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)
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)