Hoke has a $2M Buyout after the season

Submitted by CincyBlue on

He has made $11.4M to date (which includes his 2014 salary).  If he is fired after the season, Michigan would have to pay him a $2M buyout.   I assume if they fired him right now they would be on the hook for the rest of his 2014 salary of $2.3M.   If they pulled the trigger right now, he would be owed what about $3.5M? 

http://www.mlive.com/wolverines/index.ssf/2014/09/numbers_having_invest…

 

Charlie Weis got fired this weekend.  He is still getting paid from ND to not coach there, which will total $20M when all said and done.   Kansas will pay him $7 not not coach there after this weekend.  

Bando Calrissian

September 29th, 2014 at 11:22 AM ^

This is an Athletic Department that is dumping millions of dollars into an indoor rowing practice facility.

They can come up with $2 million to do needed damage control for the head coach of the primary program that attracts said money for said non-revenue practice facility.

Tuebor

September 29th, 2014 at 11:23 AM ^

Does the decrease in attendance affect the decision making?  In my mind after this week he would have been gone Sunday morning. But I imagine that they are missing out on 500K worth of ticket revenue every game and will probably have a hard time getting donors to pony up the difference.  So is DB thinking he can't afford to fire Hoke until the buyout drops 1mil. 

Nothsa

September 29th, 2014 at 1:48 PM ^

I doubt gate receipts on Saturdays are a major part of the ticket revenues. Demand for next year's season tix is presumably cratering right now, but the financial cost of 60K failing to show next home game is probably just concessions sales drops.

LSA Aught One

September 29th, 2014 at 11:23 AM ^

The buyout drops from 3M to 2M on 1/1.  It's only a million dollars in the grand scheme of things, so the decision is not hinging on this fact.  The decision is going to be made based upon whether it's the best thing to do for the team.  Is it better to wait until the season is over rather than pull the trigger too soon and cause chaos amongst the current players?

Mr Miggle

September 29th, 2014 at 12:28 PM ^

I don't think what's best for the team is the driving factor anymore. It's what's best for the school. Having Hoke isn't just bad for the team now. It's bringing a lot of negative attention to the university. The situation isn't all that similar, but I'm reminded of Petrino at Arkansas. He didn't get canned because that would help the team.  

Shaqsquatch

September 29th, 2014 at 11:23 AM ^

is worth an extra million for a program making obscene amounts of money.

Not to mention there's a possible case for termination with cause which would have no buyout, or at the very least a negotiated lower buyout.

mjv

September 29th, 2014 at 11:56 AM ^

No, throwing good money after bad is keeping Hoke and giving him more budget for next year to hire another offensive coordinator and trying to fix a lost cause.  The good money is what would have been saved on the OC, the bad money is the money already spent on Hoke.  

Hoke needs to go, and the sooner he is, the sooner the good money can be spent on someone who might be a suitable leader for the football team.  So the buyout is worth it.

OSUMC Wolverine

September 29th, 2014 at 11:25 AM ^

Enjoy the $2,000,000.00----I bid you fairwell.  Maybe he can use some of that to bid up the prices on the $10 home field seats online for future games right now.  Or hire stand ins to come to the stadium to fill seats.

ish

September 29th, 2014 at 11:26 AM ^

his a**hole boss has made the athletic department enough money to pay it.  and they won't even have to.  a donor will step in and pay it.

Miles was right

September 29th, 2014 at 12:24 PM ^

This is what happens when we sell our souls....

Martin takes the Adidas contract over Nike, DUE TO MONEY... despite Nike always being great for us.....   so that incremental financial gain,  given to RR in form of what, WVa buyout, RR salary after fired, etc...

Now all the nonsense Brandon is doing, shaking down the M faithful.. is gonna go, what, to his GOLDEN PARACHUTE along with having to pay Hoke next year 

W

T

F

 

W

T

F

Miles was right

September 29th, 2014 at 12:25 PM ^

This is what happens when we sell our souls....

Martin takes the Adidas contract over Nike, DUE TO MONEY... despite Nike always being great for us.....   so that incremental financial gain,  given to RR in form of what, WVa buyout, RR salary after fired, etc...

Now all the nonsense Brandon is doing, shaking down the M faithful, all this "surplus"..... is gonna go, what, to his GOLDEN PARACHUTE along with having to pay Hoke next year 

W

T

F

 

W

T

F

Miles was right

September 29th, 2014 at 12:25 PM ^

This is what happens when we sell our souls....

Martin takes the Adidas contract over Nike, DUE TO MONEY... despite Nike always being great for us.....   so that incremental financial gain,  given to RR in form of what, WVa buyout, RR salary after fired, etc...

Now all the nonsense Brandon is doing, shaking down the M faithful, all this "surplus"..... is gonna go, what, to his GOLDEN PARACHUTE along with having to pay Hoke next year 

W

T

F

 

W

T

F

LSAClassOf2000

September 29th, 2014 at 12:22 PM ^

Brandon's current pay is outlined in his extension, the PDF of which is here - LINK

It outlines several differnet scenarios under which Brandon would be somehow compensated depending on the date and circumstances of termination, should he be terminated. Under "By University, Without Cause", for example, if it were to be before July 1st, 2016, it looks like he gets his remaining base salary per the contract plus whatever deferred compensation is remaining in the term. 

 

maizenblue92

September 29th, 2014 at 11:30 AM ^

It's $3 mil if he is fired before Jan 1. and $2 mil if he is fired after. Obviously the earlier he is fired the better (for coaching search, recruiting, etc.). And besides what are the odds the AD would sacrifice the future of the program to save $1 mil?

...Shit.

mjv

September 29th, 2014 at 12:14 PM ^

That is probably true that he might be subject to a dismissal with cause.  The issue is that dismissal with cause is almost never used unless the violation is so egregious that it is unquestionably with cause.  

Most employers want to have these issues taken care of quietly without a potentially ugly and/or expensive lawsuit.  So the employee is typically terminated without cause and signs a non-disclosure/non-defamation agreement with the employer.  And then receives the buyout amount. 

Remember the amount of flack Michigan took with the RR buyout?  They don't want that to happen again.  They want the transition to be as smooth as possible.  A pissed of Hoke might call all of the recruits and poison the water. He might alientate the roster.  There is a lot of bad that can be done.  Paying the buyout helps minimize that risk.

AFWolverine

September 29th, 2014 at 11:36 AM ^

I said this in a thread that got deleted. This is drop in the athletic department bucket. Dave Brandon himself knows this because he's turned it into a money-making business. Money should not be a factor in the firing.

BeatOSU52

September 29th, 2014 at 11:47 AM ^

Anyone else been checking Twitter all morning to see if any reporters tweet anything about the weekly press conference being switched around or that something is up?

feanor

September 29th, 2014 at 12:14 PM ^

The university is paying $400,000 to move a stinking tree for the business school expansion, with only an 80% chance of said tree's survival.

Hoke's fate is not hinging upon the buyout clause of his contract.

Perkis-Size Me

September 29th, 2014 at 11:59 AM ^

Pay the man, and get him out. The cost of keeping him here goes way beyond $2 million. It goes beyond anything monetary. You're talking about a guy who's very presence damages our program's brand and perception. That $2 million is nothing compared to the damage of retaining Hoke will cause.

maize-blue

September 29th, 2014 at 12:15 PM ^

Do it UM, just do it. The sooner, the better for all parties involved. Mattison and Nuss can probably get this team through the season and can they be any worse? It's time for Michigan to get out of it's own way and move full steam forward instead of always looking into the past.