Franklin's buyout...there are strings attached

[Jerry]

So as has been reported and discussed, it's in the neighborhood of $50 million, which is the 2nd highest ever for a fired coach. (Jimbo Fisher at Texas A&M takes the cake with a cool $76 million.)

But it turns out the $50 million does not come with no strings attached. Basically he's owed $8 million a year through 2031 which is when his current Penn State contract expires but he's also contractually obligated to pursue employment at the best possible salary in the arenas of either coaching, scouting, or media...and to show evidence upon request that he is doing so in good faith...and then if such employment were obtained, the salary at the new job would count against the $8 million.

So for example, if Arkansas were to hire him on at $5 million annually, then Penn State would only owe $3 million. "Only." Ha!

Anyway, the language in the contract...that Franklin has to show Penn State upon request that he is in good faith seeking alternative employment...is an interesting wrinkle that I was unaware of.

 

[IANit]

That's typical. The typical sports reporter seems to think that the school has to drive a Brinks truck to the coach's house and pay him up front to fire him. Just not how it works. There's sometimes an up-front payment as liquidated damages triggered by the firing, but the rest is usually paid over time (the life of the contract) with an offset clause - usually a requirement to mitigate damages on the fired coach's part. The purpose of the buyout is to protect the coach in case they can't find comparable work again. James absolutely will be hired somewhere soon. He may get a little extra out of us, but it won't be $50 million. I also hear reporters throwing around buyout figures that they say make it prohibitive if Kraft were to want to hire another currently employed coach, and they're using the school's buyout figures. That's the number the school has to pay if they fire him based on job performance rather than for cause. The coach's buyout if he wants to terminate the contract is usually much less.

Jimbo Fisher's contract had no duty to mitigate damages. So he's owed the whole thing. But that's not typical. He probably got that deal because he already had a national championship ring.

 

[RickinDayton]

So as has been reported and discussed, it's in the neighborhood of $50 million, which is the 2nd highest ever for a fired coach. (Jimbo Fisher at Texas A&M takes the cake with a cool $76 million.)

But it turns out the $50 million does not come with no strings attached. Basically he's owed $8 million a year through 2031 which is when his current Penn State contract expires but he's also contractually obligated to pursue employment at the best possible salary in the arenas of either coaching, scouting, or media...and to show evidence upon request that he is doing so in good faith...and then if such employment were obtained, the salary at the new job would count against the $8 million.

So for example, if Arkansas were to hire him on at $5 million annually, then Penn State would only owe $3 million. "Only." Ha!

Anyway, the language in the contract...that Franklin has to show Penn State upon request that he is in good faith seeking alternative employment...is an interesting wrinkle that I was unaware of.

"alternative employment" I assume is a very broad term. Could be broadcasting, coaching, athletic administration, education, etc, etc, etc.

 

[Jerry]

"alternative employment" I assume is a very broad term. Could be broadcasting, coaching, athletic administration, education, etc, etc, etc.

Here's the reported passage in the contract:

>>Once terminated, Coach is obligated to diligently search for and make a good faith effort to obtain another position appropriate for his skill set (i.e., coaching, scouting and broadcasting only) and to provide the university upon request with evidence that he is seeking such employment...<<

 

[Jerry]

That's typical. The typical sports reporter seems to think that the school has to drive a Brinks truck to the coach's house and pay him up front to fire him. Just not how it works. There's sometimes an up-front payment as liquidated damages triggered by the firing, but the rest is usually paid over time (the life of the contract) with an offset clause - usually a requirement to mitigate damages on the fired coach's part. The purpose of the buyout is to protect the coach in case they can't find comparable work again. James absolutely will be hired somewhere soon. He may get a little extra out of us, but it won't be $50 million. I also hear reporters throwing around buyout figures that they say make it prohibitive if Kraft were to want to hire another currently employed coach, and they're using the school's buyout figures. That's the number the school has to pay if they fire him based on job performance rather than for cause. The coach's buyout if he wants to terminate the contract is usually much less.

Jimbo Fisher's contract had no duty to mitigate damages. So he's owed the whole thing. But that's not typical. He probably got that deal because he already had a national championship ring.

If he wants to coach next year, he should have no trouble finding employment. There are currently a bunch of positions open and it's hard to believe there wouldn't be a lot of interest in a guy with his credentials.

 

[ryoder1]

I wonder how it works if he goes to ESPN for $3 million a year next season then comes back into coaching the following year at $5 million? I guess they compare on a year to year basis.

 

[Sheriff Coffee]

So as has been reported and discussed, it's in the neighborhood of $50 million, which is the 2nd highest ever for a fired coach. (Jimbo Fisher at Texas A&M takes the cake with a cool $76 million.)

But it turns out the $50 million does not come with no strings attached. Basically he's owed $8 million a year through 2031 which is when his current Penn State contract expires but he's also contractually obligated to pursue employment at the best possible salary in the arenas of either coaching, scouting, or media...and to show evidence upon request that he is doing so in good faith...and then if such employment were obtained, the salary at the new job would count against the $8 million.

So for example, if Arkansas were to hire him on at $5 million annually, then Penn State would only owe $3 million. "Only." Ha!

Anyway, the language in the contract...that Franklin has to show Penn State upon request that he is in good faith seeking alternative employment...is an interesting wrinkle that I was unaware of.

It all comes down to if he wants to work again or not. One can easily go through the motions and then just say nobody is hiring. I would think VT would be a great place for him. But he may well be burned out for now or forever. Tough way to go out.

At the same time, PSU will probably end up paying out AK and JK + others.

 

[Jerry]

It all comes down to if he wants to work again or not. One can easily go through the motions and then just say nobody is hiring. I would think VT would be a great place for him. But he may well be burned out for now or forever. Tough way to go out.

At the same time, PSU will probably end up paying out AK and JK + others.

The broadcasting route may be enticing...at least for a "break" of sorts. A lot less pressure and the pay would be good...though not as good as a head coaching job at a major institution.

I don't think he'll be able to say "nobody is hiring" because there are a number of high-profile openings and he's an obvious candidate. Hell, he might well be the leading candidate. And the way the contract is worded, Penn State has the legal right to verify his good-faith efforts to find a job.

You bring up a good point about AK and JK. The new guy needs to be able to put his own people in the coordinator positions unless he's happy and comfortable with the high-priced coaches who currently occupy those jobs. Not to put too fine a point on it, but AK and JK haven't given the new guy a lot to be happy and comfortable about.

 

[ryoder1]

Franklin may be burned out and do the broadcasting route next season. I don't see him calling it quits for coaching but he will not get a job with a program that has a realistic shot at a NC. I don't see Florida having interest or FSU if those two jobs open up. If they do hire him then they are making a mistake because Franklin will not win a NC. He is at the Va Tech, Maryland, UNC, UCLA, etc level.