So . . . if I understand the buyout correctly, the University of Iowa's Athletic Department would owe Kirk Ferentz an additional $42M if he was terminated without cause at the end of this season. That written, the UI AD would not have to cut him a $42M check. The UI AD would continue to pay him approximately $500K/month through the end of the 2029 season. Make no mistake, paying $6M/year to someone who isn't coaching or doing anything for the UI AD isn't exactly "chump change" and it takes $6M away from non-revenue sports that could really use that money (upgrades to Banks Field!!!!)
With the caveat that I'm not yet in the "Iowa Needs to Terminate Kirk Ferentz" camp, I find it eminently fair to question whether the buy-out financially "forecloses" a decision to terminate Ferentz. Given that the new TV deal kicks in mid-2023 and B1G schools are looking at a significant increase in yearly conference revenues, it seems to follow that there would sufficient financial resources to "eat" a $6M/year liability on the balance sheet and that, before that new money is "spoken for," perhaps the end of the season would be a perfect time for that termination to occur.
From what I understand, Kirk's contract pays him yearly as follows:
$500,000 - base salary
$5,500,000 - supplemental pay
$1,000,000 - longevity bonus
That's $7M per year. If he is terminated, he is entitled to the base salary + supplemental pay through 2029. That's 7 years at $6M per year = $42M.
The average D1 college head coach probably makes in the $3M-$4M/year range (quick Google search; not warranting the accuracy of that number).
So:
Current yearly pay to head football coach: $7M/year
Terminate Kirk Ferentz ($6M payout) and hire a different head football coach ($3M - $4M): $9M - $10M/year
Assuming a new hire in the $3-$4M range, the UI AD is likely looking at taking a $2M - $3M hit in the budget through 2029 for head football coaching salary. Again, not chump change but eminently manageable given the significant bump in revenue anticipated via the new TV contract.
Thus, if a tough decision must be made to part ways with someone who has been a phenomenal ambassador for the Iowa football program and whose teams' achievements are as good as if not a tad better than Hayden Fry's teams, it would appear that the UI AD wouldn't suffer too greatly from a financial perspective.
Take it FWIW.
With the caveat that I'm not yet in the "Iowa Needs to Terminate Kirk Ferentz" camp, I find it eminently fair to question whether the buy-out financially "forecloses" a decision to terminate Ferentz. Given that the new TV deal kicks in mid-2023 and B1G schools are looking at a significant increase in yearly conference revenues, it seems to follow that there would sufficient financial resources to "eat" a $6M/year liability on the balance sheet and that, before that new money is "spoken for," perhaps the end of the season would be a perfect time for that termination to occur.
From what I understand, Kirk's contract pays him yearly as follows:
$500,000 - base salary
$5,500,000 - supplemental pay
$1,000,000 - longevity bonus
That's $7M per year. If he is terminated, he is entitled to the base salary + supplemental pay through 2029. That's 7 years at $6M per year = $42M.
The average D1 college head coach probably makes in the $3M-$4M/year range (quick Google search; not warranting the accuracy of that number).
So:
Current yearly pay to head football coach: $7M/year
Terminate Kirk Ferentz ($6M payout) and hire a different head football coach ($3M - $4M): $9M - $10M/year
Assuming a new hire in the $3-$4M range, the UI AD is likely looking at taking a $2M - $3M hit in the budget through 2029 for head football coaching salary. Again, not chump change but eminently manageable given the significant bump in revenue anticipated via the new TV contract.
Thus, if a tough decision must be made to part ways with someone who has been a phenomenal ambassador for the Iowa football program and whose teams' achievements are as good as if not a tad better than Hayden Fry's teams, it would appear that the UI AD wouldn't suffer too greatly from a financial perspective.
Take it FWIW.
