Matt How Much is the Buyout

Is it really$15.4mm as has been so widely reported and often cited as the reason the U of A " can’t afford to let him go." I saw the information posted below from someone that had reviewed the details of Bielema’s employment agreement. I have a request - can you ask the U of A to verify how much Bielema would be owed and the timing of the payments? When you say he is owed $8mm as opposed to $15mm that’s very significant.

" I did the math called for in the Employment Agreement (found using the links above). It appears to me that taking the $15.4M & dividing it by the 72 mo term of the contract yields a monthly value of $213,888.89.
According to the buyout language, that amount would be paid for the remaining months left on the contract – & that’s what the buyout actually would be.

If that were to begin on Nov 1 of this year, the contract buyout value would be $8,127,777.82. That number could be reduced if CBB gets “other employment.” So, even if he did TV or anything else, the pay for that would reduce what the UA owes.

Also, for what it’s worth the original max buyout was $12.8M. At the end of the day, the difference in the original max buyout & the current max buyout is $36,111.11 per month. In the grand scheme of things, that’s not as outlandish as we have all thought."

Not Matt, but couldn’t the buy out be re-negotiated? Perhaps Bielema would take a lesser amount if the payments were accelerated over a shorter period of time.

Good one. Never heard of that happening before. Tell that to Coach BB lawyer and agent. Someone before in a post made the point it can be paid out over several years.

Bret’s contract does include an amendment that would offset compensation owed to him if he receives any money from a new coaching or administrative job, freelance or consulting work, a side business he owns, etc. If he doesn’t want to do anything through the end of his contract with Arkansas, assuming he is fired, he would receive the total amount owed to him at the date of his termination, which through Dec. 31 of this year is $15.4 million, and $11.7 million in the calendar year 2018.

I don’t foresee an employee who is under pressure voluntarily going to his/her employer and asking for less than what has been agreed upon.

Matt - Thanks for the response . Is your understanding of the amount that would owed based on your reading of the employment agreement and/or has the ADG asked the U of A to verify the mount that would be owed?

I am not an attorney but it appears whatever amount is owed will be spread out over the remaining months left in the contract and there is a provision whereby it would be reduced if he receives other compensation subsequent from being let go. I would link the contract but it is from an ADG competitor

It depends on what his future plans are and how long he thinks he would be out of a head coaching job.

I wouldn’t expect that Bielema would ask for anything less than what is owed him. However he is young and employable and I assume that he would want to coach again, sooner rather than later. That’s where things get interesting. Certainly if Bielema took another job then Arkansas would be subsidizing somebody else’s new coach. But the buyout would be reduced by whatever amount he wold make at his new gig. If he were terminated, would he want to take some well-paid time off? Or would he want to jump back into coaching immediately? As far fetched as it sounds, what if someone wanted to hire him away from the UA? In that case, he would actually owe the UA a buyout unless a mutually beneficial agreement could be negotiated. An unlikely scenario perhaps, but I suspect that Bielema could still be an attractive coaching hire to some programs outside of this part of the country.

Contracts are rarely black and white like the paper they are printed on. Lots of negotiating can happen behind the scenes–none of which would mean Bielema is asking for less than he is owed.

Jerry can pay it!!

Can you hire a new HC at end of season and fire CBB on 01/01/18? In effect, have 2 HC’s for a month.

Wasn’t Houston Nutt getting paid by 2 different schools at one time to not coach?

But then Oregon State’s Gary Andersen does that today. Walks away $12 million.

Stunning.

I doubt he will be let go. He will get another year and will make some assistant coach changes (I hope that is what happens… I like coach B and am willing to give him another year.) Having said that you have a number of assistants that have multi-year contracts. Not sure how their renewal works, but you can probably tack on an additional $2-3 MM for them.

Give Coach B another year and offer no extensions to the assistants. That should motivate them.

No more time.

He had his chance and blew it. It’s been the same crap over and over, can’t learn from his failures.

I think GA’s agent will get involved and not let him walk away from the 12 million owed by Oregon State. Unless there is something Gary is hiding then I cannot imagine his agent letting the 12 million go to waste.

Read the full contract. The contract is prorated based on the number of months and days remaining in the year. As of today, the buyout is about $12.5 million dropping to $11.7 on January 1. After Jan 1, it drops by about $10,400 per day.

Thank you for the clarification, although I think your numbers are a little off as well. I’m working on getting a clearer figure.

Matt can you also please clarify the duration of payments? Almost positive it will be paid over 3+ years but would be interested to hear that “officially.”

The payments would be made monthly through the end of his employment agreement, which is Dec. 31, 2020.

I should be close. Obviously, it is not prorated over the full length of the contract because, based on the chart, the amount of reduction on Jan 1 varies from $0 to $4 million from the prior Jan 1. And, if it was, the buyout now would be less than the buyout on Jan 1, 2018. Therefore, it is logical that during each year you prorate the amount of the reduction. From Jan 1, 2017 to Jan 1, 2018, that is $3.7 million. Since there is 2 months and 21 days remaining in 2017, that should be about 82/365x$3.7 million plus $11.7 million which equals $12.53 million. The contract uses a slightly different formula; that is, prorated by months and partial months, but the difference is insignificant.