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Manny Diaz Buyout

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If we gave a 40 year old, son of the mayor, first time head coach THAT kind of contract....

Well then these BOT are even worse business people than we thought. Manny would have taken this job for free, there is no way he had that kind of negotiating leverage

That would be idiotic. No chance his buyout is that high. He may not even have one at all.
 
Mackmiller974 said:
If a school fires a HC it's usually 80-85% of his remaining contract to buy him out. Diaz first year made 3.1M and his deal increases each year. So let's be safe and say he would make 14M over the next 4 years. 80% of that would be 11.2M.
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Are you guys ready for the really fun part? We will likely have to pay a 21% excise tax if his severance payout is more than three times his average salary, to the extent the present value of the payout exceeds his base comp. So if he makes $3.1 this year and we fire him with $11.2M in a severance payment, we will have to pay an additional $1.7M in tax, bringing the total cost of his firing up to $12.9m. So there is very much additional financial incentive for them to wait until the buyout number becomes less than 3x Manny's annual salary.

Plus, whoever we hire, we will have to pay an annual excise tax of 21% to the extent that coach's income exceeds $1m. So if we hire Cristobal for $4m a year, we will have to pay an excise tax of $630k per year.

But wait... there's more... this law likely does not apply to state schools with dual 501c3/115 government status.

To say this is a mess is an understatement.
 
Mackmiller974 said:
Buyout are pretty typical around all of college football 80% of the remaining money is pretty standard
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Read my follow up post on tax reform and the additional tax on parachute payments. It effectively becomes 100% if the negotiated amount is 80%.
 
g8rh8rMD said:
Forget about firing Manny and hiring another coach. Until the athletic department is overhauled, that would be a pointless, counterproductive endeavor.

Frankly, Manny should return next season. We need to clean house in the athletic department right now. Let the new AD get the foundation in place and surround himself with the right people over the next year or two, evaluate the coaches and programs as time goes on, and make the changes he thinks are necessary as he or she deems fit.

This goes way beyond "the right HC hire".
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This.

The BOT should understand by now that Flake has been burning through their money. Hire someone who knows what they’ve doing, then evaluate Diaz later.
 
mdpcane said:
Campbell is worth nowhere near 8 million per year. Texas A&M is already near seriously regretting the 7.5 million per year they are on the hook for with Jimbo
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The problem is the salaries are getting more and more outrageous and we are falling further and further behind. I just saw where Dabo is now the highest paid at like 9.6!
 
RightSaidFred said:
If we gave a 40 year old, son of the mayor, first time head coach THAT kind of contract....

Well then these BOT are even worse business people than we thought. Manny would have taken this job for free, there is no way he had that kind of negotiating leverage

That would be idiotic. No chance his buyout is that high. He may not even have one at all.
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Yes we did it's a standard contract. Taggarts buyout was around 22M after his first season. Diaz Buyout is likely somewhere around 11-13M. His Buyout is likely 80% like the rest of college football HCs. He's owed around 14M for the next 4 years
 
wspcane said:
Are you guys ready for the really fun part? We will likely have to pay a 21% excise tax if his severance payout is more than three times his average salary, to the extent the present value of the payout exceeds his base comp. So if he makes $3.1 this year and we fire him with $11.2M in a severance payment, we will have to pay an additional $1.7M in tax, bringing the total cost of his firing up to $12.9m. So there is very much additional financial incentive for them to wait until the buyout number becomes less than 3x Manny's annual salary.

Plus, whoever we hire, we will have to pay an annual excise tax of 21% to the extent that coach's income exceeds $1m. So if we hire Cristobal for $4m a year, we will have to pay an excise tax of $630k per year.

But wait... there's more... this law likely does not apply to state schools with dual 501c3/115 government status.

To say this is a mess is an understatement.
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We would also have to pay Oregon 10M to buy out Cristobal on top of that
 
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Mackmiller974 said:
You would need to Buyout 4 years of his contract. He will be making around 3.5-4.5 each season considering his APY goes up each season. Most Buyout are 80-85% of the remaining contract. So I would say 12M is a safebet to fire a HC after his first season
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And for costing the school 12M, Blake and his girl should be shown the door.
 
Mackmiller974 said:
You would need to Buyout 4 years of his contract. He will be making around 3.5-4.5 each season considering his APY goes up each season. Most Buyout are 80-85% of the remaining contract. So I would say 12M is a safebet to fire a HC after his first season
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Throw in the Blake James idiot factor....and it's probably $100 mil
 
mdpcane said:
Campbell is worth nowhere near 8 million per year. Texas A&M is already near seriously regretting the 7.5 million per year they are on the hook for with Jimbo
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Unlikely..Texas A&M has deeeeeeeeeeeeeeeeeeeep booster pockets. Billionaire oil money. That 75 mil is a **** in the park for them. They’re hungry to be relevant in CFB..
 
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Manny should resign......just like Richt did

He should do so because he knows he's incompetent as an HC.......

Miami should pursue all avenues available to them for firing him without having to pay the full buyout. This should NOT be a public event or exercise because both parties future can be affected by this process.

The thought of that fraud holding us up for his entire buyout whatever it is ....stinks to high heaven........But I also realize that after being exposed as a HC fraud he is unlikely to ever get another offer.....he probably will as a DC.

But I've learned to take life as it is.....there's very few, if any, classy Mark Richts left out there....so I don't expect Manny to do what Mark did. I also don't expect us to pay the entire buyout.
 
ZuCrew said:
Unlikely..Texas A&M has deeeeeeeeeeeeeeeeeeeep booster pockets. Billionaire oil money. That 75 mil is a **** in the park for them. They’re hungry to be relevant in CFB..
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"Texas oil barons" don't like to **** away money in any amount. thats why they most likely have more than you. This might surprise you, but they like to make GOOD investments and so far Jimbo is not looking like one.
 
mdpcane said:
"Texas oil barons" don't like to **** away money in any amount. thats why they most likely have more than you. This might surprise you, but they like to make GOOD investments and so far Jimbo is not looking like one.
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If I was even a hundred thousandaire, you think I’d be posting in this bish?
 
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