Contract buyouts: thanks, Pat – great job on that extension

Not all contract buyouts are equal. And how they are structured can sometimes lead to whether they impact a decision to fire a coach. Yesterday around 1:00 pm when I originally scheduled this post, Mike Norvell was still the Florida State coach; but the Seminoles were willing to part ways with him and around $47 million after Saturday’s loss to Clemson. Money talks and losing coaches walk. The axe fell on Norvell around 4 pm.

But, back to things nearer and dearer: it is no secret that former athletic

director Pat Hobbs didn’t want to bring back Greg Schiano after Chris Ash was fired, yet Hobbs extended GS’s contract beginning on March 1, 2024. And running through February 28, 2030. Meaning that if the head coach was released without cause at the end of the 2026 season, he would be paid for the next three seasons. #smh

Some highlights of the Schiano extension:

• There are a lot of incentive bonuses, virtually none of which will be enacted.
  • He did collect $100,000 for making the Rate Bowl in 2024 against Kansas State
  • He hasn’t, and isn’t, making it to a CFP game
    • CFP First Round Game Appearance $200,000
    • CFP Quarterfinal Game Appearance $250,000
    • CFP Semifinal Game Appearance $300,000
    • CFP National Championship Game Appearance $350,000
    • CFP National Championship Title $500,000 (have you stopped laughing yet?)
  • He will not be named Big Ten Coach of the Year ($100,000) or National Coach of the Year ($100,000)
  • He is likely not getting a bonus for season ticket sales; okay, maybe the first or second benchmark
    • Confirmed and Verified Number of Annual Season Tickets sold (maximum $200,000)
      • Season tickets sold above 20,000 — $50,000
      • Season tickets sold above 24,000 — $50,000
      • Season tickets sold above 28,000 — $50,000
      • Season tickets sold above 32,000 — $50,000
• The “buyout” is not a lump sum, nor is it his full salary.
  • “In the case of termination without cause by the University (which shall be by written notice to you), the University, on a bi-weekly basis consistent with the University’s regular payroll, will continue to pay Head Coach an amount equal to 76.875% of Head Coach’s total remaining Annual Base Salary”
    • March 1, 2027 – February 29, 2028: $7,250,000        $5,573,437.50 = 76.875%
    • March 1, 2028 – February 28, 2029: $7,500,000        $5,765,625
    • March 1, 2029 – February 28, 2030: $7,750,000        $5,957,812.50
  • Last three years payout total: $17,296,875 paid bi-weekly consistent with the University’s regular payroll

The recent firings are a good example of other ways to structure a buyout. Let’s take a look at each.

Mike Locksley, Maryland: Locksley’s firing kicked off the 2026 coaching Carousel. And per On3, this is what his buyout looks like:

• The Terrapins owe their head coach $9.94 million; a tad more than half of what RU would owe Schiano.
• They have to pay half of the buyout — $4.97 million — in a lump sum within 60 days of termination.
• Locksley is owed 65% of his total remaining compensation. After the lump sum payout, he would receive the remainder of his buyout in equal installments through the end of his contract in 2028. He signed a five-year contract extension in 2022, but because the Terrapins reached at least seven wins in 2022 and 2023, it kicked in automatic one-year extensions.

Had they waited til the end of the season, the buyout would have dropped to $8.9 million

• Buyout would drop to $4.5 million after the 2027 season
• Buyout would drop to $0 million after the 2028 season

Dave Doeren, NC State: Doeren was the winningest coach in NC State history with 98 wins (boy, you’d think they’d at last keep him around until he got 100!) But, this is a win now world; sorry, Dave.

The base salary seems a bit low, but then, North Carolina is a right to work state. Theterms of the buyout state that $3.25 million is base salary for the 2026 season, but his buyout is nearly $10 million

• total annual compensation for 2026 was roughly $6.375 million
• his buyout is calculated strictly from his base annual salary (which was $3.25 million for 2026).
• the remaining three seasons on the contract represent $9.75 million, with the remaining pro-rated months of the 2026 calendar year pushing the total obligation to $10.3 million

Dave Aranda, Baylor: As a private school, Baylor doesn’t have to release contract details, nor respond to requests – no FOIA here. But there are sources that figure these things out:

• Annual Salary: ~$4,702,570 (excluding performance bonuses)
• Original Contract Expiration: December 31, 2029 (signed a 2022 extension)
• Current Buyout Estimate: ~$12.9 million

Then there are coaches that some say should be bought out…now. Well, maybe that now is past tense today.

Lincoln Riley, USC: Beating Ohio State can cure a lot of ills and quiet a lot of critics. But, Reilly has had a rough few years trying to restore the glory of Troy in L.A. Despite winning records, he hasn’t won enough, hasn’t won the big games ( don’t talj to Ryan Day!), hasn’t made the CFP. After four Big XII titles and five bowl games in five years at Okkahoma, a lot was expected from him. He has a 42-20 record at USC through this past weekend, but has faced scrutiny after tough losses, like the one against Wisconsin a couple weeks ago. Oh, and thanks, Wisky, for that recent flop against the Hawkeyes.

CBS Sports’ Brad Crawford said, “Enough”. It is time for Riley to go. Ohio State says, “You sure about that?” And how much would that cost? Again, as a private school, USC does not have to answer those questions, but….

Major outlets like CBS and Bleacher Report estimate that USC would owe Riley somewhere in the neighborhood of $70 million. That’s what is believed left on his original $110 million contract.

Kinda makes the Schiano extension look like a bargain.