Contract Extension for Mike Anderson

[Libertarian Hog]

Mike Anderson who gets $2.55 million per year has been given a contract extension through the 2021-2022 season.  Arkansas just got through buying out Bielema's contract for almost $12 million.  This extension increases the cost if we ever need to buy out the contract of Anderson.  Do we really need to be all that worried about Mike Anderson leaving?  Mike Anderson is doing reasonably well.  But this contract extension seems more like the athletic department is taking care of itself than acting in the fan's interest.

[PharmacistHog]

Mike Anderson who gets $2.55 million per year has been given a contract extension through the 2021-2022 season.  Arkansas just got through buying out Bielema's contract for almost $12 million.  This extension increases the cost if we ever need to buy out the contract of Anderson.  Do we really need to be all that worried about Mike Anderson leaving?  Mike Anderson is doing reasonably well.  But this contract extension seems more like the athletic department is taking care of itself than acting in the fan's interest.

When a current contract nears its termination date, one of two things happen. The coach is given an extension or he is fired. Mike wasnt going to be fired this year regardless. If he misses the tournament this year and next that extension won't make a rat's ass. He'll be gone.

[Libertarian Hog]

If he misses the tournament this year and next that extension won't make a rat's ass. He'll be gone.

Well OK, I know he can be fired before his contract expires.  But in order to do that his contract has to be bought out.  The more time left on his contract the more it costs to buy it out.  Extending his contract for two years means it costs $5.10 million = (2 year)*($2.55 million/year) more to buy it out.  This $5.10 million probably comes out of the Razorback Foundation which is funded by the supporters.  The more money we spend on buyouts, the less we have available to hire a new coach.

[Sivad]

More proof of what we knew when we hired him - this nostalgia chase could never be fired, no matter his record.

[Mike Irwin]

Well OK, I know he can be fired before his contract expires.  But in order to do that his contract has to be bought out.  The more time left on his contract the more it costs to buy it out.  Extending his contract for two years means it costs $5.10 million = (2 year)*($2.55 million/year) more to buy it out.  This $5.10 million probably comes out of the Razorback Foundation which is funded by the supporters.  The more money we spend on buyouts, the less we have available to hire a new coach.

I'm not an expert in reading contracts but I have been told by people in the athletic department that the buyout is a flat one million dollars at any point for the duration of the contract. In other words they could fire Anderson tomorrow and the buyout would be the same as it would be in 2019, 2020, 2021, or 2022.

I have run this by several others in the media who cover this basketball program and they all say the above description is accurate.

However you did mention the Foundation and we know that a part of Bielema's buyout was done privately. (until the attorney general ruled that it should be made public)

I suppose it's possible that Anderson would get additional money from the Foundation but there's no way to find that out at this point.

[hobhog]

I'm not an expert in reading contracts but I have been told by people in the athletic department that the buyout is a flat one million dollars at any point for the duration of the contract. In other words they could fire Anderson tomorrow and the buyout would be the same as it would be in 2019, 2020, 2021, or 2022.

I have run this by several others in the media who cover this basketball program and they all say the above description is accurate.

However you did mention the Foundation and we know that a part of Bielema's buyout was done privately. (until the attorney general ruled that it should be made public)

I suppose it's possible that Anderson would get additional money from the Foundation but there's no way to find that out at this point.

If that's the case I expect new AD has an easy choice if no March Madness this year. Chris Beard isn't going to be available after this year. And no one could blame him for making that move.

[Libertarian Hog]

Thanks for the information.

[elkhog]

More proof of what we knew when we hired him - this nostalgia chase could never be fired, no matter his record.

^This^