It seems to me...
that some people are confusing a coach's buyout with what happens when a coach gets fired. If Jamie Dixon wants to leave and go someplace else, he is responsible for buying out his contract with Pitt. These days it seems as if most of these deals include a buyout that is $X times Y years left on the contract, so that the amount to buy the deal out decreases as the length remaining on the contract lessens. In other words, if Dixon wants to leave with six years left on his contract and the number is $1.5 million per year left, he owes Pitt $9 million. If he wants to leave with five years left on his deal then he would owe Pitt $7.5 million, and so on.
However that situation is COMPLETELY DIFFERENT than what happens if Pitt wants to fire Dixon. I have certainly not seen Dixon's contract, but in most situations where a coach gets fired the school owes the coach the full value of what remains on the contract. If Dixon were to have 5 years at $3 million per season left on his contract and Pitt were to fire him, then for the next five years Pitt would owe Jamie Dixon $3 million every year. Typically, the one and one one way that that number gets reduced (not eliminated, reduced) is if the coach who gets fired gets a job coaching someplace else. So that if Pitt fired Dixon with 5 years and $3 million per year left on his contract and Dixon takes the Ben Howland route and doesn't coach for two seasons before signing on to coach somewhere else, Pitt would owe Dixon the full $3 million for both the first and the second seasons, and then they would owe him some amount smaller than $3 million for years three, four and five. That's what typically gets negotiated in these types of deals, what the discount is off of full value if the fired coach takes a position somewhere else. When Ben Howland didn't work for two seasons, UCLA owed Ben Howland the full value of the contract they signed for those two years.
The notion that a school can get out of their financial obligations to a coach simply by firing him is wrong. Completely and totally wrong. If Pitt were to fire Jamie Dixon when he has 6 years at $3 million per year left on his contract and Dixon decides to leave coaching forever and return to his real first love, acting, then Pitt will almost certainly be paying Jamie Dixon $18 million over those next 6 years.
When a school fires a coach, they are NOT buying out the coaches contract. They may negotiate an agreement that would say that instead of paying you $18 million over the next 6 years the school will make one lump sum payment of $14 million (or some such number) right now, but that number is based on the present value of the installment payments remaining on the contract, not on the buy out clause in the contract. Because a coach buying out a contract to leave and go elsewhere and a coach getting fired are two completely different situations.
The fact that schools who fire coaches basically owe the coach the full value of the money remaining on their deal is one reason why you almost never see a coach who has four or five or six years left on their contract get fired. Because most schools simply will not pay a guy that much money to do nothing.
This post was edited on 4/18 12:56 PM by Joe the Panther Fan