The buyout in Kevin Ollie's contract

[tcf15]

David Borges ‏@DaveBorges 4m
Per sources, Ollie's contract has a separate buyout for college and NBA jobs. He'd owe #UConn more if takes college job than an NBA job.

 

[Penfield]

that seems unnecessary

 

[Jimmy Serrano]

Boneyard meltdown in 3, 2 ,1........

 

[Dogdeacon]

David Borges ‏@DaveBorges 4m
Per sources, Ollie's contract has a separate buyout for college and NBA jobs. He'd owe #UConn more if takes college job than an NBA job.

I'm sure KO told his lawyer; 'whatever, make it 200 zillion dollars for a college buyout, I don't care because I'm never coaching at any college not named UConn'.

 

[Huskyforlife]

Dear lord he clearly wants the cuse job..

 

[Chin Diesel]

I don't see him leaving for another college job. If UConn's Administration sh!ts the bed, he's going to the NBA.

And truth be told, it doesn't matter what his NBA buyout # is, any team can afford to pay that if they want Ollie.

Let's enjoy him while we have him.

I'm more concerned about UConn not having a coach in waiting.

 

[Kitaman]

Boneyard meltdown in 3, 2 ,1...

I'll start for the others......."its a clear incentive to jump to the NBA"

 

[Tenspro2002]

David Borges ‏@DaveBorges 4m
Per sources, Ollie's contract has a separate buyout for college and NBA jobs. He'd owe #UConn more if takes college job than an NBA job.

Makes it seem like a matter of "when", not "if", he departs for the NBA. That buyout was a big sticking point, showing it's clearly on Ollie's mind.

 

[CL82]

Nah, it was just prudent negotiation. Not a big deal in the least. IMO Chin was spot on when he pointed out that if a NBA team was interested it would pay the buy out.

 

[tcf15]

Here it is:

BUYOUT: If the Coach accepts a position as a Head Coach of men's basketball at an NCAA Division I institution, the following will be due to the University from the Coach: $5,000,000 in 2014-15; $4,000,000 in 2015-16; $3,000,000 in 2016-17; $2,000,000 in 2017-18 and 2018-19. If the Coach accepts a position as a Head Coach or Assistant Coach in the NBA, the following will be due to the University from the Coach: $5,000,000 in 2014-15; $4,000,000 in 2015-16; $1,000,000 in 2016-17, 2017-18 and 2018-19.

http://www.uconnhuskies.com/sports/m-baskbl/spec-rel/052214aab.html

 

[Huskyforlife]

Here it is:

BUYOUT: If the Coach accepts a position as a Head Coach of men's basketball at an NCAA Division I institution, the following will be due to the University from the Coach: $5,000,000 in 2014-15; $4,000,000 in 2015-16; $3,000,000 in 2016-17; $2,000,000 in 2017-18 and 2018-19. If the Coach accepts a position as a Head Coach or Assistant Coach in the NBA, the following will be due to the University from the Coach: $5,000,000 in 2014-15; $4,000,000 in 2015-16; $1,000,000 in 2016-17, 2017-18 and 2018-19.

http://www.uconnhuskies.com/sports/m-baskbl/spec-rel/052214aab.html

Wouldn't you want the numbers to increase as time goes on? Seems weird after 15-16 there's such a big drop.

 

[CallMeBruce]

He can also terminate with no buyout penalty if Warde or Herbst leaves the school. That's an interesting wrinkle.

 

[elduderino]

Wouldn't you want the numbers to increase as time goes on? Seems weird after 15-16 there's such a big drop.

The buyout reflects the decaying value of the option contract. Value decays to $0 at the completion of the contract term. Pretty typical financial risk hedging strategy.

 

[Husky25]

It really doesn't matter to Ollie what the buy out is, the destination program or pro team typically pay it.

The buyout reflects the decaying value of the option contract. Value decays to $0 at the completion of the contract term. Pretty typical financial risk hedging strategy.

I was just going to say that, but interesting use of the word, "decay" vs. "decrease".

No one in their right mind would accept a progressively increasing buyout clause, while giving the other party a one buyout clause. The reason why they are there in the first place is it is easy to void the contract without breaching fiduciary duties prior to ultimate completion.

Be that as it may, If Ollie's success continues (I define this as getting to the Elite 8 or better), who wants to bet that Warde Manuel doesn't take advantage of a clause to re-open the contract in two years, just like he did this year. I think he will.

 

[DogMania]

Wouldn't you want the numbers to increase as time goes on? Seems weird after 15-16 there's such a big drop.

Expect wild speculation about KO's departure to the NBA starting after the 2015-16 season since the buyout drops to 1 Mil. I hope they renegotiate a new contract by then. I don't think I can take another billions threads on KO leaving to the NBA.

 

[UConnSportsGuy]

He can also terminate with no buyout penalty if Warde or Herbst leaves the school. That's an interesting wrinkle.

That is a horrible precedent to set. I wonder if the State will allow that provision in the contract?

 

[elduderino]

That is a horrible precedent to set. I wonder if the State will allow that provision in the contract?

It's actually very typical in business for in-demand Managing Director and Partner level employees for attraction and retention purposes requiring zero upfront capital outlay. No one would try to apply it to a union group.

 

[dogpause]

He can also terminate with no buyout penalty if Warde or Herbst leaves the school. That's an interesting wrinkle.

WOW, that's a rather likely scenario. So you hire Ward, then hire Ollie.

 

[SubbaBub]

It's a $2M difference in year 3 and a $1M difference in the last two years. IOW, not a big deal.

 

[CAHUSKY]

WOW, that's a rather likely scenario. So you hire Ward, then hire Ollie.

You think KO has more loyalty to Manuel than Uconn?

 

[Kauffmak10]

Expect wild speculation about KO's departure to the NBA starting after the 2015-16 season since the buyout drops to 1 Mil. I hope they renegotiate a new contract by then. I don't think I can take another billions threads on KO leaving to the NBA.

Expect it just about every year when an NBA coaching vacancy opens.. He's obviously valued on that level and his name will get thrown in there just about every year because the media will do it even if there's no real interest. Pay it no attention.. He's where he wants to be!

 

[intlzncster]

I don't see him leaving for another college job. If UConn's Administration sh!ts the bed, he's going to the NBA.

And truth be told, it doesn't matter what his NBA buyout # is, any team can afford to pay that if they want Ollie.

Let's enjoy him while we have him.

I'm more concerned about UConn not having a coach in waiting.

That's the last thing I'd want. The moment UCONN gets a coach in waiting is the moment I start freaking out that Ollie is going to leave soon.

 

[intlzncster]

Buyout's are only meaningful if they are roof shattering. No team, college or NBA, would pay a $200 million buyout. Ever. But smaller numbers are just the cost of doing business.

 

[8893]

It's a $2M difference in year 3 and a $1M difference in the last two years. IOW, not a big deal.

I don't know what IOW means, but I think that's a big deal. If it was a sticking point, I'm glad Warde didn't. At the end of the day, it's not so much the number as what can be discerned from the unequal drop in 2016-17. Interesting.

 

[TRest]

I don't know what IOW means, but I think that's a big deal. If it was a sticking point, I'm glad Warde didn't. At the end of the day, it's not so much the number as what can be discerned from the unequal drop in 2016-17. Interesting.

I'm guessing KO is just showing his preference. It would be a bigger kick in the Sehnor Testiculos if he left here for Kentucky rather than the Lakers. If he's as good as we think he is, he will still be a hot property in a few years. And a lot may change in that time regarding UConn's place in the national landscape. If we are in a permanent G5 prison, after the P5 split off, the NBA will look better and better.