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re: Explain to me why Kelly would take a reduced buyout?

Posted on 11/9/25 at 8:06 pm to
Posted by ultratiger89
Houston, Tx
Member since Aug 2007
3594 posts
Posted on 11/9/25 at 8:06 pm to
Why ask, it’s none of your business
Posted by Ebridg3
Baton Rouge, La
Member since Sep 2016
2881 posts
Posted on 11/9/25 at 8:13 pm to
All he can make is 54 million whether he works or not. If he gets another job, it's 54 million minus what that job pays him from LSU.

If he settles for less AND he works elsewhere... he gets the other job money AND the full settlement
Posted by Fast Times @ LSU
Camas
Member since Jan 2005
1850 posts
Posted on 11/9/25 at 9:16 pm to
The original contract… he would get paid out over time. We get to subtract out from our monthly payout any income he makes from another job.

My understanding is we were offering a lump sum 1x payment. So, a bigger $ now or over the length of the contract less whatever he’s making.
Posted by vshouse
Opelousas
Member since Oct 2013
95 posts
Posted on 11/9/25 at 9:38 pm to
Because he wants to coach again and get a max contract. If he does that before he agrees to a lump sum with LSU, then LSU only owes him the difference from the amount of his new yearly contract and the 10 million lsu owes per year. So why not take a buy out then go sign another 8-10 year 8-10 million LSU owes a year contract.
Posted by JoeyP239
Member since Nov 2025
21 posts
Posted on 11/9/25 at 10:26 pm to
For the same reason a lottery winner takes a reduced lump sum payment over annuity payments. For one, NPV of $54 million paid out over 6-8 years can be calculated into a present value lump sum. Also, some people would rather a bigger amount up front just in case they die before ever getting all the yearly payments do in the future.

That’s why Ohtani’s deal is so risky. He could die before he ever gets all the deferred money owed to him. Now, that money would go to his heirs but he wouldn’t get to enjoy it
Posted by notbilly
alter
Member since Sep 2015
6665 posts
Posted on 11/9/25 at 10:27 pm to
quote:

If he doesn't want to coach again, then he should not settle


The contract requires him to do his due diligence to seek employment for the term of the obligation. So he has to seek employment for 6 years. That can get messy which is why it’s in everyone’s best interest to settle.
Posted by Amused Lurker
Atlanta
Member since Dec 2015
2104 posts
Posted on 11/10/25 at 6:07 am to
We owe him 54m over 6 years. If you assume Kelly can make 8% investing his money, then you take $35-40m lump sum and be done with it. No payment risk and he can coach somewhere else.
Posted by craignettles
Member since Jan 2005
3300 posts
Posted on 11/10/25 at 6:13 am to
It is simple. the contract states that he must actively seek a coaching position. That new contract would go against what LSU owes him. So if he takes $30 million upfront then he can get any job he wants without the set off.
Posted by LSUtiger89
Baton Rouge
Member since Dec 2007
4486 posts
Posted on 11/10/25 at 6:15 am to
Time and value of money upfront vs over years. Add that to income of a new coaching opportunity
Posted by TaderSalad
mudbug territory
Member since Jul 2014
25757 posts
Posted on 11/10/25 at 6:27 am to
quote:

We owe him $54 million why would he take less?



Wants to keep coaching. If he negotiates a lower buyout and as a lump sum, then it frees him up for another 10mil a year job.

Essentially, LSU is holding him hostage right now... just for $800k a month.
Posted by Penrod
Member since Jan 2011
51461 posts
Posted on 11/10/25 at 6:30 am to
quote:

I’m open to a negotiated buyout”

His words. Now of course he’s backtracking like the b*tch he is

Those words don’t mean he’d take $25 million

Anyone with the slightest sophistication in these matters realizes that he’d accept different payment schedules for differing amounts, considering the time value of money. I’d expect somewhere in the neighborhood of $46 million up front.

Another way in which the contract payout could be reduced is if LSU waves the mitigation clause that reduces the payout by Kelly’s salary should he take another job. Maybe they negotiate that away, or partially away. Maybe Kelly agrees that any future salary during the payout period will reduce his payout $1 for every $2 instead of the current $1 for $1. That would enable him to coach and get half pay.

Unless there is a “cause” trigger, or a mitigation agreement, the whole present value of the contract will be paid out.
This post was edited on 11/10/25 at 6:32 am
Posted by Penrod
Member since Jan 2011
51461 posts
Posted on 11/10/25 at 6:37 am to
quote:

Please I beg you and others to return to high-school. We have to get our education standards up. Being a state full of retards like yourself is tiresome.

That was unnecessarily harsh…but correct.
Posted by BallChamp00
Member since May 2015
7132 posts
Posted on 11/10/25 at 6:38 am to
quote:

“I’m open to a negotiated buyout” His words. Now of course he’s backtracking like the b*tch he is


With the guy who hired him. Not a circus.
Posted by IM_4_LSU
Savannah, GA
Member since Mar 2014
11585 posts
Posted on 11/10/25 at 6:40 am to
Big LS $ right now that doesn't get reduced with future pay.
Posted by mdomingue
Lafayette, LA
Member since Nov 2010
41714 posts
Posted on 11/10/25 at 8:34 am to
quote:

Being reasonable since it’s known he drank, golfed and hit the beach during recruiting season

This kind of stuff ticks me off

I say lawyer up!!!

Drag him through the mud if he wants to play hardball




So, waste money on lawyers and pay the same thing anyway? Got it, you have a brilliant legal and financial mind.
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