Buyout question

[UC990411]

if Ollie gets another job somewhere making $2m, do we pay the full buyout amount or do we pay the difference? If we pay the full amount, wouldn’t every coach want to get fired?

 

[uchusky32]

No, they wouldn't.

 

[JMick]

a lawyer would need to read the offset language (or lack thereof)

 

[UC990411]

@businesslawyer

 

[the Q]

a lawyer would need to read the offset language (or lack thereof)

Anyone who agrees to offset language is a moron. Plain and simple.

What you’d get from another school has literally zero to do with what you are currently owed through a current contract.

 

[JMick]

Anyone who agrees to offset language is a moron. Plain and simple.

What you’d get from another school has literally zero to do with what you are currently owed through a current contract.

That's not true. Offset language is fairly common.

 

[djct1999]

if Ollie gets another job somewhere making $2m, do we pay the full buyout amount or do we pay the difference? If we pay the full amount, wouldn’t every coach want to get fired?

If we are willing to pay 10mil to get rid of him, what college program in your mind would pay 2mil a year to hire him?

 

[Ts5034]

What does the buyout drop to after next season?

 

[TRest]

What does the buyout drop to after next season?

7 million, after we pay him 3 million for another year of goodness.

 

[the Q]

That's not true. Offset language is fairly common.

That just means there's a lot of morons.

A contract between A and C has literally nothing to do with the current agreement between A and B.

 

[Scrutiner]

That's not true. Offset language is fairly common.

Agreed. Offsets are in contracts so the coach isn't disadvantaged, while also not setting him up for a big reward for failure.

 

[UC990411]

If we are willing to pay 10mil to get rid of him, what college program in your mind would pay 2mil a year to hire him?

It was a hypothetical question dude. Make it $200k, is that better?

 

[Excalibur]

I don’t recall seeing any offset provision in the contract.

 

[the Q]

I don’t recall seeing any offset provision in the contract.

I’m wondering if it would matter if you did a buyout anyway. He’d already be taking less money. And then the contract is toast.

 

[USNA90]

What does the buyout drop to after next season?

I believe I read that he would get $600,000 if he were fired after May 1st of 2019. Anything prior to that and he would get the remainder of the money left on his contract. If that is in fact the case, and there is a $9.4 million difference (plus whatever the new coach would get paid) between firing him now and firing him in 14 months, I can very easily see him coaching at UConn for another year regardless of how far the program has fallen. If, as previously suggested, he is always owed the remainder of his contract regardless of when he is fired, the difference between firing him now and firing him next year would only be $3 million, and firing him this year would be a much more likely scenario.

 

[Paesano]

I believe I read that he would get $600,000 if he were fired after May 1st of 2019. Anything prior to that and he would get the remainder of the money left on his contract.

If that is true, the solution is obvious. Give him the 3.6mill and hire a new coach. The marginal cost is the new coach's salary plus 600k. But, over three years, the university probably ends up near break even if the new coach makes, say, 2 mill. 2x3+3.6=9.6. 3x3=9. Those numbers may not be exact but, close enough.

 

[Excalibur]

I believe I read that he would get $600,000 if he were fired after May 1st of 2019. Anything prior to that and he would get the remainder of the money left on his contract. If that is in fact the case, and there is a $9.4 million difference (plus whatever the new coach would get paid) between firing him now and firing him in 14 months, I can very easily see him coaching at UConn for another year regardless of how far the program has fallen. If, as previously suggested, he is always owed the remainder of his contract regardless of when he is fired, the difference between firing him now and firing him next year would only be $3 million, and firing him this year would be a much more likely scenario.

That is not correct. He is owed the remainder of compensation under the contract at the point of termination.

 

[USNA90]

That is not correct. He is owed the remainder of compensation under the contract at the point of termination.

The contract can be found here:

Auriemma, Ollie sign extensions with UConn. Read them in their entirety here

Section 3.3 of Ollie's contract deals with termination. It looks to me like the full amount vests if he is terminated prior to May 1, 2019. It isn't really clear what happens after that date.

 

[CL82]

That just means there's a lot of morons.

A contract between A and C has literally nothing to do with the current agreement between A and B.

Unless the contract says otherwise. As others have said, I don't remember an offset provision in KO's contract.

 

[the Q]

Unless the contract says otherwise. As others have said, I don't remember an offset provision in KO's contract.

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.

 

[Excalibur]

The contract can be found here:

Auriemma, Ollie sign extensions with UConn. Read them in their entirety here

Section 3.3 of Ollie's contract deals with termination. It looks to me like the full amount vests if he is terminated prior to May 1, 2019. It isn't really clear what happens after that date.

Check Section 10.2.

 

[the Q]

Check Section 10.2. View attachment 29233

I'm pretty interested in the language of 10.1(d)

 

[Guapo]

I have a buyout question as well;

Is it a lump sum of 10 million or would it be paid in installments?

I keep hearing people say "well, we don't have 10 million laying around"

But do we actually need 10 million in cash on hand?

 

[WestHartHusk]

I'm pretty interested in the language of 10.1(d)

The university should be able to drive a truck through 10.1(d). If there is a settlement, it is because of that provision.

 

[the Q]

The university should be able to drive a truck through 10.1(d). If there is a settlement, it is because of that provision.

That’s what I mean.