Coach Deion Sanders and his Colorado football team are tied for last place in the Big 12 with a 1-5 league record after finishing 15th out of 16 teams in the conference in 2025.
Yet Sanders is the highest paid coach in the league at more than $10 million annually.
Combine those two sets of facts and it creates two sets of problems — an underperforming coach and a contract that is expensive to break if Sanders is fired.
With questions swirling about Sanders’ job security, here is a breakdown on how much it would cost to fire Sanders, if Colorado can afford it and why Colorado did itself a favor by only guaranteeing 75% of his contract if he does get fired.
Colorado has three
games left in the regular season starting Nov. 13 at home against Houston.
What is Deion Sanders' contract buyout amount?
If he’s fired after the season for losing too many games, he would be owed about $26 million, payable in equal monthly installments through Dec. 31, 2029.
His contract obtained by USA TODAY Sports says he would be owed 75% of what would have been due to him if he stayed on as Colorado’s coach. He is due to make $11 million in 2027, $11 million in 2028 and $12 million in 2029. Right now he’s making $833,333 per month or $10 million for the year in 2026, through Dec. 31.
What if Deion Sanders retires instead?
If Sanders retires and doesn’t coach again, neither party would owe each other anything. If he retires and does coach again at the college or pro level, Sanders would owe the university at least $3 million if he takes a job before his Colorado contract ends in 2029.
Can Colorado afford to fire Deion Sanders?
Probably not, but that doesn’t mean the university won’t find a way. Colorado’s athletic department projected a $27 million deficit in fiscal 2026, which ended in June 2026. That was the first full year it was paying Sanders at his new rate of $10 million per year, in addition to paying players for the first time with more than $20 million in revenue-sharing.
Colorado’s athletic department already gets significant support from the university to make ends meet and projected needing an additional $11.9 million in institutional support revenue from the university and $2.2 million in student fees for the same fiscal year.
A new $26 million contract buyout cost doesn’t seem affordable in these circumstances. However, it won’t be a lump sum payment. It’s payable monthly through 2029. And there’s another factor.
How could Colorado meet Deion Sanders buyout cost?
Colorado did itself a favor by only guaranteeing Sanders 75% of his remaining contract in the event he is fired for losing too many games. It’s otherwise common for schools to fully guarantee 100% of a coach’s contract, leading to massive costs for schools when seasons turn sour.
Colorado owed its previous coach, Karl Dorrell, all that was left on his five-year contract when he was fired in October 2022 (about $8.7 million). Former Texas A&M coach Jimbo Fisher was owed a record $77 million on his fully guaranteed deal when he was fired in 2023.
By only paying Sanders 75% of his contract through 2029, Colorado “saves” some money that could be used to pay a replacement. Instead of paying Sanders $11 million next year as budgeted, Colorado would pay him 75% of his remaining contract balance in “equal monthly installments” — about $8.5 million per year through 2029.
The other $2.5 million of the $11 million that Colorado would have paid Sanders could go to the new coach, who likely won’t command nearly the same level as pay as Sanders did — maybe only $6 million per year or less.
That’s in line with what Utah pays coach Morgan Scalley, who has a five-year, $27 million deal signed last December. The Utes are 9-0 and ranked No. 2 in the College Football Playoff standings.
Will Colorado fire Deion Sanders?
It could depend on the final three games starting Friday. Colorado (3-6) needs to win all three to become eligible for a postseason bowl game. The Buffaloes are 19-27 in Sanders’ four seasons in Boulder, including 3-9 in 2025, 9-4 in 2024 and 4-8 in 2023.
Firing Sanders will incur other costs at the university, including severance payments to Sanders’ assistant coaches, plus commitments to a new coaching staff and players.
An emeritus professor at Colorado, Roger Pielke Jr., estimates it would cost the university about $21 million more to fire Sanders than to keep him, including some payroll savings, lost revenue and other factors through fiscal 2030.
“Somewhat ironically firing Sanders and hiring a cheaper coach and staff means a greater financial commitment to football,” Pielke said.
But Sanders knows something needs to change.
“I’m not getting it done,” Sanders said Nov. 10.
Follow reporter Brent Schrotenboer @Schrotenboer. Email: bschrotenb@usatoday.com
This article originally appeared on USA TODAY: Can Colorado afford to fire Deion Sanders? The answer is complicated
