Buyout question

[UC990411]

So to clarify, if he got fired today we owe him $10m. If he got hired somewhere else tomorrow, he would get the $10m PLUS his future salary. Not $10M LESS his future salary. If that is the case wouldn’t he want to get fired? He’d get a raise!!

 

[Travelman6]

It is really insane when you think about it.

 

[CL82]

Yeah, sorry, I'm just getting on my soap box for that one.

I used to be a baseball agent, but I never understood how any agent would agree to such absurd language. Not only does it hurt your client, it costs you money as well.

Depends, right? For example if a proposed buyout was $3M without an offset of $10M with an offset and the going rate for a similar position was $4M you'd take the offset language in a heartbeat. Silly example, I know.

I'm sure you have a better insight into what people are actually getting that the vast majority of people on the board, including me. I think that whomever negotiates UConn's deals isn't doing a great job. Buyout's seem high, the lack of an offset, payouts are all lump sum, etc.. Is that the norm?

 

[the Q]

Depends, right? For example if a proposed buyout was $3M without an offset of $10M with an offset and the going rate for a similar position was $4M you'd take the offset language in a heartbeat. Silly example, I know.

I'm sure you have a better insight into what people are actually getting that the vast majority of people on the board, including me. I think that whomever negotiates UConn's deals isn't doing a great job. Buyout's seem high, the lack of an offset, payouts are all lump sum, etc.. Is that the norm?

Coaching is an entirely different game, and frankly HS and college baseball players (what i did) is totally different too.

I'm not entirely sure. But I would think that the University would still finance the payments, even if it's not with Ollie directly.

Most of these contracts are guaranteed and buyouts and negotiated after the fact, similar to how NBA players negotiate buyouts. I would imagine Stallings contract looks similar to Ollie's.

 

[CL82]

Coaching is an entirely different game, and frankly HS and college baseball players (what i did) is totally different too.

I'm not entirely sure. But I would think that the University would still finance the payments, even if it's not with Ollie directly.

Most of these contracts are guaranteed and buyouts and negotiated after the fact, similar to how NBA players negotiate buyouts. I would imagine Stallings contract looks similar to Ollie's.

That's an interesting thought to compare the two, not that I think Pitt's AD is state of the art.