Bielema's buyout less than 5.9M$ per DemoGazz

[Razorbackers]

New math....

[Hog-Corleone]

No lump sum payments, he must make a good faith effort to find employment elsewhere and once he does, the money goes away. No Charlie Weis garbage where he is double dipping while coaching another Div 1 school. Etc.

Earlier in the contract the monthly compensation is higher than it will be late in the contract. 

It doesn't go away, it just gets reduced by any salary he gets from future employment, so it could go away, if he gets more than about $2.00MM per year.

[Großer Kriegschwein]

It doesn't go away, it just gets reduced by any salary he gets from future employment, so it could go away, if he gets more than about $2.00MM per year.

Yep.

[factchecker]

Lots of coaches make good faith efforts to find employment, and don't, haha.

[Großer Kriegschwein]

Lots of coaches make good faith efforts to find employment, and don't, haha.

Yep.

I'd like Nick Saban to make a good faith effort to get hired at Arkansas.

T'would be cool.

[Rayzback]

Left @ 2 pages, came back to 9. Now 10, can't keep up!

[Simple Swineman]

that was my impression as well.  I doubt CBBs lawyer is going to just let 5-10 million sit on the table if he can figure out a way to get it.

They aren't leaving $10 million on the table. He's already been paid that. To put it simply, the $15.4 million is basically just the amount he is guaranteed to receive over the life of his contract.

His salary was $3.25 million in 2015, $3.35 million in 2016, and $3.45 million in 2017. That's a total of $10.05 million he will have been paid. Based on the termination calculation he will receive $5.9 million if we fire him after the Missouri game.

He's getting his guaranteed $15.4 million just as the contract states. There is no money left on the table.

[ricepig]

Left @ 2 pages, came back to 9. Now 10, can't keep up!

It's the same ole shitz, just rehashed.

[Großer Kriegschwein]

It's the same ole shitz, just rehashed.

Yep.

How many times can we doo the math and explain it a different way for different people?

Bottom line is whether we can handle going farther down this rabbit hole until we find the bottom and chill there with Texas until this goes from a 2-3 year fix to a 7-8 year fix just like the Longhorns did with Brown.

[Hog-Corleone]

Yep.

Mark it down, October 12, 2017 at 4:02:52 PM...  Two People On Hogville Agreed On Something.  Holy Blizzards Batman, I think it's freezing over!

[Großer Kriegschwein]

Mark it down, October 12, 2017 at 4:02:52 PM...  Two People On Hogville Agreed On Something.  Holy Blizzards Batman, I think it's freezing over!

Lol.

Me and Rice agree more often than not. FWIW.

Now getting Delta and Majestic to agree?

[Hogwild]

Is there a lawyer in the house that works in contracts that would bother clarifying? 

SaturdayDownSouth had an article saying the lawyers that have reviewd the contract and aren't sure the amount of the buyout. 

[Tusks]

cwayzier than a wabid weasel

[theFlyingHog]

SaturdayDownSouth had an article saying the lawyers that have reviewd the contract and aren't sure the amount of the buyout.

Then they really need new counsel.

[Hog-Corleone]

SaturdayDownSouth had an article saying the lawyers that have reviewd the contract and aren't sure the amount of the buyout. 

Can you give me the attorneys names, so i can put them on my "Do Not Call" list.

[factchecker]

http://footballscoop.com/news/explaining-bret-bielemas-buyout/

[woodrow hog call]

They aren't leaving $10 million on the table. He's already been paid that. To put it simply, the $15.4 million is basically just the amount he is guaranteed to receive over the life of his contract.

His salary was $3.25 million in 2015, $3.35 million in 2016, and $3.45 million in 2017. That's a total of $10.05 million he will have been paid. Based on the termination calculation he will receive $5.9 million if we fire him after the Missouri game.

He's getting his guaranteed $15.4 million just as the contract states. There is no money left on the table.

Right, the way I see it, if he had of been fired the day after he signed the contract, then the buyout would have been $15.4 mil.
Now it's $15.4 mil, less what he has already received.

[woodrow hog call]

This gif is going to get me fired one day, I can't keep telling people I sneezed and blew pop all over my screen, then broke out laughing uncontrollably.

[PorkSoda]

Right, the way I see it, if he had of been fired the day after he signed the contract, then the buyout would have been $15.4 mil.
Now it's $15.4 mil, less what he has already received.

except if he was paid 3.2 million each of the 8 years of his contract, the would be paid 25.6 million.  that's not counting the raise.

It all boils down to how they interpret the "term"

for the sake of the program, I hope it ends up being the lower amount.

and thank god we didn't have a contract like sumlins.  I think he gets like 15 mill on the day he is fired or something to that effect.  its crazy.

[Simple Swineman]

Right, the way I see it, if he had of been fired the day after he signed the contract, then the buyout would have been $15.4 mil.
Now it's $15.4 mil, less what he has already received.

Correct.

The "buyout" numbers aren't really buyout numbers, it's just his guaranteed pay as of January 1 on any given year. Just using simple math you can see where the numbers in the chart comes from.

The contract states that coach has a $250,000 retention bonus paid each year. His annual salary is...
2020 - $3.75 million
2019 - $3.65
2018 - $3.55
2017 - $3.45

This is where his buyout numbers come from...
2020 - $4 million ($3.75 salary + $250,000 bonus)
2019 - $7.9 million ($3.75 +  $3.65 + $500,000 bonus)
2018 - $11.7 million ($3.75 +  $3.65 + + $3.55 + $750,000 bonus)
2017 - $15.4 million ($3.75 +  $3.65 + + $3.55 + $3.45 + $1,000,000 bonus)

There was no accident or smokescreen in the contract. All the buyout clause does is pay him his guaranteed salary. It's really mind boggling how people got so confused over this and how the media/fans totally overlooked it. All the calculations do is prorate out the remainder of the contract.

[hawgon]

except if he was paid 3.2 million each of the 8 years of his contract, the would be paid 25.6 million.  that's not counting the raise.

It all boils down to how they interpret the "term"

for the sake of the program, I hope it ends up being the lower amount.

and thank god we didn't have a contract like sumlins.  I think he gets like 15 mill on the day he is fired or something to that effect.  its crazy.

The term is easily defined.  It is from the date the contract was signed in 2012 to 2020.

[BearsBisonsBoars]

Yes, especially if he considers keeping this coach.  Either way...don't want Long around to select the next coach......not his best attribute.

If he forms a search committee and stays out of the way, I'm good with him staying now that the contract is revealed to be reasonable.

He's done a pretty good job with the admin stuff.

[Martygit]

Is there a lawyer in the house that works in contracts that would bother clarifying? 

I'm a lawyer and have stayed at a Holiday Inn Express - I've drafted, reviewed, revised and litigated contracts - this seems really simple to me - the $15.4 number is a number that the University would have owed him if they had fired him on day one or any time during that month - after that, up until 1/1/18 you take the $15.4, divide it by the number of months of the contract (which is 97 and remains static throughout the term of the contract) - that gives you a monthly number which you then multiply by the number of months remaining on the term of the contract.  So you divide the $15.4 by 97 which reveals a monthly figure of $158,762+some change - you then multiply that number by the number of months left in the term of the contract which, as I understand it, terminates on 12/31/20 - including all of October, that means 39 months as of today - so, if you fire him today, $158,762 x 39 = $6.1-6.2. If you wait until after the season is over and fire him during December but before 1/1/18 you owe him $158,762 x 36 (you pro-rate the month of December based on what day you fire him) which reveals a buyout of about $5.7.

If you wait until 1/1/18 the numerator (the $15.4 figure) goes down to $11.7 according to the chart I saw.  So instead of dividing $15.4 by the 97 months in the term of the contract, you would divide $11.7 by that 97 months to give you a monthly buyout figure.  $11.7 divided by 97 = $120,618.  Then you multiply that by the number of months remaining in the term of the contract which, as of 1/1/18 is 36 so, $120,618 x 36 = $4.342+.

And, the University gets to pay that off monthly with some offsets in the event he finds other work.

I'll send you a bill

[hawgon]

Exactly.  It looks like a good contract with little to no ambiguity as far as I can tell.  It is simple as simple can be.

[Großer Kriegschwein]

SaturdayDownSouth had an article saying the lawyers that have reviewd the contract and aren't sure the amount of the buyout.

Them reporting it as $15.4 million for the last two years has nothing to do with their confusion. Lol.

[HawgTide]

I'm a lawyer and have stayed at a Holiday Inn Express - I've drafted, reviewed, revised and litigated contracts - this seems really simple to me - the $15.4 number is a number that the University would have owed him if they had fired him on day one or any time during that month - after that, up until 1/1/18 you take the $15.4, divide it by the number of months of the contract (which is 97 and remains static throughout the term of the contract) - that gives you a monthly number which you then multiply by the number of months remaining on the term of the contract.  So you divide the $15.4 by 97 which reveals a monthly figure of $158,762+some change - you then multiply that number by the number of months left in the term of the contract which, as I understand it, terminates on 12/31/20 - including all of October, that means 39 months as of today - so, if you fire him today, $158,762 x 39 = $6.1-6.2. If you wait until after the season is over and fire him during December but before 1/1/18 you owe him $158,762 x 36 (you pro-rate the month of December based on what day you fire him) which reveals a buyout of about $5.7.

If you wait until 1/1/18 the numerator (the $15.4 figure) goes down to $11.7 according to the chart I saw.  So instead of dividing $15.4 by the 97 months in the term of the contract, you would divide $11.7 by that 97 months to give you a monthly buyout figure.  $11.7 divided by 97 = $120,618.  Then you multiply that by the number of months remaining in the term of the contract which, as of 1/1/18 is 36 so, $120,618 x 36 = $4.342+.

And, the University gets to pay that off monthly with some offsets in the event he finds other work.

I'll send you a bill


Thanks for the free legal counsel

[factchecker]

Them reporting it as $15.4 million for the last two years has nothing to do with their confusion. Lol.

It's Saturday Down South...... Hogville is a better source than them.

[hoglady]

It was on a pay board last week, probably were they got it.

Probably so.

[hoglady]

SaturdayDownSouth had an article saying the lawyers that have reviewd the contract and aren't sure the amount of the buyout. 

Doesn't surprise me.
I always thought it'd be clear as mud / open to various interpretations.

[Snortingred1]

He isn't hiding behind the buyout. He leaked this to take pressure off himself and put it on Bert. Long doesn't look like an idiot who signed a 15 mil buyout. Instead he looks really smart and made a great business decision.

Long is distancing himself from fat boy.

He didn't leak anything.  The information has always been available to the public.  Since we first hired Bielema, you could find the contract available.

[Martygit]

SaturdayDownSouth had an article saying the lawyers that have reviewd the contract and aren't sure the amount of the buyout.

That's exactly what BB's lawyers would say when they know exactly what it says but don't want to admit it to their client.  Lawyers get paid to argue on behalf of their client, not to admit something that's not in their client's best interest.

[MB Hog]

Correct.

The "buyout" numbers aren't really buyout numbers, it's just his guaranteed pay as of January 1 on any given year. Just using simple math you can see where the numbers in the chart comes from.

The contract states that coach has a $250,000 retention bonus paid each year. His annual salary is...
2020 - $3.75 million
2019 - $3.65
2018 - $3.55
2017 - $3.45

This is where his buyout numbers come from...
2020 - $4 million ($3.75 salary + $250,000 bonus)
2019 - $7.9 million ($3.75 +  $3.65 + $500,000 bonus)
2018 - $11.7 million ($3.75 +  $3.65 + + $3.55 + $750,000 bonus)
2017 - $15.4 million ($3.75 +  $3.65 + + $3.55 + $3.45 + $1,000,000 bonus)

There was no accident or smokescreen in the contract. All the buyout clause does is pay him his guaranteed salary. It's really mind boggling how people got so confused over this and how the media/fans totally overlooked it. All the calculations do is prorate out the remainder of the contract.

Ahh - this helps a lot.  So the buyout numerator is based on what remains on CBB's contract for the final four years... then three years, two years, and one year.  He doesn't get ALL of the money from the contract, but a smaller percentage of it based on the numerator and the formula described in the contract.  That's why it is a buyout... otherwise, they would just be paying the entire remaining salary even after he was let go, and that wouldn't make sense.  For example, if he was fired at the beginning of January 2020, the buyout number is $4 million because that is what his remaining compensation would be on the contract, but they wouldn't pay the entire $4 million because he wouldn't actually be working.  Instead, he would get just under $500K based on the buyout formula as his compensation for getting let go before the end of the contract.  Got it!

[OneTuskOverTheLine™]

UUUUGGE if true!!

Did Long just go from the dumbest man to the smartest man?

UUUUUUUUUUUUUEEESSSSSSS....

[phadedhawg]

maybe having a "nerd", "pencil pusher", "carpetbagger" as an AD, has some upsides after all....

[Tarheelhawg]

I'm a lawyer and have stayed at a Holiday Inn Express - I've drafted, reviewed, revised and litigated contracts - this seems really simple to me - the $15.4 number is a number that the University would have owed him if they had fired him on day one or any time during that month - after that, up until 1/1/18 you take the $15.4, divide it by the number of months of the contract (which is 97 and remains static throughout the term of the contract) - that gives you a monthly number which you then multiply by the number of months remaining on the term of the contract.  So you divide the $15.4 by 97 which reveals a monthly figure of $158,762+some change - you then multiply that number by the number of months left in the term of the contract which, as I understand it, terminates on 12/31/20 - including all of October, that means 39 months as of today - so, if you fire him today, $158,762 x 39 = $6.1-6.2. If you wait until after the season is over and fire him during December but before 1/1/18 you owe him $158,762 x 36 (you pro-rate the month of December based on what day you fire him) which reveals a buyout of about $5.7.

If you wait until 1/1/18 the numerator (the $15.4 figure) goes down to $11.7 according to the chart I saw.  So instead of dividing $15.4 by the 97 months in the term of the contract, you would divide $11.7 by that 97 months to give you a monthly buyout figure.  $11.7 divided by 97 = $120,618.  Then you multiply that by the number of months remaining in the term of the contract which, as of 1/1/18 is 36 so, $120,618 x 36 = $4.342+.

And, the University gets to pay that off monthly with some offsets in the event he finds other work.

I'll send you a bill

I just did this calculation and came up with 4,342,268.04 if he is not fired until Jan 1, 2018 before I looked at your post. My first degree was in Accounting. Thanks for your accuracy!

[Martygit]

I just did this calculation and came up with 4,342,268.04 if he is not fired until Jan 1, 2018 before I looked at your post. My first degree was in Accounting. Thanks for your accuracy!

Us lawyers and accountants have to stick together - thanks for confirming  (and, I don't know where the MB Hog numbers are coming from)

[Karma]

This is actually an important thread that has been turned into something irrelevant.

[Tarheelhawg]

Us lawyers and accountants have to stick together - thanks for confirming  (and, I don't know where the MB Hog numbers are coming from)

Funny , I really enjoyed that calculation .  I was laughing when I saw your post.  I have got your back !

[East TN HAWG]

So instead firing him now, looks like we should place him on administrative leave until Jan.  Then let him go.  Saves us almost 2M.

[Tarheelhawg]

So instead firing him now, looks like we should place him on administrative leave until Jan.  Then let him go.  Saves us almost 2M.

Yes , that would be smart football.

[Martygit]

So instead firing him now, looks like we should place him on administrative leave until Jan.  Then let him go.  Saves us almost 2M.

Wouldn't make any difference - let him coach it out - it can't get any worse with him here and no better with an interim - just wait until 1/1/18, then let him go - in the meantime, find someone else and put them in your back pocket until after the first of the year

[a0ashle]

So I'm guessing trying to sink Long on the basis of the buyout is off the table now?

[Martygit]

Funny , I really enjoyed that calculation .  I was laughing when I saw your post.  I have got your back !

With all of the would-be geniuses on here, we could probably take over the whole place - as if we'd want to 

[Tarheelhawg]

With all of the would-be geniuses on here, we could probably take over the whole place - as if we'd want to 

As long as we are fantasizing,  I would like to see Brohm or Chad Morris from SMU.   

[rhames]

So I'm guessing trying to sink Long on the basis of the buyout is off the table now?

Yeap. I'm sure Guv and FCJ will still be strong in their efforts though.

[Inhogswetrust]

UUUUGGE if true!!

Did Long just go from the dumbest man to the smartest man?

Heck Bret could have to pay the UA $15 million if fired and a few on here would still want Long fired......................

[Inhogswetrust]

Rhames, I know you love both Long and CBB, Long said it, it doesn't matter when and the article brought that out.

It matters WHEN someone says something ALL the time.

[JaketheSnake]

Yeap. I'm sure Guv and FCJ will still be strong in their efforts though.

The witch hunt shall continue!

[DoubleReedHawgCaller]

Duck did you keep that calculator from the hog dog stand you had so we can get this chit straighten out?

[Boardon Hamsay]

Obligatory in before "Son of All Things Bielema's Buyout Less Than $5.9M Per DemoGazz Merged".