Negotiations rarely work like this, though with longer contracts and more aggressive buyout penalties, they could get there, I suppose.
What’s the typical term for a new coach? 4 years? He doesn’t know what he’s stepping into, so he’s not going to agree to take all the risk if the first two years are tough. New guy, new system, injuries, talent, etc. who knows.
Maybe you make a big deal out of the third year early term right if he sucks, but my guess is you do not hire a coach you actually want by making that the contract term you care most about. Negotiations signal things. If that’s the big idea term to push, you’re probably hiring the wrong guy or agreeing to too much severance as a general matter.