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re: Actual Buyout Amount for 2017 is not $12M, but is $12M less the $3.5M already paid
Posted on 10/4/17 at 4:10 pm to BeepNode
Posted on 10/4/17 at 4:10 pm to BeepNode
quote:
The hiring of O was understandable but the amount of money that was thrown at him is bizzare.
The only way it would've been understandable is if a meteor headed towards Earth broke up upon entry into the atmosphere into about 80 pieces, and each of those pieces landed on and destroyed a potential coaching alternative.
0
Posted on 10/4/17 at 4:13 pm to WacoTiger
before this is over I'm sure we'll be paying two coaches not to coach us anymore, thanks Alleva
Posted on 10/4/17 at 4:17 pm to molsusports
We should follow the nebraska plan
Can joe and hire interim until new one is found.
New AD fires O after jan 1
Can joe and hire interim until new one is found.
New AD fires O after jan 1
Posted on 10/4/17 at 4:20 pm to WacoTiger
From my post yesterday...
LINK
quote:
This year he would be owed $12,000,000 minus salary paid to date. If he is fired Nov. 30, 2017 he will have been paid $3,208,333.33. The buyout would be $8,791,666.67. $2,000,000 would be due to CEO in 60 days. The remaining part of the buyout would be paid in equal monthly installments ending 12/31/21. If LSU used the full 60 days to pay the $2,000,000 the first monthly installment would be due 2/28/18. That leaves a period of 46 months to pay the monthly installments. The monthly installments would be $147,644.93. That amounts to $1,771,739.16 annually. It does not appear that subsequent employment reduces the buyout.
LINK
Posted on 10/4/17 at 4:21 pm to WacoTiger
I feel like there were similar issues around Miles' contract.
Is this a lump sum buyout or paid over time? and does any salary O makes somewhere else further reduce this?
Is this a lump sum buyout or paid over time? and does any salary O makes somewhere else further reduce this?
Posted on 10/4/17 at 4:28 pm to WacoTiger
If I understand this correctly, it doesn’t really matter when we fire him. In the end, we are paying him $12M dollars.
If we bought him out at the end of this year, he will have made $3.5M in salary and a $8.5M buyout = total of $12M.
If we buy him out at the end of year 3 he will have made $10.5M in salary and have a $1.5M buyout = total of $12M.
Am I understanding this correctly?
I guess the difference in those two scenarios is if you fire him this year you’re paying a new coach’s salary in 2018 and 2019 as well. Other than that, it looks like Orgeron is getting his $12M regardless of when we fire him.
If we bought him out at the end of this year, he will have made $3.5M in salary and a $8.5M buyout = total of $12M.
If we buy him out at the end of year 3 he will have made $10.5M in salary and have a $1.5M buyout = total of $12M.
Am I understanding this correctly?
I guess the difference in those two scenarios is if you fire him this year you’re paying a new coach’s salary in 2018 and 2019 as well. Other than that, it looks like Orgeron is getting his $12M regardless of when we fire him.
Posted on 10/4/17 at 4:31 pm to UpToPar
You are understanding it correctly.
Posted on 10/4/17 at 4:33 pm to WacoTiger
quote:
You are understanding it correctly.
shite if he’s getting 12 mil regardless I said we just cut bait and fire him today
Posted on 10/4/17 at 4:36 pm to WacoTiger
quote:
So, if he is employed and terminated on December 1, 2018, his buyout would only be around $5M ($8.5M - $3.5 paid in 2018 = $5M). The best time to fire him would be in December of 2018.
peoplekeep getting caught up in the language but in the end he is going to make the money regardless, whether it is thru yearly contract or buyout. The buyout essentially covers his contract if he were to be fired.
If we fired him right now we'd pay him the same amount we would if it were Dec 2018
Posted on 10/4/17 at 4:39 pm to UpToPar
quote:
I guess the difference in those two scenarios is if you fire him this year you’re paying a new coach’s salary in 2018 and 2019 as well. Other than that, it looks like Orgeron is getting his $12M regardless of when we fire him.
Right. Orgeron is going to get his. Do you want to pay him to work, or pay him to not work? (and then have to pay someone else to work).
Posted on 10/4/17 at 4:40 pm to sweetwaterbilly
quote:
shite if he’s getting 12 mil regardless I said we just cut bait and fire him today
The problem is if you fire him now you are paying 3 coaches salaries for the next 3 years.
But, I don’t see why you don’t just fire him, bump Aranda’s salary up $500K and give him a shot for a year or so. There’s no way he’s worse than Orgeron. The only problem with that is if he does decent it may be tough to cut bait and hire a proven HC in 2-3 years.
Posted on 10/4/17 at 4:41 pm to LSUFanHouston
quote:
Do you want to pay him to work, or pay him to not work?
At this point, paying him to GTFO out the program is looking more and more enticing.
Posted on 10/4/17 at 4:42 pm to LSUFanHouston
quote:
Do you want to pay him to work, or pay him to not work?
since he will be paid, and we don't like his "work," might be time to cut the loss, which extends beyond his buyout, we stand to to lose revenue in other areas because of his "work," and the product that he is producing
Posted on 10/4/17 at 4:43 pm to WacoTiger
Thanks for the analysis. I say fire Alleva now. We can either fire O now or later in the year and name Aranda interim HC.
Posted on 10/4/17 at 4:46 pm to WacoTiger
I'm glad someone understands this contract.
Apparently our AD and BoS had no idea what was going on, and what the stakes were.
Apparently our AD and BoS had no idea what was going on, and what the stakes were.
Posted on 10/4/17 at 4:46 pm to WacoTiger
quote:
The best time to fire him would be in December of 2018
Why not wait til January 19 in this scenario ? Does the buyout amount not step down again after year end?
Eta: or is the buyout only reduced by salaries actually paid? That is, time elapsing does nothing to the buyout itself, it is actually due to the salary being paid during that time.
This post was edited on 10/4/17 at 4:48 pm
Posted on 10/4/17 at 4:47 pm to WacoTiger
Posted on 10/4/17 at 4:49 pm to OceanMan
quote:
Eta: or is the buyout only reduced by salaries actually paid? That is, time elapsing does nothing to the buyout itself, it is actually due to the salary being paid during that time.
This.
Posted on 10/4/17 at 4:51 pm to Lester Earl
quote:
f we fired him right now we'd pay him the same amount we would if it were Dec 2018
But we'd essentially be paying 3 head coaches in 2018 season
Posted on 10/4/17 at 4:52 pm to WacoTiger
I think the real story here no one is talking about is how, regardless of what happens, Orgeron is going to get $12 million one way or the other. Guaranteed, whether that’s via earned pay throughout the duration of the contract or through earned pay + buyout pay. That’s a lot of money to guarantee to a HC with a failed coaching resume
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