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notbilly
LSU Fan
Louisiana
Member since Sep 2015
627 posts

The buyout is just under $9.4 Million and decreasing daily...
Ok. I'm no lawyer so someone please correct me if I'm wrong. Doing this on my phone so forgive the typos..

Link to BoS meeting agenda from March

The above link is a 159 page agenda. 34 pages of which are Ed Orgeron's contract. Scroll down to about page 146/147 of the document and you'll see the buyout portion. The buyout was $12 million at the beginning of 2017 and 'only' $8.5 million on January 1, 2018. The contract has very specific language explaining via example that if he were fired on 11/30/2018, LSU would owe him $5,291,677.

Still a ridiculous buyout but $3.5 milion better than we thought.

Note: I cannot find a copy of his approved contract so I am assuming that this one was approved and nothing has changed from it.
This post was edited on 10/1 at 11:43 pm


Golfer
LSU Fan
Member since Nov 2005
67399 posts

re: The buyout is just under $9.4 Million and decreasing daily...
Correct. Media loves the gotcha headline of $12M, though.

This post was edited on 10/1 at 10:57 pm


Tunasntigers92
LSU Fan
The backseat of a greyhound bus
Member since Sep 2014
9275 posts

re: The buyout is just under $9.4 Million and decreasing daily...
He's toast at the end of the season with a 3-9 record.


5Alive
LSU Fan
New Orleans
Member since Jul 2009
6364 posts

re: The buyout is just under $9.4 Million and decreasing daily...
So let’s fire Yaw Yaw on January 1.


airfernando
USA Fan
Member since Oct 2015
9656 posts

re: The buyout is just under $9.4 Million and decreasing daily...
(no message)
This post was edited on 10/1 at 10:58 pm


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11
cypressbrake3
LSU Fan
Member since Oct 2014
1882 posts
 Online 

re: The buyout is just under $9.4 Million and decreasing daily...
Interesting, but I've read several times that his buyout reduces to 6 million on 1/1/19. That doesn't square with your 11/30/18 number of 5,291,677.

But I hope you're right.


AshLSU
LSU Fan
Member since Nov 2015
6765 posts

re: The buyout is just under $9.4 Million and decreasing daily...


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321
memphis tiger
LSU Fan
Memphis, TN
Member since Feb 2006
6003 posts

re: The buyout is just under $9.4 Million and decreasing daily...
quote:

he were fired on 11/30/2018, LSU would owe him $5,291,677.


Do you realize how much damage he can do by the end of next season.

Once he knows he is a lame duck, you really think he will even pretend to recruit.

Whoever follows him in 2019 will have absolutely nothing to work with.

Hell, it won't surprise me if some of the best players from this freshman class transfer.


ShaneTheMaster
LSU Fan
Wants New Coach
Member since Nov 2009
739 posts

re: The buyout is just under $9.4 Million and decreasing daily...
So does this mean it can happen?


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71
sheek
LSU Fan
Austin, TX
Member since Sep 2007
40184 posts

re: The buyout is just under $9.4 Million and decreasing daily...
goes winless in the SEC, he gone. That hasn't been achieved since I was 6 years old in 1983. I thought that season was going to be great with beating #12 FSU and blowing out #9 Washington which was the largest crowd ever during that T.S. Configuration and seating with just the old West Upper and lower bowl along with that shitty arse PA system. O-T: What happened in 83? Did someone get hurt or we got a bunch of injuries? I attended all the home games 83', but I was little young to remember what happened to LSU for going winless in the SEC that year.
This post was edited on 10/1 at 11:31 pm


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MOT
Houston Astros Fan
Member since Jul 2006
16899 posts

re: The buyout is just under $9.4 Million and decreasing daily...
quote:

Interesting, but I've read several times that his buyout reduces to 6 million on 1/1/19. That doesn't square with your 11/30/18 number of 5,291,677.

But I hope you're right.

The way it reads in the link is that the buyout amount for each calendar year is reduced by the amount of salary he was already paid YTD at the time of the firing. So the 2018 example starts at 8.5 on 1/1/18, then is less the amount he would be paid through November.

The 2019 amount is 6...but it's technically only exactly 6 in January.


sheek
LSU Fan
Austin, TX
Member since Sep 2007
40184 posts

re: The buyout is just under $9.4 Million and decreasing daily...
so If LSU waits to New Years Day 2018, LSU is saving money on the buyout. The buyouts are usually amortized. Is it all front loaded or on a set scheduled yearly payout?


notbilly
LSU Fan
Louisiana
Member since Sep 2015
627 posts

re: The buyout is just under $9.4 Million and decreasing daily...
quote:

Interesting, but I've read several times that his buyout reduces to 6 million on 1/1/19. That doesn't square with your 11/30/18 number of 5,291,677.

But I hope you're right.


It is kind of goofy but the $6 million number you read is correct for January 1, 2019. It would be a million dollars cheaper to fire him in 12/31/2018 than to fire him the following day. The difference is bc the buyout(termination) is reduced by 2.5 million bt 1/1/18 and 1/1/19 however he would make 3.5 million. So the buyout during the 2018 calendar year is reduced by his compensation earned YTD.

It looks like all the articles I've seen reference the advocate article from March which is why I searched for the actual contract.
This post was edited on 10/1 at 11:12 pm


Golfer
LSU Fan
Member since Nov 2005
67399 posts

re: The buyout is just under $9.4 Million and decreasing daily...
quote:

Is it all front loaded or on a set scheduled yearly payout?


According to the contract linked. $2M is due within 60 days of termination. The remainder is paid out over the term of his contract pro-rata.


sheek
LSU Fan
Austin, TX
Member since Sep 2007
40184 posts

re: The buyout is just under $9.4 Million and decreasing daily...
quote:

term of his contract pro-rata.


thanks Golfer for clarifying that fact.


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30
SportTiger1
SMU Fan
Stonewall, LA
Member since Feb 2007
13294 posts

re: The buyout is just under $9.4 Million and decreasing daily...
quote:

So let’s fire Yaw Yaw on January 1.


I'm in. If les can get him a decent job this year, we may be in bidness


notbilly
LSU Fan
Louisiana
Member since Sep 2015
627 posts

re: The buyout is just under $9.4 Million and decreasing daily...
quote:

so If LSU waits to New Years Day 2018, LSU is saving money on the buyout.


Not really. LSU would owe O $8.5 million on 1/1/2018. If they fired him O on 12/1/2017 instead, he'd be owed $8,791,667.


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40
SportTiger1
SMU Fan
Stonewall, LA
Member since Feb 2007
13294 posts

re: The buyout is just under $9.4 Million and decreasing daily...
quote:

notbilly


Well done sir


Tiger Phil
LSU Fan
I see burnt orange everywhere
Member since Nov 2007
1159 posts

re: The buyout is just under $9.4 Million and decreasing daily...
Found it.

The payout is prorated based on the salary received to date. So it is $8.5MM in January 2018.

Let's say we fire him on December 1, 2017. He will have been paid 11 months of $3.5MM, so that is $3.209MM, we would owe him a buyout of $8.79MM.

The first payment of $2MM is due 60 days after termination, so February 1, 2018. The rest of it is payable over the length of the contract. The contract runs through December 2021, so we would owe him roughly $1.7MM per year except the first year, in which we owe him $3.7MM.


Godfather1
Army Fan
SE Louisiana
Member since Oct 2006
46782 posts

re: The buyout is just under $9.4 Million and decreasing daily...
quote:

The payout is prorated based on the salary received to date. So it is $8.5MM in January 2018.

Let's say we fire him on December 1, 2017. He will have been paid 11 months of $3.5MM, so that is $3.209MM, we would owe him a buyout of $8.79MM.

The first payment of $2MM is due 60 days after termination, so February 1, 2018. The rest of it is payable over the length of the contract. The contract runs through December 2021, so we would owe him roughly $1.7MM per year except the first year, in which we owe him $3.7MM.




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