Buyout required if Harbaugh comes?

Submitted by lastofthedogmen on

I've been reading some blogs/tweets/opinions about Harbaugh coming to UM that say if he leaves the 49ers at the end of this year, he'd have to buy out his contract.  I've also read a couple (eg this one on NinerNation) that say if he resigns and goes to a college, no buyout is required.  I'm not a lawyer, nor do I play one on TV.  Anyone have knowledge of the terms of his contract, or the law regarding resignation penalties?  Info much appreciated...

Ray

December 20th, 2014 at 5:37 PM ^

I was told in another thread exchange that the "buyout" is actually a form of liquidated damages, and would only apply to another NFL team. Going to a college team would not result in a damage to SF per se because they're not in competition with them. Will stand corrected if that was a bum steer, but that's the understanding I got.

bartholomeo

December 20th, 2014 at 8:19 PM ^

"Going to a college team would not result in a damage to SF per se because they're not in competition with them."

...is probably one of the more fascinating—and potentially far-reaching—aspects of this coaching search situation.  As college sports have made the subtle shift from "student athlete" to "employee"(and not just in semantics but with some real legal basis too), the competition between the NFL and college for resources (i.e., for talent in both brains & brawn as well as fan dollars) will become much more intense and potentially quite nasty.

A Harbaugh defection to the college ranks might very well be a galvanizing moment for the NFL when they realize the potential threat of a "professionalized" college football.  In fact, I would dare say that the NFL brass already recognize this threat and that is why the NFL presstitutes are following their marching orders and so aggressively pushing the "no way Harbaugh goes back to college" propaganda.

I understand that many people (that is to say, casual fans) think that college football players shoud be compensated some money but...if that line is crossed...then do understand that it is "game on" and before long any & all of the old rules will be out the window.  

Seriously, what does the NFL offer in a head-to-head battle?

  • The college game already has the hearts & emotions of many fans (with it's grip on alumni & even local territorial pride for the  non-college educated).  Pro teams will pack up and leave town for a better deal but what college has ever engaged in that act of betrayal? 
  • Money?  If Harbaugh receives the rumored contract then he is right on par with NFL coaches.  Would player compensation be far behind (maybe not in 2014 dollars but in a big picture sense)?

And if it does get nasty, who's to say that the old boundaries between college & pro will be respected? 

  • Why wouldn't Michigan & MSU agree play some Sunday afternoon games just to crater the gate receipts (as well as TV ratings) of the Lions?
  • Or maybe the NCAA decides that "graduate" students should retain eligibity indefinitely so that the can continue their (paid) studies.  What Michigan fan wouldn't love to be bragging about the achievements of the now tenured Dr. Tom Brady?

Interesting times indeed...

iamtjeff

December 20th, 2014 at 6:14 PM ^

I would assume there will be some form of damages for college and pros. A breach is a breach, although the damages for each may be different. The NFL vs. College distinction likely comes into play when discussing who he can talk to at this time without that organization "tampering." Michigan can talk to JH without tampering, other NFL teams cannot. 

CobraKai FatGuy

December 20th, 2014 at 5:33 PM ^

Wherever he goes, if he walks away from his contract, he's in breach and would be on the hook for the 5 mil or whatever it is. Obviously if they fire him they owe him for the last year

Moonlight Graham

December 20th, 2014 at 5:33 PM ^

and throw this one out there rather than start another thread: 

What is Hoke's coaching staff doing right now? There have been lengthy discussions today on Nuss and GMatt so it sounds like they're still "around," but are they getting paid? Are they still in their offices and able to "check in" on the current players? (I recall a few weeks ago they were pulled off the recruiting trail.) Just wondering how all that is working. Is Hackett telling them to hold tight and they'll be re-interviewed by the new coach? 

julesh

December 20th, 2014 at 5:40 PM ^

My understanding is that their contracts are being honored, payment-wise, but they were essentially told that they have to reapply for their jobs when the new coach comes. I also saw, somewhere, that Mattison cleared out his office before Hoke was officially fired. No clue how accurate any of that is.

Optimism Attache

December 20th, 2014 at 6:36 PM ^

Yeah well the contracts have to be honored regardless, unless they have some weird exception for a HC firing. I could certainly see Hackett strongly recommending that the new HC think about keeping at least one of the coordinators because of how much money they're in, but you gotta let the dude hire his own guys when it comes down to it.

PeterKlima

December 20th, 2014 at 5:53 PM ^

As a lawyer, i wanted to say it simply depends on the language of the contract. None of these high profile contracts are form or "boilerplate" only. They are all custom. Talk to someone who has seen this particular contract.

991GT3

December 20th, 2014 at 7:06 PM ^

However, I would wager that there is a buyout clause if he prematurely terminating his contract regardless of where he goes. I can't believe the 49'ers would not protect themselves should he opt to go back to college.

That said, it is possible his agent insisted on that clause but very unlikely.

PeterKlima

December 20th, 2014 at 7:16 PM ^

Meh. The NFL arrogance leads me to believe that they may not have contemplated going back to college. That said, in employment contracts it is usually a non-compete type buyout. JH wouldn't have to pay if he just retired or got sick. He may only need to pay if he took a competing job (that is where the justification for charging any penalty for not working). Who knows what competition is defined as in this contract. Tons of different ways to do it and NO IDEA what the contract actually says. Might as well speculate wildly, like we do about everything here :)



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trustBlue

December 21st, 2014 at 4:11 AM ^

As another lawyer, this would have been my first instinct as well.  Normally these sort of damages clauses would take effect as part of a non-compete -  i.e. its not likely to kick in if he simply retired or if he suddenly decided to follow his dream of becoming chef or if he took a job coaching his son's rec league football team.  In that same vein, Michigan does not compete with the 49ers, so I could see it simply being limited to other NFL teams.  

But FTW, a number of college coaches have or had similar buyout clauses that take effect in the event that the coach leaves for the NFL - so the reverse could very well be true in this case:

http://www.nfl.com/news/story/0ap2000000299912/article/will-buyout-clau…

http://www.statecollege.com/news/local-news/penn-state-football-new-obr…

superstringer

December 20th, 2014 at 6:30 PM ^

well... no contract can be instantly terminable mid-term by just one party without consequence. that would make it "illusory" and unenforceable. but to avoid this, there is probably language to create some obligation on jim (eg he had to coach at least one year, or a real small buyout, etc). so ultimately, follow the age-old rule that lawyers must flow: WHEN IN DOUBT, READ THE CONTRACT.




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superstringer

December 21st, 2014 at 12:08 AM ^

courts will never force someone to work. the best an employer can get is enforcing a non-compete -- barring employee from working for a competitor (if a contract has sucha. clause). even then the non-compete has to be reasonable to time and place. if an employee has a binding contract and walks away, it could still be a breach and the emoyer would get whatever damages are provided in the contract or in the law. but i am not an employment lawyer, every state has laws about what an employer can get in those circumstances. my general sense is that the law lets people change jobs pretty easily. forced labor is not the american way.




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m1817

December 20th, 2014 at 6:28 PM ^

Harbaugh is holding all the cards.

It is widely reported that Harbaugh and 49er's management do not get along.  If they fire him they own him $5 million.  If they don't fire him, they have to keep him and pay him $5 million. 

If they try to trade him to another NFL team, he has the right to approve the trade.  The 49ers will demand something in return from the team they trade him to, but he is still only obigated to coach for that team in 2015.  After 2015, he becomes a free agent, so his trade value is diminished.  If the 49ers can't trade him, they are back to keeping a coach they don't want or firing him and paying him $5 million.

Or the 49ers can release him from the final year of his contract and allow him to take the Michigan offer and everyone will be happy.

Danwillhor

December 21st, 2014 at 5:31 AM ^

before the trade can be finalized a new contract has to be agreed to & either signed our turned into the NFL office for future league enforcement. So, he essentially says where he goes in a trade. If Atlanta is offering three 1st rounders but Jim doesn't want to go to Atlanta, tough titty, SF. If Carolina offers a scout team punter with a 7th rounder & it's the only offer of those proposed Jim would consider, that's what SF gets. EVEN STILL, once Jim is informed he can merely not sign a new deal making it void should he not really want it. Finally, let me repeat this: THERE IS ZERO PENALTY OF ANY KIND FOR JIM IF HE RESIGNS TO TAKE AN NCAA JOB. The only "UM paying SF the buyout" comes from the hypothetical offer that we'd give SF $5MM to encourage them to simply fire him instead of shop him. That said, Jim can walk out the door for AA a week ago. It's why I still question his intentions unless he's finishing this year merely out of nobility & honor (because it's known that SF is going to dump him anyway so you might as well call this his last contract year). I think he's just not a quitter. If they don't fire him or work something out with UM, they'll try to trade him. If Jim isn't our HC by Jan 2nd, his heart isn't in AA and he's not our HC. I think we'll know sooner as CFB can't keep its mouth shut and things like Ross getting into Miami talks, etc. If not verbal, we'll know either way by "Dead Tuesday", IMO.