The coaching business is not for the faint of mind. There is no other sector in the world where nearly 20% of high-level companies are made redundant each year. While universities and coaches should be optimistic about their ability to implement a successful program, universities must begin contract negotiations with the end of the coach`s tenure with the resignation or forced resignation or voluntary departure of the coach for “greener pastures.” As mentioned above, many Basketball and Power 5 football coaches derive their income from the appropriation of their name, image and other advertising rights in their university. Unless a coach is otherwise compensated (as John Calipari provides in his contract with the University of Kentucky), the coach should retain the right to enter into assistance contracts with third parties as long as he does not intrude on their obligations arising from media rights, clothing stores or other university sponsorship contracts. Some may have the reason why, if a coach succeeds, the institution would offer to extend his contract anyway, so what would be the purpose of an automatic extension? The proven reality is that many coaches have not gotten overtime, or have even been fired at times after a successful season. There are many reasons for this, but often due to a change of direction at the head of the athletic department or the university itself, due to a change in regime at the level of coaches. A sporting director can make a lot of promises to a coach, but the only thing they can`t promise is that they will be there to overcome them. With more than 200 college football and basketball coaches earning more than $1,000,000 in annual allowances and more than 50 earning at least $3,000,000, the coach reached a level that is difficult to predict a decade ago. In addition to the increasing financial commitments associated with it, negotiating college coaching contracts for both parties has become a much more complex process due to the un standardized nature of each process and outcome. Unlike professional athletes and players who collectively negotiate certain rights, each coaching contract is a unique agreement for itself. Understanding the nuances of such treaties can create a reasonable agreement that benefits and protects both parties without making it a zero-sum game.
Below, you will find some of the main provisions that are common in some of the university`s top levels of coaching contracts, as well as a language that can be beneficial to both parties. Some universities, including Power 5, have begun to block summer camp rights in exchange for separate and guaranteed compensation for the coach and his staff. The underlying assumption is that the sports department (and rights holders) is better equipped to maximize the revenues of a camp, including through corporate sponsorship. While the management of a camp can lead to serious liability problems depending on the program`s ability to generate a consistent participation rate, it may be interesting for the university to retain the rights to operate these camps. It is not uncommon for a contract to be both withholding bonuses and other deferred compensation accounts that, in the event of early termination by the coach, expire to achieve the interests of the university, as well as a full-fledged deferred compensation agreement (effectively financed by amounts that would otherwise have been part of guaranteed forms of compensation) corresponding to the coach`s objectives.