Academic

Poverty At State U? Alabama Signs Nick Saban To $42.35 Million Coaching Contract

By Dan Filler

Formally, at least, the University of Alabama Crimson Tide football team is affiliated with - indeed, part of - the University of Alabama.  Times may be tough for state education budgets,  and with an 11% cut this year, Alabama is no exception.  But a wise institution will always support its top priorities.  

In this case, the Tide's priority is keeping Coach Nick Saban in Tuscaloosa.  Saban's hefty contract is structured to create (relatively small) incentives for him to stick around for its duration.  From the Birmingham News:

Under terms of the new nine-year deal, Saban stands to earn roughly $4.7 million per year should he stay at Alabama for the life of the contract.   Saban's original deal would have averaged $4.125 million over the remaining six years.   The most valuable aspect of Saban's extension is the formation of a $5 million "Contract Year Completion Benefit" clause that will pay Saban a lump sum at three different times if he is still coaching the Crimson Tide.  He would be due an additional $1.6 million in Jan. 2012, $1.7 million in Jan. 2015 and $1.7 million more in Jan. 2018. ...

The new deal also calls for parties to meet in Feb. 2015 to "determine marketplace trends" in regards to football coaches in the SEC and nationally. Per the contract, if Saban makes less than the "total guaranteed annual compensation" of three highest-paid SEC football coaches or less than that of the average of the five highest-paid NCAA football coaches, "UA agrees to increase employee's total guaranteed annual compensation to the higher of the two averages."

I've got nothing against the Tide or Saban.  Shoot - they're my team!  But there is something a little discomforting about doing the deal right now.  And on a separate note, isn't there something a little weird about paying a fellow extra moolah for doing what he just promised to do?

Full post as published by The Faculty Lounge on September 10, 2009 (boomark / email).