up to the personnel move.

Some Gateway players were investigated by the WPIAL in the 2012-13, when district officials suspected the players lived outside of the district, but all were cleared to play.

One player's transfer was denied by the WPIAL, and the decision was overturned by the PIAA.

The district hired a private investigator in 2012 after some parents said football equipment was being used outside of district events, but the investigation found no improprieties.

Under Smith, who is a Gateway graduate, the varsity football program was a powerhouse in Pennsylvania and garnered national attention.

Smith amassed a 101-30 record over the course of his 11-year Gateway career.

His teams reached the playoffs every year, and Gateway was WPIAL Class AAAA runner-up four times.

When reducing Smith's role with the district was discussed, he received passionate support from football players, parents and members of the NAACP who attended school board meetings.

The school board in 2012 rejected a $57,000 donation that would have covered half of Smith's athletic director earnings and also his football coach salary.

His total salary was just over $100,000 for the two positions.

Smith resigned from the athletic-director position in 2013.

He left for a job as the wide receivers coach at Temple University and now is Penn State's cornerback coach.

Gateway parent Tammy Richardson said Tuesday the settlement is proof that school officials forced Smith out of the district for reasons other than his employee performance.

“It's funny how Gateway now is willing to pay Terry $32,000 in a settlement, but yet the school board declined an offer to cover Terry's salary,” Richardson said.

Then Gateway school director Steve O'Donnell said Tuesday the decision to reduce the athletic-director position never was racially motivated, but the settlement might be a good thing for the district.

“It does close this chapter and puts it behind the district,” he said.

Kyle Lawson is a staff writer for Trib Total Media. He can be reached at 412-856-7400, ext. 8755, or klawson@tribweb.com.

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