(06-12-2015 09:02 AM)VA49er Wrote: Basically, the coach deferred $100K raise so that money could be used elsewhere in the program. Noble move, but it's not like he gave up the money, he just deferred the money until 2018.
Well, technically that's not true.
He will forego the $100K for four years. In 2019, he will bump up to $821K but only if meets newly increased standards.
So that's four years of not earning $821K which is technically $400K less earnings for him. The bonus opportunity was also removed for the next four years, so technically he could have earned the $100K bonus on top of the one this year at least two more times (as the original contract was written). Plus, when the four year period ends the criteria to earn bonuses has been raised with aforementioned increased standards.
By the end of his current contract (before the change) he could have been earning as much as $1 million plus in the final year three years of the deal (had he met the benchmarks each year in succession) which has been taken off the table now. He will now be capped at $721K for the next four years.
So, he's likely giving up more than $400K if the team does well and as much $900,000 over the next four years (and even more than that if we extended the lost earnings through the life of the contract) though his contract was extended by two years, so it's possible he could earn some of that back but certainly only a fraction of that.
Keep in mind he's not going to get the initial $400K back in four years. He is actually going to have to meet the new bonus benchmark in 2019 just to get the next $100K increase in 2020. There is a compounding effect here that will significantly benefit the university assuming he doesn't steer the program into the ground during this time.