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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 4:53 pm to Chad504boy
Posted on 10/4/17 at 4:53 pm to Chad504boy
quote:
But we'd essentially be paying 3 head coaches in 2018 season
thanks Alleva, he used the MLB model(i.e. A-Rod still collecting a check from the Rangers, Crack Head Hamilton paid $80mil to go away from the Angels, et al)
0
Posted on 10/4/17 at 4:53 pm to BeepNode
“ The hiring of O was understandable “
Not in any LsU football world that I’m familiar with is the hiring of a coach with his resume understandable after the last 16 years of football success.
Not in any LsU football world that I’m familiar with is the hiring of a coach with his resume understandable after the last 16 years of football success.
Posted on 10/4/17 at 5:44 pm to OceanMan
The liquidated damages changes each year. In 2018, the liquidated damages are $8.5M, less any amount paid to him in 2018. After 2018, the liquidated damages only drop $2.5M each year instead of $3.5M from 2017 to 2018. That is why 2018 is the most economical (remember, I didn't approve the original contract) for LSU. It really doesn't matter if you terminate in 2017 or 2018, either way, Coach is going to get $12M, but he could get more than $12M over the life of the contract if you wait to terminate in 2019 or thereafter. I agree that whenever you terminate him, you will also have the new coach's salary, so you are possibly saving some money by not paying for a new coach's salary (but how much will we lose in contributions if he remains our coach?).
Posted on 10/4/17 at 6:35 pm to WacoTiger
quote:
The best time to fire him would be in December of 2018.
Agreed.
Posted on 10/4/17 at 9:03 pm to WacoTiger
quote:
After 2018, the liquidated damages only drop $2.5M each year instead of $3.5M from 2017 to 2018. That is why 2018 is the most economical (remember, I didn't approve the original contract) for LSU.
He gets the full $12 million no matter what. When he is terminated he gets $2,000,000 within 60 days unless there is less than $2 million remaining on the contract. The only thing that really changes based on when he is fired is the monthly payment.
After the $2 million payout the annual payment to O is less than half of what we pay him now. It is economical right away, especially when you consider the dip in revenue if he stays.
Posted on 10/4/17 at 9:13 pm to Lonnie4LSU
quote:
Not in any LsU football world that I’m familiar with is the hiring of a coach with his resume understandable after the last 16 years of football success.
Trying him out for a year or whatever kind of made sense at the time. Guaranteeing him 4 years salary on top of a bloated salary is what blows my mind and makes me think LSU Football may have too much money to play with to just throw millions away like that.
Posted on 10/4/17 at 9:20 pm to LSUFanHouston
quote:
I feel like there were similar issues around Miles' contract.
There was and that's what is so crazy about this contract.
1. People were upset about the buyout and then they immediately do the same thing with O.
2. Les Miles had leverage though. He was a successful football coach by most objective standards and it's plausible that other programs may have wanted to hire him at the time his contract was redone.
3. O had no leverage to command $12m guarantee. None. There was basically no reason to throw that money around like that.
They probably would have been better off not giving Ogeron any guarantees, setting $3m on fire and taking their chances with that. Sure, hindsight is 20/20 but O had not established himself as a successful coach yet. He still may turn things around, but it would not have been difficult to wait until he starts being successful before giving him buyouts to keep poachers away.
Posted on 10/4/17 at 9:26 pm to BeepNode
TERRIBLE contract for LSU.....GREAT deal for coach O !
Rank and file TAF members will go ballistic over paying this, Miles buy-out AND a new bloated head coaches salary. Could see a SIGNIFICANT drop in contributions.
Easy to place the blame on Aleva but, was the board asleep ?
Time for some accountability at the top !
Rank and file TAF members will go ballistic over paying this, Miles buy-out AND a new bloated head coaches salary. Could see a SIGNIFICANT drop in contributions.
Easy to place the blame on Aleva but, was the board asleep ?
Time for some accountability at the top !
Posted on 10/5/17 at 10:03 am to WacoTiger
quote:
After 2018, the liquidated damages only drop $2.5M each year instead of $3.5M from 2017 to 2018.
Ok, got it, that is the part I wasn't clear on.
Do you typically see buyout amounts protect so much on the back end of the contract?
In essence, he basically got himself 4 years guaranteed, which I suppose is what any coach would do to try and prove himself. I think we all need to remember if he can make this work, his coaching opportunities will diminish greatly after this tenure.
i think the $12M seems really high, but that has a lot to do with us wanting him fired after 5 games into his tenure.
Posted on 10/5/17 at 10:05 am to cypressbrake3
Comforting to know that Alleva wasted 10s of millions of dollars on the Miles and Orgeron contracts plus whatever assistants were due money.
Guess a million a year only gets you incompetence in the college AD department. And people thought inflation was out of control in Venezuela.
Guess a million a year only gets you incompetence in the college AD department. And people thought inflation was out of control in Venezuela.
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