Did we NEED to pay CS $5M/yr?

[Alouha27]

UT raised the bar for college coaches with our search. Not that we are paying the highest salary, but the ones who are getting the most have us to thank for it!

 

[Davharjac]

inflation..

There is a steep price to pay for big time college football.

 

[aowells]

He has a $4.75 mil buyout. Louisville made it clear they were willing to match Texas' $5mil. So, he could stay, not have to pay the buyout ($4.75 mil AFTER TAX if he paid it himself, or $2.0 mil AFTER TAX if Texas paid it for him) and collect $5.0mil to run Louisville or he could pay the buyout, take on the added responsibilities of the Texas program and take a minimum $4.0 mil hit (Texas pays the buyout and he takes the lower $3mil salary at Texas) with the hope Texas would boost his pay after a year to match what he knew he would get at Lousiville.
Where do I begin to explain the thought process of deciding between the two options?

Does consideration of the two options include incentives and long term earning potential? If you really want to get into financial analysis you'll need to project his earning potential into the future and figure out the NPV of those future earnings. I'm not interested enough to make all the necessary assumptions, but suffice it to say that Louisville would have been stretching to the extreme to match the $5M. It's not as though Louisville can cough up $8M next year if he does well.

I've made lateral moves and traded paycuts for incentives before in my career and always ended up way ahead. We're not talking about a union job here, we need to align incentives to performance and Charlie seems like a man willing to bet on himself.

 

[DizzG]

Good God the guy wasnt going to take a paycut to come to Texas or not gotten much of a raise

Its been reported the Louisville AD told Strong they would match ANY offer if this was about money

They would have EASILY matched 5 from reports. likely more than that as well

Strong is a highly respected coach who was coveted by Steve Patterson. He was already making basically over 4 in his current job. You damn sure weren't going to get him on the cheap for 3 million or 4

 

[The Tower]

BTW, Louisville tried to match our offer.

then, it would be a bidding war with Louisville. And they will know that they will lose.

 

[texasdobbs]

Yes... move on now.....

 

[DizzG]

then, it would be a bidding war with Louisville. And they will know that they will lose.

eventually sure, but it was made known to Strong they would match what Texas offered and they would not let him go for just money

I've seen it reported Jurich said they would have matched any offer to keep him...not like this was getting to 10 million

You still weren't going to hire the guy on the cheap

 

[PropositionJoe]

5 million is the new 2 million.

 

[whatthewhat]

1.) You really aren't logically thinking this through. We aren't offering a big number just to "validate the selection" rather we are offering what they are worth and what the program is worth. Do you really believe coaches would want to coach here knowing they would get a decrease in pay? That doesn't make any kinds of sense, and I don't care who the program is. Not only that, you act like UT is the only school to do this. Do you not know how contracts work? This is how it works in the real world too. We aren't wasting money. We aren't hurting for money. We aren't in a budget crunch, and yet even with the hiring of Strong we still saved millions. Did you not see some of the numbers that were being thrown around on this website just to land Saban?
2.) Your problem is that you're equating "throwing around money" to program success and not taking into account WHO was doing that. Dodds gave people raises just for showing up to work. Patterson is the opposite of this. Dodds "threw money around" for mediocre results because Dodds was driven by monetary success, not on the field results. The two aren't the same, but your arguments are (falsely) trying to make them the same.

3.) Why would you pay Strong 3-4 million when he makes more than that? You said before his raise...well the UT job wasn't open before Strong got his raise. So that argument doesn't hold water either.

You've got to look at what Strong is worth in comparison to other coaches, the program, the university, and how much we (UT) make. In addition, you have to look at the market and it's high.

Agree. Everything I wanted to say has mostly been said. I agree that pay should be reflective of performance, but you have to consider the revenue Texas football brings in and the role the HC plays in pursuing that outcome. I'd say the contract as stands isn't the least bit unreasonable considering the expectation.

 

[aowells]

5 million is the new 2 million.

10 million will be the new 5 million.

Unless they find a way to cap it, or start paying players, I think HC salaries could go as high as 20% of a school's football revenue, which for us would be $20M+

Which will still be a great deal for a coach who wins multiple NCs.

 

[Alouha27]

I started a new thread but I should have probably posted it in here. I just heard on the radio that Charlie Strong was the 7th highest paid coach in college football before we hired him. I feel kinda like an idiot now. I thought I knew college football pretty well, but I knew next to nothing about this cat.

Mods if you want you can delete my other thread.

 

[Randolph Duke]

I started a new thread but I should have probably posted it in here. I just heard on the radio that Charlie Strong was the 7th highest paid coach in college football before we hired him. I feel kinda like an idiot now. I thought I knew college football pretty well, but I knew next to nothing about this cat.
Mods if you want you can delete my other thread.

As of Sept 1, 2013

1 Nick Saban Alabama $5,650,000

2 Mack Brown Texas $5,400,000

3 Bob Stoops Oklahoma $4,600,000

4 Urban Meyer Ohio State $4,300,000

5 Les Miles LSU $4,300,000

6 Kirk Ferentz Iowa $3,900,000

7 Charlie Strong Louisville $3,700,000

8 Spurrier

9 Patterson

10 Gundy

http://www.coacheshotseat.com/SalariesContracts.htm

 

[DMV Horn]

There is a reason we pay someone $1.5 million a year to make these decisions and we don't leave it up to amateurs.
Strong had a $4.75 mil buyout. That is a personal obligation of his and not of the university hiring him. Even if that was paid by boosters, Strong still has to declare it as income and he would be personally liable for taxes on that (which at 40% fed and 6% KY state would be just over $2.0 mil).

Strong was making $3.75 mil at Louisville. His take home on that (at combined 46%) would have been just over $2 mil. So, you want him to give up a year's take home pay to take a job with far greater demands for at best a $250,000 increase in pay (he would break even on that proposition in 2022) or, at worse, for a 20% pay cut.

Good post!

 

[Alouha27]

As of Sept 1, 20131 Nick Saban Alabama $5,650,000

2 Mack Brown Texas $5,400,000

3 Bob Stoops Oklahoma $4,600,000

4 Urban Meyer Ohio State $4,300,000

5 Les Miles LSU $4,300,000

6 Kirk Ferentz Iowa $3,900,000

7 Charlie Strong Louisville $3,700,000

8 Spurrier

9 Patterson

10 Gundy

http://www.coacheshotseat.com/SalariesContracts.htm

Gotcha, thanks for the info. Stuff like that I don't usually follow and that's why it caught me off guard. Glad there are folks here that know these things.

 

[aowells]

As of Sept 1, 20131 Nick Saban Alabama $5,650,000

2 Mack Brown Texas $5,400,000

3 Bob Stoops Oklahoma $4,600,000

4 Urban Meyer Ohio State $4,300,000

5 Les Miles LSU $4,300,000

6 Kirk Ferentz Iowa $3,900,000

7 Charlie Strong Louisville $3,700,000

8 Spurrier

9 Patterson

10 Gundy

http://www.coacheshotseat.com/SalariesContracts.htm

This list from September 2013 almost makes sense. The top five all have NCs. Kirk Ferentz is a bit of an outlier.

Given the coaching contracts this year I think the September 2014 list will be a bit of a head scratcher.

 

[Alouha27]

This list from September 2013 almost makes sense. The top five all have NCs. Kirk Ferentz is a bit of an outlier.
Given the coaching contracts this year I think the September 2014 list will be a bit of a head scratcher.

Again everyone that got a raise should thank UT. And I guess Jimmy Sexton for his negotiating skills.

 

[aowells]

Again everyone that got a raise should thank UT. And I guess Jimmy Sexton for his negotiating skills.

Maybe that's good for us. We can win a championship the same way Reagan won the Cold War. Just force everyone to spend themselves into oblivion and be the last wallet standing...