BK countered $30 M LSU settlement offer with him getting $43 M.

quote:

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BK offered to take $11 M less to settle and LSU/Landry declined. Should have taken his offer and moved on.

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For a lump sum without mitigation duties? I tell him to frick himself too.

Don’t have any reason to believe you, but if the above is accurate, he was trying to get MORE out of LSU than the contract amount.

ETA: which could easily be considered bad faith…when were these lawyers retained?

LSU could put the $43 million in an investment fund over the 6 years he’s owed and pay him the $54 million with the accrued interests plus the initial $43 million themselves.

Then still have the offset language and force him to make a legitimate effort to find work to stay in agreement with the buyout.

This gives Kelly more than he is owed with no stipulations.

LSU admin and Landry are stupid but Kelly is a POS for that suggestion.

Going to cost them more in bad publicity, lack of top coaching candidates interested in the job, and NIL investments.

It's a no win situation. LSU/Landry needs to settle with BK. Just wait til all the sport reporters are outside the courthouse broadcasting the news world-wide.

These numbers are rough approximations:


The $30,000,000 offered by LSU is the PV of $54,000,000 with a 10% discount rate (split over 2 payments which increase the discount rate). Too low.

The $43,000,000 countered by Kelly is the PV of $54,000,000 with a 4% discount rate. Too high.

The current LIBOR interest rate is 4.99%, current Jumbo CD rate is 4.3 to 4.5%

10+4=14 /2 = 7

The PV of $54,000,000 with a 7% discount rate is $36,000,000.

Reasonable settlement with both sides giving a little is $36 over three years ($15 + $15 + $6 = $36)

or just take the $54 over 6 years. Just get it out of the headlines.

Contract states he's owed $54 M period. The law is in his favor. Nothing about discounts, present value, etc. It's not his problem how or why LSU finds the money because LSU signed the contract.

Now LSU/LANDRY is looking to rip him off. Good luck finding, signing, and paying any top tier coach now and in the future at this CHEAP ARSE program. They dont have the money.