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Manny's Compensation was $9.5 million in the year ending 5/31/2020 (had to come back for this one)

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Canedude08 said:
The buyout was given to him as compensation, which then went to Temple. This is SOP, buyouts are credited to the actual coach, schools then give the coach the money, who then are responsible for cutting the check.
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That sounds odd to me. Passing the income through a natural person causes nearly half of it to go to government. (PA is a high tax state and Phily is a high tax city.) That would be crazy. If UM paid Manny 4 mm, he sends 1.75 mm give or take to federal, state and local governments. So if he paid the rest to Temple, they get 2.25 mm. Don't think Manny would get a deduction for that, either. Maybe an accountant would contend otherwise but it's a settlement, not a business expense (and he's not like an actor who contracts through an entity). Lot more sensible for UM (tax free) to pay Temple (tax free) the money.
 
Ethnicsands said:
That sounds odd to me. Passing the income through a natural person causes nearly half of it to go to government. (PA is a high tax state and Phily is a high tax city.) That would be crazy. If UM paid Manny 4 mm, he sends 1.75 mm give or take to federal, state and local governments. So if he paid the rest to Temple, they get 2.25 mm. Don't think Manny would get a deduction for that, either. Maybe an accountant would contend otherwise but it's a settlement, not a business expense (and he's not like an actor who contracts through an entity). Lot more sensible for UM (tax free) to pay Temple (tax free) the money.
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The issue is that the contract is between Manny and Temple, and in a fair amount of cases, the buyout is supposed to be paid by the participant of the contract. Never mind the fact that there are other tax shelters that could have eliminated most of the tax burden for Manny. That's the only way this payment makes sense, because there's no way in **** Miami would pay Manny Diaz 9 million dollars just because. Why would they?
 
Canedude08 said:
The issue is that the contract is between Manny and Temple, and in a fair amount of cases, the buyout is supposed to be paid by the participant of the contract. Never mind the fact that there are other tax shelters that could have eliminated most of the tax burden for Manny. That's the only way this payment makes sense, because there's no way in **** Miami would pay Manny Diaz 9 million dollars just because. Why would they?
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I don't understand your response. Miami paid one way or the other. Either via Manny or directly to Temple. I don't know what other tax shelters would help here.

There is a logical reason for buyouts to be paid by the new school, because they can be structured as settlement agreements. Temple would have a tortious interference with contract claim if Miami tried to get Manny to bolt. Easy enough to document the whole thing as a settlement, I'd expect.

Anyhow, Manny was hired by UM in Jan. '19. I'd assume the buy-out was paid before May '19 so not sure why it would even flow into a trailing twelve month statement as of May '20.

I don't know what the facts are around that schedule.
 
PBJFanatic said:
The Temple buy-out was likely amortized over the life of Manny’s contract and they could have back loaded the cost.

We don’t know. But I’m sure he’s not getting back that amount.
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I don't understand what you wrote. If the 4 mm was to be 'amortized' over the life of the contract, it would be about 1 mm per year (think it was a 4 year deal).
In addition, the table heading says W-2/1099. Don't think that 'amortization' would show up in a tax statement to Manny, as tax accounting in this context is cash based. You amortize an intangible asset. The University might do that to Manny's contract for accrual purposes. But don't seem likely that Manny would agree to take phantom income on this topic.

Either they deemed the 4 mm paid to Manny or they didn't. If they did, not sure why it would be in the 5/20 LTM given he was hired in Jan. '19.
 
Rellyrell said:
I’m FULLY aware of how buyouts work, and I’m not getting what u’re even trying to argue. The buyout MONEY came from The University of Miami. Manny Alberto Diaz Jr did not pay that buyout from his own pocket, MEANING, he dipped into his years of saving Xmas $ to pay Temple. The University paid him, in which he paid Temple. So I’m not sure if ur trying to spin this, so I don’t want to be accusatory, but the point was, the University paid for the buyout.
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Miami is recouping that buyout via the low $3.1M salary. Jeff Brohm at Purdue makes $6.5M and Manny is 8th or 9th in the ACC (you get what you pay for).

His salary and buyout isn't going to prevent Miami from firing his *** end of season if things go into the ******* but Teflon Blake James is the real problem.
 
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TheOriginalCane said:
It's different when there is a lateral move (HC at Auburn to HC at UCF) vs. an inferior job title (HC at USC to OC at Alabama).
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Found online. So GM gets a huge buyout, plus what he’s being paid at UCF. Such a deal.

Auburn fired Malzahn in December, paying a $21.5 million contract buyout to the coach, after the Tigers went 6-4 in 2020. The buyout had no mitigation clause and is not decreased by Malzahn taking another job.
 
ssvir said:
Miami is recouping that buyout via the low $3.1M salary. Jeff Brohm at Purdue makes $6.5M and Manny is 8th or 9th in the ACC (you get what you pay for).

His salary and buyout isn't going to prevent Miami from firing his *** end of season if things go into the ******* but Teflon Blake James is the real problem.
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I agree, but it’s the principle of the matter, which u highlighted…the principle problem is Teflon Blake James.
 
Shaudluc said:
A turn over chain and sideline celebrations got Manny the HC job. It was CULTURE it was SWAG. Now look what CULTURE and SWAG got us.
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Culture and swagger got Randy Shannon hired too. Same resume same results.
 
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I completely forgot another possibility, Miami paid the buyout themselves(as a settlement), but because said obligation was Manny's to begin with, it is considered part of his compensation.
 
Ethnicsands said:
That sounds odd to me. Passing the income through a natural person causes nearly half of it to go to government. (PA is a high tax state and Phily is a high tax city.) That would be crazy. If UM paid Manny 4 mm, he sends 1.75 mm give or take to federal, state and local governments. So if he paid the rest to Temple, they get 2.25 mm. Don't think Manny would get a deduction for that, either. Maybe an accountant would contend otherwise but it's a settlement, not a business expense (and he's not like an actor who contracts through an entity). Lot more sensible for UM (tax free) to pay Temple (tax free) the money.
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OK, revised numbers.

Earlier, I said $6.667 million based on an assumed 40% blended fed-state tax rate. But I thought about it, and Manny would be paid his payroll in Florida, which has no state income tax. What Manny does with the money is up to him.

So at 37% fed tax rate, Manny would have been paid $6.35 million so that he could pay the $4 million buyout to Temple.

Thus, Beta Blake paid $6.35 million to get Manny back from Temple after 2 weeks. That's a steep price to pay, when coupled with "no national search" and "picked a new coach in a matter of hours".
 
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