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OldManRiver
LSU Fan
Prairieville, LA
Member since Jan 2005
4586 posts
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According to Guilbeau, buy out is half of what is believed?
quote:

Had Miles been fired postdated to Dec.31, 2015, his buyout would have been $15 million minus his salary of $4.3 million, according to his contract. That would have been a $10.7 million buyout. That minus his $4.3 million salary would be $6.4 this Dec. 31. It may depend on how one reads the contract. But that is how many read it, including LSU’s attorneys.

Miles’ agent George Bass does not read it that way if he actually read it. He was saying $15 million last year as were other media accounts, but they were wrong.


So if accurate, waiting until the end of the season and postdating the firing to Dec 31 will only cost LSU $6.4 million to be spread out over time? Has anybody else seen a source other than GG?

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Lebowski
LSU Fan
Dallas
Member since Oct 2013
1050 posts

re: According to Guilbeau, buy out is half of what is believed?
Yes. See my earlier post from today.


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112
CaliTigerForLife
LSU Fan
California
Member since Nov 2015
1215 posts

re: According to Guilbeau, buy out is half of what is believed?
He's been extremely butt hurt about going on clown Finebaum's show last year saying multiple times there was zero chance of Miles coming back this year. He'll continue to put out lots of info like this until he's redeemed himself.


TheHat7
LSU Fan
Member since Oct 2015
4086 posts

re: According to Guilbeau, buy out is half of what is believed?
Let's lose a few more games before all this shite.. We still gotta shot of the offense keeps goin in the right direction. If we go 10-2 miles will have proven he can still get it done.


Rickdaddy4188
LSU Fan
Murfreesboro,TN
Member since Aug 2011
31918 posts

re: According to Guilbeau, buy out is half of what is believed?
Im really really worried about lsu going cheap. Its gonna take money to lure coaches to the hardest division in cfb where youll be fired even if you win at a clip never seen before at lsu.


Macavity92
LSU Fan
Member since Dec 2004
4291 posts

re: According to Guilbeau, buy out is half of what is believed?
quote:

quote: Had Miles been fired postdated to Dec.31, 2015, his buyout would have been $15 million minus his salary of $4.3 million, according to his contract. That would have been a $10.7 million buyout. That minus his $4.3 million salary would be $6.4 this Dec. 31. It may depend on how one reads the contract. But that is how many read it, including LSU’s attorneys. Miles’ agent George Bass does not read it that way if he actually read it. He was saying $15 million last year as were other media accounts, but they were wrong. So if accurate, waiting until the end of the season and postdating the firing to Dec 31 will only cost LSU $6.4 million to be spread out over time? Has anybody else seen a source other than GG?


Yes, Miles' contract. GG is wrong (shocking, I know). He decreases it by Miles' salary each year. If that is how it worked, with the contract having started 1/1/13, the buyout would now be $2.1 mil, minus compensation received this year, which would make it $0.

The buyout is no less than $8.6 mil (paid monthly over several years). See paragraph 13 at the link below.

The explanation is this: The buyout does not keep decreasing by year. The first three years of the contract, which started on 1/1/13, the buyout was $15 mil minus any compensation paid in the year he was terminated prior to his termination.

The buyout prior to 12/31/17 is $12.9 mil minus any compensation actually paid in the terminating year. The way I read the contract - and I know this will sound bizarre - is that if he is terminated on Dec 31, 2016 he is owed an $8.6 mil buyout (12.9 buyout-4.3 in compensation in 2016). If he is terminated Jan 1, 2017 he is owed a $12.9 mil buyout (because he would have received no compensation in 2017). This gives the university an incentive to fire him sooner so that he can get a job and reduce the buyout further.

Once lawyers get a hold of this it may all change and my reading may not hold. Any buyout will also likely be negotiated anyway. However, this is what the contract seems to say. And by any interpretation GG's explanation is wrong.

LINK


Martin Blank
Member since Sep 2005
276 posts

re: According to Guilbeau, buy out is half of what is believed?
I can't recreate GG's math but let's face it - if he could do math or read a contract he wouldn't be a small time local sportswriter.

My math is the same as yours as to a firing in 2016. $12.9 million minus the $4.3 he's paid this year is $8.6 million. It's also payable monthly over twice the number of remaining years. Here that's 6 years so it's 72 total payments. LSU never has to come up with one big payment if they go by the letter of the contract.

You hit on the absolute key issue, though:

quote:

This gives the university an incentive to fire him sooner so that he can get a job and reduce the buyout further.


Everyone forgets this part. The buyout reduces below the $8.6 million by any amount Miles earns after termination, and has to use best efforts to find work. If he takes the Purdue job next season for $1.8 million year, you can take $5.4 million off of the buyout and still pay it out over 72 installments. That best efforts clause also means LSU can probably just assume he could make at least $1 million a year minimum as a mid major coach/talking head, i.e. jobs he could get if he used best efforts, even if he did nothing. So the max actual buyout is probably something just under $6 million.

My guess if he gets canned is that rather than LSU waiting for Miles to get a coaching gig, and for Miles to not get a monthly check from LSU like a pensioner, they'll just settle for a lump sum of $4 mil to $5 mil, payable 30 days from the day they shake hands.


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90
WacoTiger
LSU Fan
Waco, Texas
Member since Nov 2003
2099 posts
 Online 

re: According to Guilbeau, buy out is half of what is believed?
Now we have a sports writer practicing law. How pathetic!

I've been practicing contract law for over 30 years. The liquidated damages clause and the contract are very clear.

Macavity92's reading is spot on. Don't know if he is an attorney or not, but he explains it pretty well.

Compensation paid during the year of termination and the additional buyout due must equal the amount set forth in Section 13.A.ii. I don't know how Miles is paid or when he is paid (semi-monthly, monthly, quarterly, etc.), but, assuming that he had already received or will receive his full compensation for 2016, prior to any termination, he would be due $12,900,000 minus any compensation already paid in 2016. If he is terminated after 1/1/2017, he would get $12,900,000 (assuming he had not been paid anything in 2017 yet). The key date is when the notice of termination is given. The termination date is set forth in the notice, but the notice of termination date determines which liquidated damages clause applies.

Interesting to note, if termination occurs in 2016, the liquidated damages amount due is paid over 6 years (twice the period of time remaining (would be 3 years) on the term of the Agreement), per Section 13.A.iii. In addition, as standard in most contracts, there is a mitigation of damages section (Section 13.A.iii) in which Miles is required, in good faith, to seek similar or related employment and that compensation received offsets against the buyout amount.

That is why most coaches try to settle upon termination of employment. If Miles doesn't get another job, LSU could argue that the buyout is reduced because of his default under this clause. If Miles settles with LSU, he can normally get any job that he wants and that salary is not offset against the settlement.

No charge for my services today.

Martin posted while I was posting, but I agree with his analysis as well.
This post was edited on 9/21 at 5:53 pm


LSUwag
LSU Fan
Member since Jan 2007
12190 posts
 Online 

re: According to Guilbeau, buy out is half of what is believed?
I really can't stand Guilbeau. All he does is stir shite.


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83
Ironhead985
Louisiana 633
Member since Jun 2013
6530 posts

re: According to Guilbeau, buy out is half of what is believed?
This is completely germanic.


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Ironhead985
Louisiana 633
Member since Jun 2013
6530 posts

re: According to Guilbeau, buy out is half of what is believed?
F**k
This post was edited on 9/21 at 6:08 pm


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12
Martin Blank
Member since Sep 2005
276 posts

re: According to Guilbeau, buy out is half of what is believed?
Thanks. A nearly as I can tell from a quick glance, the money from all of his sources (state, radio/TV, TAF, etc) is paid monthly on the last business day of the month. Looks like this year the last business day of December 2016 is Friday the 30th. Given that my guess is his date of termination, if any, would be December 30th or 31st.


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20
Macintosh504
Hawaii Fan
Loving Spirits University
Member since Sep 2011
33673 posts

re: According to Guilbeau, buy out is half of what is believed?
He gone


LuckyTiger
Minnesota Fan
Someone's Alter
Member since Dec 2008
7328 posts

re: According to Guilbeau, buy out is half of what is believed?
Pay it.

Best news for lsu in a long time.


beauchristopher
LSU Fan
new orleans
Member since Jan 2008
37814 posts
 Online 

re: According to Guilbeau, buy out is half of what is believed?
The SEC thing is really overblown. Conferences all over are as competitive as ever IMO.

You can afford a loss, maybe even two in the SEC, you can't always afford it elsewhere.

If Miles, as an avg coach can come in and maintain off the talent of an established LSU.. imagine an actual coach who is above average.. the sky is the limit.

The new coach could get by on 2-3 losses.. Miles isn't losing just 1-2 games any more.. he is losing 3-5 now.. Plus he's not even competitive in the losses. Perhaps it we were competitive in these games it might be a different story..

I miss seeing LSU dominate inferior teams, especially in the 2nd half.


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97
1999
Troy Fan
Where I be
Member since Oct 2009
15727 posts

re: According to Guilbeau, buy out is half of what is believed?
The question is will be will boosters be ready to step up after getting burned last year?


Macintosh504
Hawaii Fan
Loving Spirits University
Member since Sep 2011
33673 posts

re: According to Guilbeau, buy out is half of what is believed?
I don't think that will be an issue


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21
tigernation56
LSU Fan
New Iberia
Member since Feb 2013
2746 posts

re: According to Guilbeau, buy out is half of what is believed?
no let him go


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11
windhammontanatigers
LSU Fan
windham-stanford, montana
Member since Nov 2009
4993 posts

re: According to Guilbeau, buy out is half of what is believed?
Guilbeau or not, the good news out of all of this as a Tiger fan who wants to get back to hopefully elite status is that barring a trip to the college playoffs this season , Miles can easily be let geaux without paying an arm and a leg according to the attorneys who have posted on here.


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40
The Belk
Member since Oct 2015
357 posts

re: According to Guilbeau, buy out is half of what is believed?
Remember when Tennessee fired Fulmer after he lost the SEC Championship. They've been great after that. Remember when Texas fired Mack because he couldn't win a National Championship. Yeah Texas is been awesome ever since.

Be careful what you wish for. It's hard to believe but It can get worse.

This post was edited on 9/21 at 8:16 pm


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