Buyouts

[Bluetick Believer]

Just a question -- what is the point of buy-outs? I get it from the school's perspective because they want some insurance that a coach will not up and leave without some compensation. That does not seem to work very well BTW.

But how did this get started that if a coach is performing so poorly that a school wants to fire him that he gets a huge amount of money? I don't get that.

I also wonder if this does not lead to poor job performance. My motivation to work would certainly go down if I knew that I would get 5 million dollars for getting fired.

Just curious if anyone has any idea how this all got started because I just don't get it.

 

[GAVol]

Just a question -- what is the point of buy-outs? I get it from the school's perspective because they want some insurance that a coach will not up and leave without some compensation. That does not seem to work very well BTW.

But how did this get started that if a coach is performing so poorly that a school wants to fire him that he gets a huge amount of money? I don't get that.

I also wonder if this does not lead to poor job performance. My motivation to work would certainly go down if I knew that I would get 5 million dollars for getting fired.

Just curious if anyone has any idea how this all got started because I just don't get it.

It's two parties entering into a contract. Both sides want to be insulated from the other party terminating the agreement early.

 

[Jeepkuntry]

I understand the concept of a buyout, but there should be a limit. No way should Dools have gotten 5 million to go to the house. Personally I'd like to see a cap on early termination for poor coaching, maybe a million or two.

 

[81Bubbavol]

Another aspect is Quid Pro Quo.

If you want a coach to pay you $2MM for going to another school, then what will he get in return for losing that option? The answer is a "severance package".

If you want to know who to blame for CD's $5MM buyout just look around. The total meltdown that happened after Kiffin's departure and the outrage over the "miniscule" buyout caused us to ask for a much larger one with the next coach. What did we get in return? $5MM severance package.

JMHO TIFWIW

GBO !