UT's policy on buyouts?

[H-town Horn]

So the buyout for Chad Morris is $5.1M. If that is the only sticking point, why would Texas not pull the trigger on this?

Money does you no good unless you spend it, correct? We are one of the very few athletic departments that operates in the black (and we operate waaayyy in the black). In all seriousness, what is $5.1M to a bunch of billionaire Texas alums?

And I'm only using Chad Morris as an example. He may or may not be "the guy". But my point is, why in the world would money get in the way of Texas, of all programs/alum bases, hiring who they want (or rather who Coach Strong wants)?

 

[aowells]

I agree to a point. But money can't always be the answer to everything. If we overpay on every contract, we'll have largely negated our financial advantage.

Yes we need to spend money, but let's not just light it on fire. A $5M buyout for an OC isn't lighting it on fire, but it's pretty steep.

 

[Randolph Duke]

So the buyout for Chad Morris is $5.1M. If that is the only sticking point, why would Texas not pull the trigger on this?
Money does you no good unless you spend it, correct? We are one of the very few athletic departments that operates in the black (and we operate waaayyy in the black). In all seriousness, what is $5.1M to a bunch of billionaire Texas alums?

And I'm only using Chad Morris as an example. He may or may not be "the guy". But my point is, why in the world would money get in the way of Texas, of all programs/alum bases, hiring who they want (or rather who Coach Strong wants)?

A buy-out is a contractual obligation of the coach. If Texas were to pay the buy-out, the cost would be $8.5mil because that would be the amount Texas would have to give Morris who would then declare the amount as income, pay taxes on that amount and then have $5.1 mil left to pay Clemson. If he stays for two years at $1mil/per and then leaves, you pay as much for your OC as you do for your HC. Yes, a booster could pay the money instead of the school, but you would have to assume he would then reduce any other contribution by a similar amount and the money would come out of the school's pocket indirectly. Does it really make sense to pay your coordinator $5mil/yr?

 

[H-town Horn]

Yeah I understand it's a lot of money, and I understand that money doesn't solve all problems and that there are other issues at play, not the least of which are egos.

But we are talking Texas Football, right?

Again, I'm not necessarily arguing that we should pay that much for Chad Morris, or even that he is necessarily the best guy for the job. On the other hand, if Charlie Strong has walked into Patterson's office and said "Chad Morris is the guy I'd like to hire and Chad said that he would like to come here, however he has a $5.1M buyout...", then given the type of revenues we enjoy, as well as all the intangibles, I don't understand why we wouldn't pull the trigger in that case.

Of course it is not my money. But again, what is the use of making all that money if you're not going to spend it on the football program?

Again these are all hypothetical and I have no idea what's going on behind the scenes. But for all we hear about the Texas revenues, $5.1M seems like a drop in the bucket if it means landing the guy that the new regime thinks can get us over the top.

Shrug. Again not my money.

 

[Topstarr]

Just do not pay the monies....real simple. Go for another OC like Riley.

 

[TheContractor]

A buy-out is a contractual obligation of the coach. If Texas were to pay the buy-out, the cost would be $8.5mil because that would be the amount Texas would have to give Morris who would then declare the amount as income, pay taxes on that amount and then have $5.1 mil left to pay Clemson. If he stays for two years at $1mil/per and then leaves, you pay as much for your OC as you do for your HC. Yes, a booster could pay the money instead of the school, but you would have to assume he would then reduce any other contribution by a similar amount and the money would come out of the school's pocket indirectly. Does it really make sense to pay your coordinator $5mil/yr?

its not our $ so its easy to say but agree $ cant be the issue. We can always have a buyout for Morris ourselves. So if he leaves we can get some $ back, maybe same $5.1 million buyout.