Liberty University may still owe Falwell $10.5 million despite his resignation over swinger scandal: report

On Tuesday, The Wall Street Journalreported that even though Jerry Falwell, Jr. has resigned as president of Liberty University, the institution may still owe him up to $10.5 million, according to a person familiar with his employment contract.

"Mr. Falwell is due his $1.25 million salary for two years, followed by a lump-sum payment of about $8 million, because of a clause in his contract that allowed him to resign with full pay if his responsibilities were curtailed, which they were when he was put on an indefinite leave of absence two weeks ago, the person said," reported Ian Lovett and Andrea Fuller. "Mr. Falwell has agreed to consult for the school during its transition to a new administration, the person added."

"In an interview late Monday night, Mr. Falwell said he wouldn’t have to sue to get paid," said the report. "'I didn’t break any rules — I get my compensation,' he said. He noted earlier Monday that some rules that apply to Liberty students, like a ban on alcohol, don’t apply to staff."

Falwell resigned amid revelations that he and his wife had a salacious sexual arrangement with a pool boy. He initially denied reports he was resigning, but eventually caved and agreed to step down.