College footballSportsTexas A&M AggiesTexas A&M Aggies football Big buyouts for college coaches are the norm. If athletes start getting revenue, that could change by Sophia Chen November 18, 2023 written by Sophia Chen November 18, 2023 4 comments Bookmark 24 The prevailing trend in college sports is the substantial compensation given to coaches, but this could undergo a transformation if athletes begin to receive a share of the revenue generated. According to sports economist Andrew Zimbalist, the world of college athletics is distinct from typical business models, as it is driven by stakeholders and focuses on victories rather than profits. This unique approach is exemplified by Texas A&M’s decision to pay Jimbo Fischer more than $75 million not to coach its football team, a scenario mirrored by coaches at other top programs who also have substantial severance packages built into their contracts. Zimbalist and other experts suggest that these lucrative coaching contracts and golden parachutes will persist until the business model evolves to allocate a more significant portion of the revenue to the athletes themselves. The idea is that if, in the future, athletes are recognized as employees, it could lead to a reduction in the generous benefits and severance payments coaches currently enjoy. However, until that transformation occurs, athletic programs may continue to incur substantial losses. Recently, Jimbo Fisher was fired just over two years into his fully guaranteed 10-year, $95 million contract. Texas A&M plans to use donor funds for an initial payment of over $75 million owed to Fisher, with the rest to be covered by athletic department revenue through an installment plan. Currently, there are six active coaches with buyout clauses exceeding $50 million if they are terminated without cause. Leading the pack are Georgia’s Kirby Smart ($92.5 million), LSU’s Brian Kelly ($70 million), and Penn State’s James Franklin ($64.5 million). The length of a coach’s contract directly impacts the buyout amount, often extending up to 10 years, contributing to the eye-catching figures. While such buyout clauses provide security for coaches, they also make it challenging for institutions to make decisions about leadership transitions. The emotional attachment to long-term coaching staff is understandable, but it can place universities in precarious situations. The potential for change in this landscape lies in ongoing court cases and administrative decisions. If athletes prevail in legal proceedings and are classified as employees rather than “student-athletes,” it could deflate the buyout balloon. Two key cases, House vs. the NCAA and Johnson vs. the NCAA, seek back pay for thousands of athletes dating back to 2016 and push for employee status with associated pay and benefits. A ruling in favor of these athletes would likely shift the dynamics of contract negotiations. Richard Southall, director of the College Sport Research Institute at the University of South Carolina, emphasizes that as long as athletes are largely unpaid and schools can generate revenue from media rights, tickets, and sponsorships, coaches and their agents will have a significant advantage in contract talks. This stands in contrast to the NFL, where owners prioritize player compensation. Zimbalist and Southall contend that university leaders often defer to athletic directors in matters related to the athletic department, leading to financial decisions that may not prioritize fiscal prudence. University presidents may find it challenging to challenge the status quo, ultimately allowing coaches and their agents to dictate terms. In summary, the landscape of college sports, particularly coaching contracts and buyouts, may undergo transformation if athletes gain employee status and a share of the revenue. However, until such changes occur, the prevailing system of substantial coaching compensation and job security is likely to persist. Table of Contents Frequently Asked Questions (FAQs) about College AthleticsWhat is the main focus of this text?Why are college coaches receiving such large contracts and severance packages?What recent example is provided to illustrate the issue?How do the lengths of coaching contracts affect buyout amounts?What could potentially bring about a change in the current coaching contract landscape?How does the NFL differ from college sports in terms of coaching contracts?What challenges do university presidents face in addressing coaching contracts?More about College Athletics Frequently Asked Questions (FAQs) about College Athletics What is the main focus of this text? This text primarily discusses the impact of athlete compensation on college sports coaching contracts and the potential for change in the future. Why are college coaches receiving such large contracts and severance packages? College coaches receive substantial contracts and severance packages due to the unique business model of college athletics, where the emphasis is on victories rather than profits. This approach has led to substantial investments in coaching staff. What recent example is provided to illustrate the issue? The text mentions Jimbo Fisher’s situation, where he was paid over $75 million not to coach Texas A&M’s football team, despite being just two years into his 10-year, $95 million contract. How do the lengths of coaching contracts affect buyout amounts? The length of coaching contracts directly impacts buyout amounts, with some coaches having contracts extending up to 10 years, which contributes to the high buyout figures mentioned in the text. What could potentially bring about a change in the current coaching contract landscape? A potential shift in the landscape could occur if athletes are classified as employees rather than “student-athletes,” as argued in ongoing court cases. This change could impact coaching contract negotiations. How does the NFL differ from college sports in terms of coaching contracts? The NFL prioritizes player compensation, while in college sports, coaches and their agents often hold the advantage in contract negotiations, according to experts cited in the text. What challenges do university presidents face in addressing coaching contracts? University presidents often defer to athletic directors in matters related to athletic departments, potentially leading to financial decisions that may not prioritize fiscal prudence, as mentioned in the text. More about College Athletics College Athletics: Impact on Coaching Contracts Jimbo Fisher’s $75 Million Buyout Ongoing Court Cases Affecting College Athlete Compensation NFL Coaching Contracts vs. College Coaching Contracts Challenges for University Presidents in Athletic Matters You Might Be Interested In AP Top 25 Takeaways: Believe the hype! Coach Prime delivers thrilling upset in debut for Colorado LSU star Angel Reese has not been seen with the Tigers in the Cayman Islands AP Top 25 Takeaways: No. 1 Georgia vs. the field; season-changing injury for No. 4 Florida State Sweet 16 Showdown: Coaches’ Sons Hurley and Musselman to Face Off Robby Ashford Scores Three First-Half Touchdowns as Hugh Freeze Celebrates Winning Start as Auburn’s Head Coach with 59-14 Triumph March Madness Brings Dominant Gamecocks and Sweet 16 Parity Now that I have a title, I can begin writing my article. athlete compensationathlete rightscoaching contractsCollege footballCollege SportsNCAArevenue allocationsports economicsTexas A&M AggiesTexas A&M Aggies football Share 0 FacebookTwitterPinterestEmail Sophia Chen Follow Author Sophia Chen is a lifestyle journalist who covers the latest trends and developments in the world of fashion, beauty, and lifestyle. She enjoys exploring new fashion and beauty trends, and she is always on the lookout for new products and experiences to share with her readers. previous post Spend this holiday TV season with Paddington, Melissa McCarthy, Lori Loughlin and more next post Elevating Classic Thanksgiving Sides with Innovative Flavors You may also like Bookmark Teenager Najiah Knight Strives to Break Barriers in... December 27, 2023 Bookmark USC’s JuJu Watkins is poised to step in... December 27, 2023 Bookmark Houston Texans claim safety Kareem Jackson off waivers... December 27, 2023 Bookmark Pistons Aim to Avert Historic 27th Consecutive Defeat... December 27, 2023 Bookmark Pistons try to avoid 27th straight loss and... December 27, 2023 Bookmark Analysis: Christmas Had a Mixed Impact on Super... December 26, 2023 4 comments johnsmith123 November 18, 2023 - 1:56 pm wow, them college coaches makin’ bank, athletes not so much tho, need changes, y’know? Reply SportsFan99 November 18, 2023 - 11:58 pm big contracts, huge buyouts, crazy stuff, but what ’bout them players? unfair! Reply EconGeek22 November 19, 2023 - 4:35 am this article say college sports diff than NFL, coaches rulin’, athletes sufferin’, time 4 change? Reply TypoQueen November 19, 2023 - 6:19 am lotsa big words, no smilies, serious biz talk, gotta keep it formal, ya feel me? Reply Leave a Comment Cancel Reply Save my name, email, and website in this browser for the next time I comment. Δ