Facts on how the buyout works

[bthaunert]

I posted this in another thread, but thought I would post it here. There is so much misinformation about how his buyout works. Here are facts about the buyout and what the cost to the university would be if they bought him out.

It’s stated in his contract that it’s paid out over the length of the contract on an annual basis, not one lump sum. Here is how the buyout works out annually:

24/25 - $6.4 million
25/26 - $6.8 million
26/27 - $6.8 million
27/28 - $6.8 million
28/29 - $6.8 million

The 3rd highest paid coach in college basketball is at $6.2 million (Izzo). Let’s say you bring on a coach and pay him $7 million max. That means you owe the following money between Cal’s annual buyout and the new coaches contract:

24/25 - $13.4 million
25/26 - $13.8 million
26/27 - $13.8 million
27/28 - $13.8 million
28/29 - $13.8 million

If you subtract what you’d be paying Cal annually if he remained the coach ($8.5 million in 24/25 and $9.1 million the following 4 years), you would need to come up with this much more money annually than you pay Cal right now in his contract::

24/25 - $4.9 million
25/26 - $4.7 million
26/27 - $4.7 million
27/28 - $4.7 million
28/29 - $4.7 million

In 2022, UK reported athletic department revenue of $159 million and expenses of $153.6 million, meaning they had $5.4 million at the end of the year….

It would not be difficult to get boosters on board for splitting the buyout. They pony up about $2.5 million annually and UK ponies up about $2.5 million ever year.

It is not this impossible thing as some think it is to buy him out and still get a really good coach.

 

[rick64]

Good info.

 

[CatFanInIlliniLand]

So you’re telling me there’s a chance?

 

[bbncal02]

7 million a year to fail. What a world.

Why work hard and be something when you can go an be a failure of a sports coach. We’re all in the wrong line of work.

 

[jrpross]

Is it possible that UK could give him a percentage of that as a lump sum all at once? It seems like if Cal is fed up with the losing and the fan reaction he might be willing to make a deal.

 

[Wildcats1st]

I posted this in another thread, but thought I would post it here. There is so much misinformation about how his buyout works. Here are facts about the buyout and what the cost to the university would be if they bought him out.

It’s stated in his contract that it’s paid out over the length of the contract on an annual basis, not one lump sum. Here is how the buyout works out annually:

24/25 - $6.4 million
25/26 - $6.8 million
26/27 - $6.8 million
27/28 - $6.8 million
28/29 - $6.8 million

The next 2 highest paid coaches in college basketball are at $6.2 million (Izzo) and $6 million (Self). Let’s say you bring on a coach and pay him $7 million max. That means you owe the following money between Cal’s annual buyout and the new coaches contract:

24/25 - $13.4 million
25/26 - $13.8 million
26/27 - $13.8 million
27/28 - $13.8 million
28/29 - $13.8 million

If you subtract what you’d be paying Cal annually if he remained the coach ($8.5 million in 24/25 and $9.1 million the following 4 years), you would need to come up with this much more money annually than you pay Cal right now in his contract::

24/25 - $4.9 million
25/26 - $4.7 million
26/27 - $4.7 million
27/28 - $4.7 million
28/29 - $4.7 million

In 2022, UK reported athletic department revenue of $159 million and expenses of $153.6 million, meaning they had $5.4 million at the end of the year….

It would not be difficult to get boosters on board for splitting the buyout. They pony up about $2.5 million annually and UK ponies up about $2.5 million ever year.

It is not this impossible thing as some think it is to buy him out and still get a really good coach.

Cal isn’t going to be fired. They would negotiate a buyout. Nevertheless, this is a testimony to why Barney should be fired tomorrow. Who the hell makes a contract like this when the coach is declining?

Also I think self now is the highest paid coach.

 

[bthaunert]

Cal isn’t going to be fired. They would negotiate a buyout. Nevertheless, this is a testimony to why Barney should be fired tomorrow. Who the hell makes a contract like this when the coach is declining?

Also I think self now is the highest paid coach.

You are right on Self…..forgot he just got a big contract!

 

[bbncal02]

Cal isn’t going to be fired. They would negotiate a buyout. Nevertheless, this is a testimony to why Barney should be fired tomorrow. Who the hell makes a contract like this when the coach is declining?

Also I think self now is the highest paid coach.

The last act of Mitch’s ineptitude “Pwease go away Cal. Pretty Pwease?”

 

[bthaunert]

Cal isn’t going to be fired. They would negotiate a buyout. Nevertheless, this is a testimony to why Barney should be fired tomorrow. Who the hell makes a contract like this when the coach is declining?

Also I think self now is the highest paid coach.

I disagree that he will never be fired. The numbers I put are if he’s paid out fully. If they negotiate a buyout than that number would be less, which makes it even easier to come up with the additional money necessary.

 

[HagginHall1999]

But what is Barnhardt's contract buyout. If you want to solve the problem, you cut the head off the snake, not the tail.

Do we trust MB to hire Cal's replacement? I don't....not at all.

 

[bthaunert]

But what is Barnhardt's contract buyout. If you want to solve the problem, you cut the head off the snake, not the tail.

Do we trust MB to hire Cal's replacement? I don't....not at all.

Here is the issue. He’s a university presidents dream as an AD. He is not going anywhere and is not even remotely close to the hot seat.

 

[cats2010]

I disagree that he will never be fired. The numbers I put are if he’s paid out fully. If they negotiate a buyout than that number would be less, which makes it even easier to come up with the additional money necessary.

The other part of Cals buyout if I understand correctly is if he were to go get another job elsewhere, the money he is paid comes off the money UK owes him. So if we owe him 6.8 million and gets an annual contract paying him 5 million we only owe him 1.8 million.

 

[Rideordiewildcat]

At the end of the day, cow is a turd that will not flush.

 

[true blue1]

Cal isn’t going to be fired. They would negotiate a buyout. Nevertheless, this is a testimony to why Barney should be fired tomorrow. Who the hell makes a contract like this when the coach is declining?

Also I think self now is the highest paid coach.

Cal really doesn’t have to negotiate a buy out if he doesn’t want to because it’s a guaranteed contract. Which is a total embarrassment on Barnhart’s part for allowing such a contract.

 

[susan2361]

I posted this in another thread, but thought I would post it here. There is so much misinformation about how his buyout works. Here are facts about the buyout and what the cost to the university would be if they bought him out.

It’s stated in his contract that it’s paid out over the length of the contract on an annual basis, not one lump sum. Here is how the buyout works out annually:

24/25 - $6.4 million
25/26 - $6.8 million
26/27 - $6.8 million
27/28 - $6.8 million
28/29 - $6.8 million

The 3rd highest paid coach in college basketball is at $6.2 million (Izzo). Let’s say you bring on a coach and pay him $7 million max. That means you owe the following money between Cal’s annual buyout and the new coaches contract:

24/25 - $13.4 million
25/26 - $13.8 million
26/27 - $13.8 million
27/28 - $13.8 million
28/29 - $13.8 million

If you subtract what you’d be paying Cal annually if he remained the coach ($8.5 million in 24/25 and $9.1 million the following 4 years), you would need to come up with this much more money annually than you pay Cal right now in his contract::

24/25 - $4.9 million
25/26 - $4.7 million
26/27 - $4.7 million
27/28 - $4.7 million
28/29 - $4.7 million

In 2022, UK reported athletic department revenue of $159 million and expenses of $153.6 million, meaning they had $5.4 million at the end of the year….

It would not be difficult to get boosters on board for splitting the buyout. They pony up about $2.5 million annually and UK ponies up about $2.5 million ever year.

It is not this impossible thing as some think it is to buy him out and still get a really good coach.

Thank you for posting this. I re read Cal's contract and was figuring out things and then I saw you posted this. Thanks. Also, if he can be fired for cause, such as gross negligence, etc., we don't have to pay anything.

 

[HagginHall1999]

Here is the issue. He’s a university presidents dream as an AD. He is not going anywhere and is not even remotely close to the hot seat.

That is a major problem

 

[Bluesbrother]

7 million a year to fail. What a world.

Why work hard and be something when you can go an be a failure of a sports coach. We’re all in the wrong line of work.

Well, if you can't coach you would apparently be a good candidate.

 

[Bluesbrother]

But what is Barnhardt's contract buyout. If you want to solve the problem, you cut the head off the snake, not the tail.

Do we trust MB to hire Cal's replacement? I don't....not at all.

... hell NO. Barnhart needs to go as well.

 

[BlueSince92]

For most sane people, choosing to pay $13.8 million for something over paying $9.1 million for nothing is kind of a no-brainer.

 

[OBKYUK]

For most sane people, choosing to pay $13.8 million for something over paying $9.1 million for nothing is kind of a no-brainer.

Agreed, and this scenario is assuming we pay the next coach $7m a year. Get him at $5.5m and it’s a lot closer to what we already have to pay Cal to lose now.

 

[catben]

From reading the post about Cal's comments on the "Ambassador" job, there is NO WAY he is going ANYWHERE until that RIDICULOUS contract ends or UK pays him EVERY PENNY of the buyout.

Now I want to PUKE!!!

Mitch is the one that needs to be FIRED for putting UK Basketball in this position!!!

 

[PharmData]

I posted this in another thread, but thought I would post it here. There is so much misinformation about how his buyout works. Here are facts about the buyout and what the cost to the university would be if they bought him out.

It’s stated in his contract that it’s paid out over the length of the contract on an annual basis, not one lump sum. Here is how the buyout works out annually:

24/25 - $6.4 million
25/26 - $6.8 million
26/27 - $6.8 million
27/28 - $6.8 million
28/29 - $6.8 million

The 3rd highest paid coach in college basketball is at $6.2 million (Izzo). Let’s say you bring on a coach and pay him $7 million max. That means you owe the following money between Cal’s annual buyout and the new coaches contract:

24/25 - $13.4 million
25/26 - $13.8 million
26/27 - $13.8 million
27/28 - $13.8 million
28/29 - $13.8 million

If you subtract what you’d be paying Cal annually if he remained the coach ($8.5 million in 24/25 and $9.1 million the following 4 years), you would need to come up with this much more money annually than you pay Cal right now in his contract::

24/25 - $4.9 million
25/26 - $4.7 million
26/27 - $4.7 million
27/28 - $4.7 million
28/29 - $4.7 million

In 2022, UK reported athletic department revenue of $159 million and expenses of $153.6 million, meaning they had $5.4 million at the end of the year….

It would not be difficult to get boosters on board for splitting the buyout. They pony up about $2.5 million annually and UK ponies up about $2.5 million ever year.

It is not this impossible thing as some think it is to buy him out and still get a really good coach.

Also need to factor in the new coach’s potential buyout as well as any current assistant that has multiple years left on their contract.

 

[BlueSince92]

Agreed, and this scenario is assuming we pay the next coach $7m a year. Get him at $5.5m and it’s a lot closer to what we already have to pay Cal to lose now.

Right? And since Izzo is probably about the only replacement pretty much no one would seriously consider, it has to be at least a little closer to that.

 

[Fox2monk]

Here is the issue. He’s a university presidents dream as an AD. He is not going anywhere and is not even remotely close to the hot seat.

That’s what I’m afraid of.

 

[wildcat_nation28]

Not going anywhere until Cal says he is ready to go

 

[bthaunert]

Also need to factor in the new coach’s potential buyout as well as any current assistant that has multiple years left on their contract.

A new coaches buyout would have to be factored in regardless if we were paying Cal or not and those are all over the board. But yes, those can be upwards of $10 million if paid in full.

As for assistant coaches, I can’t find the specifics, but assistant coach buyouts are usually not very high. As an example, when UK took Orlando and Chin from Illinois, they had to pay Illinois less than 100k for both Chin and Orlando combined.

 

[saxonburgcat]

7 million a year to fail. What a world.

Why work hard and be something when you can go an be a failure of a sports coach. We’re all in the wrong line of work.

Not just sports. CEO's who fail are often given these deals as well. Marissa Mayer failed at Yahoo and got $260m.

 

[TankedCat]

Rupp Arena boo'ing Cal every game would give UK some leverage in the negotiations

its an ugly look but either you commit to a new coach or you don't

No way do I want UK in a position where they are using every spare dollar to pay off a failed coach.

 

[cats2010]

Rupp Arena boo'ing Cal every game would give UK some leverage in the negotiations

its an ugly look but either you commit to a new coach or you don't

No way do I want UK in a position where they are using every spare dollar to pay off a failed coach.

This is really all it takes to get cal out. His ego could not take it. A negotiated buyout becomes easier with someone that wants out rather than with someone being forced out.

 

[TankedCat]

If the team flames out this year, I think Cal is going to want out. No inside knowledge on it, just seems like human nature. He has the house in Nashville to be close to his daughter, he has the beach house, he has to have more money than he can spend and his kids are taken care of.

I think if it ends badly he walks away - knowing he milked it for 4 more years than he ever planned on doing.

Whats crazy about this is Cal said he'd stay 10 years and he knew back then you'd burn out, and since the 10 year mark he's basically turned in a pile of steaming xxxx as a coach.

 

[blue cincy]

At this point I think Cal wants to ruin the program and go down with the ship making 9mil a year.

He will continue to tweet about 7 guys in the all star game, or x billion he has helped guys make, blah, blah, blah. He will be oblivious to the fact that he is paid to win College Basketball games. Heck publicly he has stated he is here to get guys paid in the NBA and if he does that right winning will follow. It is like saying we will continue to raise tax rates on you and make things better but guess what, it only gets better for others.

We are stuck with the idiot.

First step now is to get rid of Mitch or at least put all the pressure on Mitch. The only way to show our disapproval is to not show up to games, not pony up monies for anything basketball related. Turn our back on what we love, become the rest of the SEC and put all our bucks into football for a spell. Maybe (big maybe) something will change. Doubt it as Mitch and Cal are both delusional, but maybe.

 

[CaptainBoogerBuns]

At this point I think Cal wants to ruin the program and go down with the ship making 9mil a year.

He will continue to tweet about 7 guys in the all star game, or x billion he has helped guys make, blah, blah, blah. He will be oblivious to the fact that he is paid to win College Basketball games. Heck publicly he has stated he is here to get guys paid in the NBA and if he does that right winning will follow. It is like saying we will continue to raise tax rates on you and make things better but guess what, it only gets better for others.

We are stuck with the idiot.

First step now is to get rid of Mitch or at least put all the pressure on Mitch. The only way to show our disapproval is to not show up to games, not pony up monies for anything basketball related. Turn our back on what we love, become the rest of the SEC and put all our bucks into football for a spell. Maybe (big maybe) something will change. Doubt it as Mitch and Cal are both delusional, but maybe.

Not sure why you’d have to turn your backs on basketball to fund football. Football is the bell cow money-wise, and needs the focus. The SEC is continuing to be a grind, and we need to pour a lot of focus and $$ into it.

No reason we can’t be successful at basketball. I’m sure a lot of bball coaches will coach here for a while he’ll of a lot less than what Cal is pulling.

 

[JimBR]

If the UK admin wants him gone there would be no negotiation. Cal would want every penny the contract states he's due.

 

[TankedCat]

If the UK admin wants him gone there would be no negotiation. Cal would want every penny the contract states he's due.

yep

you'll have to make it where Cal wants to be gone.

 

[Mike-McD]

@JFCats22 hardest hit.

 

[Mike-McD]

Rupp Arena boo'ing Cal every game would give UK some leverage in the negotiations

its an ugly look but either you commit to a new coach or you don't

No way do I want UK in a position where they are using every spare dollar to pay off a failed coach.

It's an ugly look but that's on Cal. He created this situation, enabled by Mitch.

 

[TankedCat]

It's an ugly look but that's on Cal. He created this situation, enabled by Mitch.

no fan base wants to known for turning on its coach but in Caliparis case, he knows he's not getting it done.

When you start selectively hiding from the fanbase, you know you aren't getting it done.

If you have to hide from the fan base, then its time to go.