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Early Termination Clause Question for the Legal Minds of the TD.

Posted on 11/18/25 at 8:48 am
Posted by Crappieman
Member since Apr 2025
1837 posts
Posted on 11/18/25 at 8:48 am
Why do Universities offer early termination clauses to coaches that want to leave before fulfilling their contract? If Kiffin leaves OM before 12/31/25, he owes OM $4 M. Why have a early termination clause at all. This gives a coach an easy out.

Don't give them one. Hold their feet to the fire. An OM could then say you are contracted to coach here and no where else. We will not allow you to sign a contract and coach elsewhere, when you have such a contract with us.

Coaching contracts today aren't worth the paper it's written upon. Rarely do coaches or universities honor and fulfill the length of their contracts.
This post was edited on 11/18/25 at 9:10 am
Posted by Ptguru21
Member since Nov 2015
748 posts
Posted on 11/18/25 at 8:49 am to
Easy. Because the coaches have the leverage. A coach would never sign that
Posted by kywildcatfanone
Wildcat Country!
Member since Oct 2012
135802 posts
Posted on 11/18/25 at 8:50 am to
quote:

Easy. Because the coaches have the leverage. A coach would never sign that


They most certainly would if every school required it. But everyone would have to do it the same.
This post was edited on 11/18/25 at 8:50 am
Posted by AshleySchaeffer
Lake Placid, Fl
Member since Sep 2015
1079 posts
Posted on 11/18/25 at 8:50 am to
Because of people like Jimmy Sexton who want their clients to have the best possible outcome if they decide to leave.
Posted by ShreveportTIGER318
Shreveport
Member since Apr 2008
2921 posts
Posted on 11/18/25 at 8:52 am to
Because the United States is a relatively free market that permits adults to freely contract. It's called the market buddy. You can refuse certain terms and conditions, but then you would be like Cousin Eddie holding out for a management position.
Posted by jrodLSUke
Premium
Member since Jan 2011
25738 posts
Posted on 11/18/25 at 8:54 am to
quote:

They most certainly would if every school required it. But everyone would have to do it the same.

Are you really going to go into negotiations with Lane Kiffin and tell him he owes you 10s of millions if it doesn't work out and he wants to leave?
Posted by Passing Wind
Dutchtown
Member since Apr 2015
4766 posts
Posted on 11/18/25 at 8:54 am to
How many threads can you start before 9AM? I think this makes 6.

Every time you have a random thought paw paw you don't have to go type it out.
This post was edited on 11/18/25 at 8:55 am
Posted by Macavity92
Member since Dec 2004
6299 posts
Posted on 11/18/25 at 8:56 am to
Why would a coach sign this without a guaranteed contract with no offset if he was fired?
Posted by jbraua
Oklahoma City, OK
Member since Oct 2007
7702 posts
Posted on 11/18/25 at 8:57 am to
I am a brilliant lawyer, but one does not have to be a brilliant lawyer to understand this. It's the power of negotiations in a free market society where coaches have leverage. For example, if don't want to offer Lane that clause, Florida would happily oblige.
Posted by Crappieman
Member since Apr 2025
1837 posts
Posted on 11/18/25 at 9:01 am to
I can see you enjoy replying to peoples threads more than starting your own. To much empty space between your ears? Don't have any original thoughts of your own? I get it. You're more of a follower of others than a leader. It's ok. We'll help you by staying upwind of your Passing Wind.
Posted by Passing Wind
Dutchtown
Member since Apr 2015
4766 posts
Posted on 11/18/25 at 9:05 am to
quote:

I can see you enjoy replying to peoples threads more than starting your own
You're correct, I'll say it again, because every thought I have doesnt need to be a new thread.

you a leader
This post was edited on 11/18/25 at 9:06 am
Posted by geauxpurple
New Orleans
Member since Jul 2014
16481 posts
Posted on 11/18/25 at 9:05 am to
Which side the contract favors depends on which side has the most bargaining power when the contract is signed.
Saban had no penalty for leaving if he wanted to.
These contracts contain an out provision for the coaches and they are not in breach of the contract if they comply with it. How onerous it is depends on their bargaining power.
Posted by Schmelly
Member since Jan 2014
15799 posts
Posted on 11/18/25 at 9:06 am to
quote:

They most certainly would if every school required it. But everyone would have to do it the same.


Why doesn’t every school just say we’re not paying players more than $10k per season?
Posted by Nutriaitch
Montegut
Member since Apr 2008
10559 posts
Posted on 11/18/25 at 9:17 am to
quote:

Why do Universities offer early termination clauses to coaches that want to leave before fulfilling their contract? If Kiffin leaves OM before 12/31/25, he owes OM $4 M. Why have a early termination clause at all. This gives a coach an easy out.




because neither the coach nor the university wants to sign a contract that doesn't give either of them a way out.

on the day you sign it, you have no way to be 100% sure both parties will still be happy with each other at the end of the contract. So you offer yourself and the other party a way out of it.


Posted by LawTalkingGuy
Member since Mar 2025
106 posts
Posted on 11/18/25 at 9:33 am to
If a coach, or university, wants to terminate a contract early, they can. If there is no provision for early termination then one party may be in breach of the contract. Breach of contract might sound bad, but legally anyone can choose to breach a contract.

If you do breach a contract, though, you have to make the other party financially whole. And the question becomes what is a fair value to pay when one party breaches an employment contract like this via early termination.

And that's where the buyout clauses come in. They are actually liquidated damages clauses. The parties are agreeing that the damages for early termination are hard to measure, and so they go ahead and state what each party has to pay.

You can't force someone to work for you if they don't want to. If a coaching contract has no buyout or early termination provision, the coach can still walk out and go coach somewhere else. But the school would then have to sue them and prove how they are financially damaged.

Some contracts can require specific performance, forcing the breaching party to go ahead and comply, but employment contracts like this would not fall into that category.

Now, a school could try to slip in a non-compete clause, attempting to prevent a coach from working at a rival school for a year....but I don't think it would be enforceable, and no coach would sign it anyway.
Posted by ShreveportTIGER318
Shreveport
Member since Apr 2008
2921 posts
Posted on 11/18/25 at 9:36 am to
If they collude like that they could be considered a cartel and face a number of legal consequences. To be honest,
Posted by UpToPar
Baton Rouge
Member since Sep 2008
22849 posts
Posted on 11/18/25 at 9:37 am to
quote:

LawTalkingGuy
quote:

If a coach, or university, wants to terminate a contract early, they can. If there is no provision for early termination then one party may be in breach of the contract. Breach of contract might sound bad, but legally anyone can choose to breach a contract.

If you do breach a contract, though, you have to make the other party financially whole. And the question becomes what is a fair value to pay when one party breaches an employment contract like this via early termination.

And that's where the buyout clauses come in. They are actually liquidated damages clauses. The parties are agreeing that the damages for early termination are hard to measure, and so they go ahead and state what each party has to pay.

You can't force someone to work for you if they don't want to. If a coaching contract has no buyout or early termination provision, the coach can still walk out and go coach somewhere else. But the school would then have to sue them and prove how they are financially damaged.

Some contracts can require specific performance, forcing the breaching party to go ahead and comply, but employment contracts like this would not fall into that category.

Now, a school could try to slip in a non-compete clause, attempting to prevent a coach from working at a rival school for a year....but I don't think it would be enforceable, and no coach would sign it anyway.


Username checks out.
Posted by DmitriKaramazov
Member since Nov 2015
5566 posts
Posted on 11/18/25 at 9:39 am to
quote:

If a coach, or university, wants to terminate a contract early, they can. If there is no provision for early termination then one party may be in breach of the contract. Breach of contract might sound bad, but legally anyone can choose to breach a contract.

If you do breach a contract, though, you have to make the other party financially whole. And the question becomes what is a fair value to pay when one party breaches an employment contract like this via early termination.

And that's where the buyout clauses come in. They are actually liquidated damages clauses. The parties are agreeing that the damages for early termination are hard to measure, and so they go ahead and state what each party has to pay.

You can't force someone to work for you if they don't want to. If a coaching contract has no buyout or early termination provision, the coach can still walk out and go coach somewhere else. But the school would then have to sue them and prove how they are financially damaged.

Some contracts can require specific performance, forcing the breaching party to go ahead and comply, but employment contracts like this would not fall into that category.

Now, a school could try to slip in a non-compete clause, attempting to prevent a coach from working at a rival school for a year....but I don't think it would be enforceable, and no coach would sign it anyway.


This is essentially the correct answer from a legal perspective.
Posted by Crappieman
Member since Apr 2025
1837 posts
Posted on 11/18/25 at 9:46 am to
Best explaination I've heard. Thanks
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