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Calipari Buyout Details

FitchandMurray29

Sophomore
Dec 11, 2021
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There has been so much discussion about Calipari’s buyout due to the current state of affairs so I(someone who is not a lawyer or knows anything about contracts) decided to pull the actual clause from the contract to see what it says.

Many people know that the contract says that it’s 75% of his future compensation thus where we get the big numbers. I could be calculating it wrong but adding his 400k salary plus the crazy 8+ mill media portion he has 53.4 million after this year on his contract. 75% of that is almost exactly 40 million dollars. But did you know that the contract actually states that is to be paid on a monthly basis? So what does that mean? To me it means we don’t actually have to come up with a 40 mill payment, it means we have to pay him essentially 6.675 million a year(556k a month) for 6 years.


The contract also puts the expectation of Calipari to seek new employment and for the buyout here to be reduced by the amount of that salary(perhaps like the Texas job or somewhere else potentially) .

Knowing the real details involved here with the buyout changes my opinions somewhat:

-I still do not expect us to do it
-Not having to immediately come up with 40 mill does make it more conceivable
-The language makes it very likely for a renegotiated buyout(probably lower the amount, make it a lump sum instead of monthly payments for 6 years, and make sure any future employment didn’t reduce it)

 
There has been so much discussion about Calipari’s buyout due to the current state of affairs so I(someone who is not a lawyer or knows anything about contracts) decided to pull the actual clause from the contract to see what it says.

Many people know that the contract says that it’s 75% of his future compensation thus where we get the big numbers. I could be calculating it wrong but adding his 400k salary plus the crazy 8+ mill media portion he has 53.4 million after this year on his contract. 75% of that is almost exactly 40 million dollars. But did you know that the contract actually states that is to be paid on a monthly basis? So what does that mean? To me it means we don’t actually have to come up with a 40 mill payment, it means we have to pay him essentially 6.675 million a year(556k a month) for 6 years.


The contract also puts the expectation of Calipari to seek new employment and for the buyout here to be reduced by the amount of that salary(perhaps like the Texas job or somewhere else potentially) .

Knowing the real details involved here with the buyout changes my opinions somewhat:

-I still do not expect us to do it
-Not having to immediately come up with 40 mill does make it more conceivable
-The language makes it very likely for a renegotiated buyout(probably lower the amount, make it a lump sum instead of monthly payments for 6 years, and make sure any future employment didn’t reduce it)

Good research but IMO Cal ain’t going anywhere unless HE decides to leave!
 
All good in the hood! I say let’s just do it!

Seriously though, all of the Cal fans still clamoring about their chosen one not going anywhere due to the “buyout” clause, are about to get a rude awakening when Cal settles for less than half, and finally hits the road.

Any true, unbiased fan of the program knows that’s exactly what’s going to happen, and probably after this season, if things don’t change drastically.
 
There has been so much discussion about Calipari’s buyout due to the current state of affairs so I(someone who is not a lawyer or knows anything about contracts) decided to pull the actual clause from the contract to see what it says.

Many people know that the contract says that it’s 75% of his future compensation thus where we get the big numbers. I could be calculating it wrong but adding his 400k salary plus the crazy 8+ mill media portion he has 53.4 million after this year on his contract. 75% of that is almost exactly 40 million dollars. But did you know that the contract actually states that is to be paid on a monthly basis? So what does that mean? To me it means we don’t actually have to come up with a 40 mill payment, it means we have to pay him essentially 6.675 million a year(556k a month) for 6 years.


The contract also puts the expectation of Calipari to seek new employment and for the buyout here to be reduced by the amount of that salary(perhaps like the Texas job or somewhere else potentially) .

Knowing the real details involved here with the buyout changes my opinions somewhat:

-I still do not expect us to do it
-Not having to immediately come up with 40 mill does make it more conceivable
-The language makes it very likely for a renegotiated buyout(probably lower the amount, make it a lump sum instead of monthly payments for 6 years, and make sure any future employment didn’t reduce it)

So we are going to pay him almost 7 million a year not to coach us. Then we are supposed to go find another quality coach who is going to expect similar salary. That would put us around 14 million a year just in HC salaries for basketball.
 
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So we are going to pay him almost 7 million a year not to coach us. Then we are supposed to go find another quality coach who is going to expect similar salary. That would put us around 14 million a year just in HC salaries for basketball.
While not realistic, that 7 mill we would pay him presumably would get reduced by another salary for him elsewhere. This is not at all likely IMO but I was just putting the facts out there. In terms of likelihood it is still definitely:
He coaches here next year, a renegotiated buyout, or then much less likely this buyout.
 
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No one is going to pay him what we pay him. However he will leave after next year, and announce it sometime during the tourney next year. He won't wish to tarnish his legacy @ The Univ of Ky.
 
Reality is that he is here for another year and then gone unless a miracle happens; like Texas wanting him.

Hey Texas he does recruit well from there and would be a great hire for ya. If needed we could chip in some money for you. :Wink ;wink
 
Everyone (alumni, students, Mitch B, Mitch M, everyone in Lexington) needs to commit to hazing him at every turn. Let him know that he f’ing sucks, and his money is no good at your business.

If you see him at Jersey Mikes, go tell him he f’ing sucks and needs to turn in his whistle.
 
No one is going to pay him what we pay him. However he will leave after next year, and announce it sometime during the tourney next year. He won't wish to tarnish his legacy @ The Univ of Ky.
I sure hope you are right.
 
While not realistic, that 7 mill we would pay him presumably would get reduced by another salary for him elsewhere. This is not at all likely IMO but I was just putting the facts out there. In terms of likelihood it is still definitely:
He coaches here next year, a renegotiated buyout, or then much less likely this buyout.
If Cal really wanted to manipulate the situation, if fired, he could go coach somewhere else and sign a contract for a $1 million salary for five years (while still collecting $6 million/year from UK). This may be a great way, from his perspective, to coach a school that couldn’t otherwise afford him.
 
Do you think if Cal didn’t have this insane contract he’d be fired by now? I’m not sure.
I don't think so either, but it doesn't mean it isn't warranted. So many excuses and zero answers adds up to a bad environment.
There is no coming back from this; I don't see it.

Can't wait to go to Athens and see if we can compete with Georgia.
 
We can parse the numbers to the Cals come home (see what I did there?) , but one thing is missing in these calculations. Does barney even see a problem with the state of the program? Has he even addressed this at all? His silence speaks volumes.
 
There has been so much discussion about Calipari’s buyout due to the current state of affairs so I(someone who is not a lawyer or knows anything about contracts) decided to pull the actual clause from the contract to see what it says.

Many people know that the contract says that it’s 75% of his future compensation thus where we get the big numbers. I could be calculating it wrong but adding his 400k salary plus the crazy 8+ mill media portion he has 53.4 million after this year on his contract. 75% of that is almost exactly 40 million dollars. But did you know that the contract actually states that is to be paid on a monthly basis? So what does that mean? To me it means we don’t actually have to come up with a 40 mill payment, it means we have to pay him essentially 6.675 million a year(556k a month) for 6 years.


The contract also puts the expectation of Calipari to seek new employment and for the buyout here to be reduced by the amount of that salary(perhaps like the Texas job or somewhere else potentially) .

Knowing the real details involved here with the buyout changes my opinions somewhat:

-I still do not expect us to do it
-Not having to immediately come up with 40 mill does make it more conceivable
-The language makes it very likely for a renegotiated buyout(probably lower the amount, make it a lump sum instead of monthly payments for 6 years, and make sure any future employment didn’t reduce it)

If that is the actual contract linked, then there is a major typo that could be significant. I stress the word could.

The contract talks about termination for "cause", and states that the Coach will not be compensated beyond the notice. However, it says the for "cause" is described in section 7(d), which does not exists in the contract. It should have been 9(d), but that isn't what it says.
 
Everyone (alumni, students, Mitch B, Mitch M, everyone in Lexington) needs to commit to hazing him at every turn. Let him know that he f’ing sucks, and his money is no good at your business.

If you see him at Jersey Mikes, go tell him he f’ing sucks and needs to turn in his whistle.
And people wonder why UK fans have the reputations that they do. It's because we've earned it.
 
Mitch should be fired the minute Cal leaves.
X10000

Mitch has to go for this first before Cal is pushed out. Nutty contract he gives out.

- Cal lifetime
- I like Stoops but this year's raise to 8.6M in such a disappointing year is terrible
- Gillespie
- Kyra Elzy is dumb decision to extend her
- Baseball coach is terrible

He's made some really bad money deals.
 
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Paying $7 million per year to Calipari plus another $6.5 million to someone like Scott Drew as his replacement (minus the lifetime contract) is very doable for a program that can afford to pay Stoops $8+ mil a year.
Don't get me wrong, I like Stoops but, he ain't worth $8+ million per year. Especially with no buyout from outside parties in his contract.
 
There has been so much discussion about Calipari’s buyout due to the current state of affairs so I(someone who is not a lawyer or knows anything about contracts) decided to pull the actual clause from the contract to see what it says.

Many people know that the contract says that it’s 75% of his future compensation thus where we get the big numbers. I could be calculating it wrong but adding his 400k salary plus the crazy 8+ mill media portion he has 53.4 million after this year on his contract. 75% of that is almost exactly 40 million dollars. But did you know that the contract actually states that is to be paid on a monthly basis? So what does that mean? To me it means we don’t actually have to come up with a 40 mill payment, it means we have to pay him essentially 6.675 million a year(556k a month) for 6 years.


The contract also puts the expectation of Calipari to seek new employment and for the buyout here to be reduced by the amount of that salary(perhaps like the Texas job or somewhere else potentially) .

Knowing the real details involved here with the buyout changes my opinions somewhat:

-I still do not expect us to do it
-Not having to immediately come up with 40 mill does make it more conceivable
-The language makes it very likely for a renegotiated buyout(probably lower the amount, make it a lump sum instead of monthly payments for 6 years, and make sure any future employment didn’t reduce it)

can someone with a finance background compute the net present value of those future payments? That number would be for a lump sump buyout and would be the starting point for negotiations.
 
Highest paid coach is self at $10 mill.
Next is Calipari at close to $9 mill.
Top 20 coaches are mostly around $3 mill.
Flagship state schools like Illinois, Michigan, Nebraska, LSU pay their coaches $3.5 mill.
Texas paid Chris Beard (one FF to his credit) was $5.2 milllion.
Tennessee pays Rick Barnes $5.3 million.

Calipari's ego probably won't let him take anything less than $9 million. Texas getting a coach of Calipari's stature should be paying $7 million compared to Beard's $5 million.

Texas pays $7 million, Kentucky pays the last $2 million per year for the remaining years of the Kentucky contract.

Take present value of $2 million per year and compute/negotiate a lump sum buyout payment.

Everyone's happy.
 
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Everyone (alumni, students, Mitch B, Mitch M, everyone in Lexington) needs to commit to hazing him at every turn. Let him know that he f’ing sucks, and his money is no good at your business.

If you see him at Jersey Mikes, go tell him he f’ing sucks and needs to turn in his whistle.
Still good with this plan. Let’s get to work
 
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