When Chip Kelly announced this past Wednesday that he would be leaving for the Philadelphia Eagles, it marked the 27th head-coaching change of the 2012-13 FBS season.
With all the chatter focusing on Kelly’s transition to the NFL — and the apparent void felt by the University of Oregon community — many overlooked the fact that the athletic department will be receiving a little extra income as a result of his change of heart.
This is made possible by the massive buyout attached to his contract with the UO. If he terminates his contract before the end of his third-contract year, he will be forced to pay the UO $3.5 million.
The contract states he may either pro-rate the amount over the remainder of the contract or prepay in multiple lump sums. It is unclear whether or not the $3.5 million will actually come from Kelly or not, being that he is allowed to have his new employer provide funds for his buyout.
“Contractual buyout is between UO and Coach Kelly, so it is his obligation,” Athletic Director for Finance and Administration Eric Roedl said.@@http://uoregon.edu/findpeople/person/Eric*Roedl@@ “There have been instances where a buyout is paid for by the coach’s new employer, but that would have to be negotiated between Coach Kelly and his new employer.”
With 26 other programs shaking things up, 14 did so on their own terms by firing their head coach.@@checked@@ The other 12 were forced to start searching for candidates because of either another team swooping up their current head coach or retirement.@@checked@@
According to a USA Today report,@@link checked@@ programs around the country may eventually pay a total of $50 million related to contractual buyouts. The analysis says it takes into account the amounts programs possibly owe head and assistant coaches they have fired and damages schools are likely to pay on behalf of other NCAA coaches they picked up from other schools.
The 27 coaching changes made this year dwarfs the 16 that took place over the past two seasons combined in what might be the most expensive year for contract buyouts in NCAA history.