Golden's Buyout 10 Million

[weownfsu]

Serious question, are there formulas for buyouts regardless of amounts? E.g. University of Miami will pay 20% of remaining salary? FYI I am not saying it's 20% just an example.

There could be or there could not be. In Nick Saban's first contract with Alabama, the buyout was the remaining money on the contract but spread out over double the months (e.g., if the contract had 2 years of 5 million left, Saban would have gotten paid 5 million over 4 years). The only thing we know for sure is that the buyout is not more money than the contract was worth.

 

[eleganttomcat]

https://laworgs.depaul.edu/journals/sports_law/Documents/The Buyout Clause.pdf

They gave him a contract extension after 3 straight conference championships and a BCS bowl victory? What a strange concept

 

[Vanquish9]

i don't see the comparison between golden and rodriguez. nobody is their right mind is paying to take golden from us

 

[FrancisSawyer]

RT @sportsJC16: Number for today is $35 million. The approximate cost for UM to fire Al Golden and hire a new HC and staff. Next few tweets will outline it.

RT @sportsJC16: $10 million. Cost of firing Golden with 5 years remaining on his contract. That number can be offset by $ he gets in his next gig. (Cont)

RT @sportsJC16: But $10 million is a working number. $20 million to hire the next coach ($4 million per/5 years). That gets you an upper echelon HC. (Cont).

RT @sportsJC16: Remaining $5 million goes to hiring a staff. Give or take a million. To conclude, firing Golden ends up costing UM $35 million. (Cont)

RT @sportsJC16: That's a huge whack for a private school. You can do it cheaper but that doesn't really get you anywhere. Therein lies the problem.

RT @sportsJC16: A coaches buyout is if he takes another job. UM may have language in Golden's deal post-extension that insulates them. I'm not sure on that.

I'm riding with Chise on this one. This guy doesn't know dikk. I would hope the powers that be would have more sense and foresight not to sign someone to that type of extension without having some sort of leverage built in.

Now if we just assume his numbers are correct for arguments sake and we can Al and bring in a real coach, that would be the best **** $35 million they ever spent

 

[MIA42178]

Are all of you guys idiots?

They key is not to look at total #'s, but yearly. It's not like UM will need to come up with $35mm at the end of the year!

If all the numbers are true, the buyout is probably over 4-5 years - so $2mm/y

Coaches salary = $4mm/y

Staff = $1mm/y

Total is $7mm, and we currently pay around $4-5mm at least. The difference isn't $35mm, it's $2mm a year

Spot on, you only look at incremental yearly cost. Realistically, we have been saving $3m/yr over what normal (read: competitive) college programs pay their coaching staff ($2m additional for the head coach and $1m for assistants). If we want to be competitive we should be at a much higher all-in number than we have been. It's just business these days unless you find a low paid assistant who turns out to be a great coach (which we are terrible at doing). Your sunk cost would probably only be $1m/yr with Golden assuming a full buyout and he is able to get a mid-level HC job paying about $1m/yr. I actually don't understand why that is such a big deal for our program given what we were able to pay Coker. Increased revenue from wins should easily cover a few million/year.

Good post. The buyout deal comes up every time a coach is bout to be canned. Goldens making $2.5. It costs $2.5M/yr to retain him exclusive of staff. And only $1M/yr to can him?

So why are we waiting? We will make that up in bowl revenue and licensing revenue when we hire Butch.
Give Butch same salary. Collect profits.

 

[BALLHAWKU]

RT @sportsJC16: Number for today is $35 million. The approximate cost for UM to fire Al Golden and hire a new HC and staff. Next few tweets will outline it.

RT @sportsJC16: $10 million. Cost of firing Golden with 5 years remaining on his contract. That number can be offset by $ he gets in his next gig. (Cont)

RT @sportsJC16: But $10 million is a working number. $20 million to hire the next coach ($4 million per/5 years). That gets you an upper echelon HC. (Cont).

RT @sportsJC16: Remaining $5 million goes to hiring a staff. Give or take a million. To conclude, firing Golden ends up costing UM $35 million. (Cont)

RT @sportsJC16: That's a huge whack for a private school. You can do it cheaper but that doesn't really get you anywhere. Therein lies the problem.

RT @sportsJC16: A coaches buyout is if he takes another job. UM may have language in Golden's deal post-extension that insulates them. I'm not sure on that.

How does it work if he quits? Fire his buddy because he will not do it and turn the pressure up on him. He can be the HC with know say so! If i was the AD i would bring in somebody like Butch who I dont think would ask for Much make him the interm HC