Showing posts with label Sports Law Blog. Show all posts
Showing posts with label Sports Law Blog. Show all posts

Tuesday, November 27, 2012

An Expensive...Firing

The University of Auburn fired a football coach the other day.   And for that...the price tag is going to be around $11 million.   Give or take a few thousand.

Which is why we have absolutely no sympathy for the big time college football coaches.

From Sports Law Blog:


Monday, November 26, 2012
 
The Contractual Implications of Auburn Firing Gene Chizik

As many had predicted over the last few weeks, Auburn University announced on Sunday that it was firing head coach Gene Chizik just two years after he led the Tigers to an undefeated season and BCS national championship.  Because the school decided 17 months ago to give Chizik a contract extension through 2015, Auburn is now on the hook for an expensive buyout of its football coaching staff.  Specifically, Chizik is owed a total of $7.5 million -- to be paid in monthly installments of $208,334 for each of the next 36 months -- pursuant to the early termination clause in his contract.  Had he not been fired, Chizik would have received an additional $3 million over the life of his contract.  However, because many of his assistant coaches were also given guaranteed contracts (in some cases running through June 2014), the total cost of the buyout for Auburn will actually exceed $11 million.

Anticipating Chizik's likely termination, the Columbus (GA) Ledger-Enquirer explored Auburn's contractual commitments to its football coaching staff, as well as the general trends in football coaches' buyout provisions nationally, in a story last week.  Here is an excerpt:
A June 2011 release by Win AD stated of the coaches who were dismissed in 2010 or 2011 with buyout clauses written into their contracts, 70 percent of those buyouts were based on their remaining total or base salary.

The other 30 percent were guaranteed a partial take on their full salary -- either a certain amount of money per month or year remaining on the contract, a percentage of the remaining base salary, or one year's total or base salary.
You can check out the full story (including quotes from myself and Rick Karcher) by clicking here.
gene chizik auburn
AP
Two years after winning a national championship, Gene Chizik has been fired as head coach of Auburn (via ESPN.com). Auburn University doesn't get off easy, it is going to have dish out millions of dollars to make their football coach go away. According to Nathaniel Grow of Sports Law Blog, Auburn owes Chizik $7.5 million based on the buyout clause in the contract extension he signed two years ago. On top of that, assuming the entire coaching staff is let go, the school will have to pay the assistant coaches more than $3.5 million in buyouts, for a total cost that will "exceed $11 million."
Of course, the folks at Auburn have become experts at giving bad coaches a lot of money. In 2008, Auburn paid Tommy Tuberville $5.1 million when he "resigned."
While Chizik did lead Auburn to a national title in 2010, his record was just 19-19 in games that Cam Newton was not his quarterback. In hindsight, maybe they should have given the 2010 Coach of the Year award to Newton.


Read more: http://www.businessinsider.com/auburn-fires-head-coach-a-move-that-will-cost-the-university-11-million-2012-11#ixzz2DSs9Ji00

Auburn Fires Its Head Football Coach, A Move That Will Cost The University $11 Million

Cork Gaines | Nov. 27, 2012, 3:50 PM | 708 | 2
gene chizik auburn
AP
Two years after winning a national championship, Gene Chizik has been fired as head coach of Auburn (via ESPN.com). Auburn University doesn't get off easy, it is going to have dish out millions of dollars to make their football coach go away. According to Nathaniel Grow of Sports Law Blog, Auburn owes Chizik $7.5 million based on the buyout clause in the contract extension he signed two years ago. On top of that, assuming the entire coaching staff is let go, the school will have to pay the assistant coaches more than $3.5 million in buyouts, for a total cost that will "exceed $11 million."
Of course, the folks at Auburn have become experts at giving bad coaches a lot of money. In 2008, Auburn paid Tommy Tuberville $5.1 million when he "resigned."
While Chizik did lead Auburn to a national title in 2010, his record was just 19-19 in games that Cam Newton was not his quarterback. In hindsight, maybe they should have given the 2010 Coach of the Year award to Newton.


Read more: http://www.businessinsider.com/auburn-fires-head-coach-a-move-that-will-cost-the-university-11-million-2012-11#ixzz2DSrtyD7N

gene chizik auburn
AP
Two years after winning a national championship, Gene Chizik has been fired as head coach of Auburn (via ESPN.com). Auburn University doesn't get off easy, it is going to have dish out millions of dollars to make their football coach go away. According to Nathaniel Grow of Sports Law Blog, Auburn owes Chizik $7.5 million based on the buyout clause in the contract extension he signed two years ago. On top of that, assuming the entire coaching staff is let go, the school will have to pay the assistant coaches more than $3.5 million in buyouts, for a total cost that will "exceed $11 million."
Of course, the folks at Auburn have become experts at giving bad coaches a lot of money. In 2008, Auburn paid Tommy Tuberville $5.1 million when he "resigned."
While Chizik did lead Auburn to a national title in 2010, his record was just 19-19 in games that Cam Newton was not his quarterback. In hindsight, maybe they should have given the 2010 Coach of the Year award to Newton.


Read more: http://www.businessinsider.com/auburn-fires-head-coach-a-move-that-will-cost-the-university-11-million-2012-11#ixzz2DSs9Ji00

Auburn Fires Its Head Football Coach, A Move That Will Cost The University $11 Million

Cork Gaines | Nov. 27, 2012, 3:50 PM | 708 | 2
gene chizik auburn
AP
Two years after winning a national championship, Gene Chizik has been fired as head coach of Auburn (via ESPN.com). Auburn University doesn't get off easy, it is going to have dish out millions of dollars to make their football coach go away. According to Nathaniel Grow of Sports Law Blog, Auburn owes Chizik $7.5 million based on the buyout clause in the contract extension he signed two years ago. On top of that, assuming the entire coaching staff is let go, the school will have to pay the assistant coaches more than $3.5 million in buyouts, for a total cost that will "exceed $11 million."
Of course, the folks at Auburn have become experts at giving bad coaches a lot of money. In 2008, Auburn paid Tommy Tuberville $5.1 million when he "resigned."
While Chizik did lead Auburn to a national title in 2010, his record was just 19-19 in games that Cam Newton was not his quarterback. In hindsight, maybe they should have given the 2010 Coach of the Year award to Newton.


Read more: http://www.businessinsider.com/auburn-fires-head-coach-a-move-that-will-cost-the-university-11-million-2012-11#ixzz2DSrtyD7N
 

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