Are coaching salaries getting out of control?

[OSU_Sports_Nut]

FOOTBALL EXAMPLE
I would like to see all college football coaching contracts be incentive laden (so you don't have to renegotiate every few years for someone who wins a lot of games or overpay someone who isn't winning enough games). For example, the athletic department could set a base pay of $1,000,000 with $200,000 per regular season win (non conference) and $350,000 per regular season win (conference). Plus, you add bonuses for the teams end of season ranking (top 25 = $1.0M, top 20 = $1.25M top 15 = $1.5M, top 10 = $1.75M, top 5 = $2.0M), a $1.0M for a championship game appearance or a $2.0M bonus for a conference championship win, a $350k for a bowl game appearance or $750k bonus for a bowl win, plus an additional $1.5M bonus for a playoff game appearance or $3.0M bonus for a national championship win.

For example, if a coach wins all of his games he would be paid $12,500,000. Any coach who is confident in his abilities would see this number and believe they could achieve this pay. Using Gundy as an example, he would have been paid the following over the last 6 seasons at oSu.

GUNDY 2017-18 (overall record 10-3)
Base Salary = $1.0M
Regular Season (non conference) 3 wins + 0 losses = $600k
Regular Season (Big 12 conference) 6 wins + 3 losses = $2.1M
Final Ranking (ranked #14) = $1.5M
Conference Championship (none) = $0
Bowl Game/Playoff (win) = $750k
Proposed Salary = $5,950,000 (actual = $4.2M)

GUNDY 2018-19 (overall record 7-6)
Base Salary = $1.0M
Regular Season (non conference) 3 wins + 0 losses = $600k
Regular Season (Big 12 conference) 3 wins + 6 losses = $1.05M
Final Ranking (not ranked) = $0
Conference Championship (none) = $0
Bowl Game/Playoff (win) = $750k
Proposed Salary = $3,400,000 (actual = $5.0M)

GUNDY 2019-20 (overall record 8-5)
Base Salary = $1.0M
Regular Season (non conference) 3 wins + 0 losses = $600k
Regular Season (Big 12 conference) 5 wins + 4 losses = $1.75M
Final Ranking (not ranked) = $0
Conference Championship (none) = $0
Bowl Game/Playoff (loss) = $350k
Proposed Salary = $3,700,000 (actual = $5.125M)

GUNDY 2020-21 (overall record 8-3)
Base Salary = $1.0M
Regular Season (non conference) 1 win + 0 losses = $200k
Regular Season (Big 12 conference) 6 wins + 3 losses = $2.1M
Final Ranking (ranked #21) = $1.0M
Conference Championship (none) = $0
Bowl Game/Playoff (win) = $750k
Proposed Salary = $5,050,000 (actual = $4.25M)

GUNDY 2021-22 (overall record 12-2)
Base Salary = $1.0M
Regular Season (non conference) 3 wins + 0 losses = $600k
Regular Season (Big 12 conference) 8 wins + 1 loss = $2.8M
Final Ranking (ranked #7) = $1.75M
Conference Championship (none) = $1.0M
Bowl Game/Playoff (win) = $750k
Proposed Salary = $7,900,000 (actual = $4.35M)

GUNDY 2022-23 (overall record 7-6)
Base Salary = $1.0M
Regular Season (non conference) 3 wins + 0 losses = $600k
Regular Season (Big 12 conference) 4 wins + 5 losses = $1.4M
Final Ranking (not ranked) = $0
Conference Championship (none) = $0
Bowl Game/Playoff (loss) = $350k
Proposed Salary = $3,350,000 (actual = $7.5M)

 

[OSU_Sports_Nut]

BASKETBALL EXAMPLE
If we applied a similar incentive laden contract to our men's basketball team, here is what Boynton would have been paid. There would be a base pay of $500,000 with $50k per regular season win (non conference) and $100k per regular season win (conference). Plus, you add bonuses for the teams ranking at the end of the season (top 25 = $250k, top 20 = $500k, top 15 = $750k, top 10 = $1.0M, top 5 = $1.25M), a $250k bonus for a conference championship appearance and an additional $750k bonus for a conference championship win (total $1M), and a bonus for the NCAA postseason ($250k for a tournament appearance plus $500k for Sweet 16 appearance plus $750k for Final Four appearance plus a $1M bonus for winning a national championship). IF the basketball coach wins all of his regular season and post season games, he would be paid $7,700,000. Using Boynton as an example, he would have been paid the following each of his seasons at oSu.

BOYNTON 2017-18
Base Pay = $500,000
Regular Season (non conference) 10 wins + 3 losses = $500k
Regular Season (Big 12 conference) 8 wins + 10 losses = $800k
Ranking (not ranked) = $0
Conference Championship (none) = $0
NCAA Tournament = $0
Proposed Salary = $1,800,000 (actual = $1.0M)

BOYNTON 2018-19
Base Pay = $500,000
Regular Season (non conference) 7 wins + 6 losses = $350k
Regular Season (Big 12 conference) 5 wins + 13 losses = $500k
Ranking (not ranked) = $0
Conference Championship (none) = $0
NCAA Tournament = $0
Proposed Salary = $1,350,000 (actual = $1.6M)

BOYNTON 2019-20
Base Pay = $500,000
Regular Season (non conference) 10 wins + 3 losses = $500k
Regular Season (Big 12 conference) 7 wins + 11 losses = $700k
Ranking (not ranked) = $0
Conference Championship (none) = $0
NCAA Tournament = $0
Proposed Salary = $1,700,000 (actual = $1.725M)

BOYNTON 2020-21
Base Pay = $500,000
Regular Season (non conference) 7 wins + 0 losses = $350k
Regular Season (Big 12 conference) 11 wins + 7 losses = $1.1M
Ranking (ranked #19) = $500k
Conference Championship (loss) = $250k
NCAA Tournament = $250k
Proposed Salary = $2,950,000 (actual = $1.85M)

BOYNTON 2021-22
Base Pay = $500,000
Regular Season (non conference) 7 wins + 5 losses = $350k
Regular Season (Big 12 conference) 8 wins + 10 losses = $800,000
Ranking (not ranked) = $0
Conference Championship (none) = $0
NCAA Tournament = $0
Proposed Salary = $1,650,000 (actual = $3M)

SCENARIO #1
Using this incentive laden model, here is what a average Eddie Sutton season would have paid a coach (with a regular season record of 20 wins and 11 losses). This is based on 13 non conference games and 18 conference games.

Base salary = $500k
10 non conference wins= $500k
10 conference wins = $1M
Top 20 ranking = $500k
NCAA appearance = $250k
TOTAL = $2,750,000

SCENARIO #2
Let's pretend a coach puts together a really good season including a conference championship appearance and sweet 16 appearance (with a regular season record of 23 wins and 8 losses)

Base salary = $500k
11 non conference wins= $550k
12 conference wins = $1.2M
Conference game = $250k
Top 15 ranking = $750k
NCAA sweet 16 = $750k
TOTAL = $4,00,000

SCENARIO #3
Now let's pretend a coach has a real special season and wins a conference championship and goes to the final four (with a regular season record of 28 wins and 3 losses).

Base salary = $500k
12 non conference wins= $600k
16 conference wins = $1.6M
Conference championship = $1M
Top 10 ranking = $1M
NCAA final 4 = $1.5M
TOTAL = $6,200,000

 

[OSU_Sports_Nut]

Additionally, the athletic department could add the following measures to help mitigate the risk exposure of signing a coach to a long-term contract who isn't performing on the field.

1) Sign all coaches to these incentive laden contracts.

2) Sign all coaches to 3-4 year auto renewing lifetime contracts (for stability, job security, and to help with recruiting).

3) Make the buyouts for the University based on the average pay from the last 3 full seasons, which would also help give the coach security and peace of mind knowing they have until the end of the season to turn things around.

4) Make the buyout amounts for any coach wanting to leave based on the high end value of the contract (since the University is risking paying that amount if the coach wins a lot of games). IF another team is interested in our coach, but this team isn't on the coaches list of top 5 dream jobs then those teams must pay 100% of the max contract for the contract length of 3-4 seasons. However, IF the other team is on the list of top 5 dream jobs the buyout amounts are as follows (listed #1 = no buyout, listed #2 buyout 20% of max, listed #3 buyout 40% of max, listed #4 buyout 60% of max, and listed #5 buyout 80% of max).

5) Talk to some influential alumni about coming up with all bonus money for these contracts (to help keep and retain good coaches while not breaking the athletic department budget).

6) All non-conference wins are paid in January. All conference win bonus money (for the regular season) is paid in March. All other bonuses are paid after the school year in May. This would be done to give the University enough time to round up enough fundraising support and to make coaches seriously consider these other bonuses before pursuing another job (coaches forfeit these later bonuses if they leave before May). This also keeps the larger bonus money amounts out of the university budgets. Additionally, just like NIL money, have some alumni start a non-profit to make it a tax deductible donation and make the head coach have to do some marketing during the year for their companies.

7) All contracts are reviewed at the end of each year and the max amount is adjusted to be no lower than the average of the top 5 salaries (in their coaching profession). Additionally, all contracts can only be renewed or cancelled (fired), In other words, the auto renewing cannot be put on hold (contracts are either renewed or cancelled).

 

[OSU_Sports_Nut]

EDDIE SUTTON'S RECORD AT OSU

1990–91	Oklahoma State	24–8	10–4	T–1st	NCAA Division I Sweet 16
1991–92	Oklahoma State	28–8	8–6	2nd	NCAA Division I Sweet 16
1992–93	Oklahoma State	20–9	8–6	2nd	NCAA Division I Round of 32
1993–94	Oklahoma State	24–10	10–4	2nd	NCAA Division I Round of 32
1994–95	Oklahoma State	27–10	10–4	2nd	NCAA Division I Final Four
1995–96	Oklahoma State	17–10	7–7	4th
Oklahoma State Cowboys (Big 12 Conference) (1996–2006)​
1996–97***	Oklahoma State	19–13	7–9	6th	NIT Second Round
1997–98	Oklahoma State	22–7	11–5	T–2nd	NCAA Division I Round of 32
1998–99	Oklahoma State	23–11	10–6	5th	NCAA Division I Round of 32
1999–00	Oklahoma State	27–7	12–4	T–3rd	NCAA Division I Elite Eight
2000–01	Oklahoma State	20–10	10–6	5th	NCAA Division I Round of 64
2001–02	Oklahoma State	23–9	10–6	T–3rd	NCAA Division I Round of 64
2002–03	Oklahoma State	22–10	10–6	4th	NCAA Division I Round of 32
2003–04	Oklahoma State	31–4	14–2	1st	NCAA Division I Final Four
2004–05	Oklahoma State	26–7	11–5	3rd	NCAA Division I Sweet 16
2005–06	Oklahoma State	17–16	6–10	7th	NIT First Round

 

[OSU_Sports_Nut]

I hope the athletic department thinks outside of the box and puts together something like this to offer the next head basketball coach.

We do not need to be locked into another very unfavorable long-term basketball contract. Instead we need the next contract to be flexible enough to reward a coach that is winning games, but also flexible enough to get out of the contract if the coach is not winning games.

 

[OSU_Sports_Nut]

People on here have stated no coach would sign an incentive layden contract, but Mark Few did. I hope our athletic department does the same for our next coach. I hate to see us wrapped up in another horrible contract or lose a coach because we're not paying them enough. A coach that is confident in their abilities should be willing to sign something like this.

There would be a base pay of $1,000,000 with $50k per regular season win (non conference) and $100k per regular season win (conference). Plus, you add bonuses for the teams ranking at the end of the season (top 25 = $250k, top 20 = $500k, top 15 = $750k, top 10 = $1.0M, top 5 = $1.25M), a $250k bonus for a conference championship appearance and an additional $750k bonus for a conference championship win (total $1M), and a bonus for the NCAA postseason ($500k for a tournament appearance plus $750k for Sweet 16 appearance plus $1.0M for Final Four appearance plus a $1.5M bonus for winning a national championship). IF the basketball coach wins all of his regular season and post season games, he would be paid $9,450,000. The highest paid college coach in 2023 was John Calipari at $8,500,000.

SCENARIO #1 (AVERAGE SEASON)
Using this incentive laden model, here is what an AVERAGE Eddie Sutton season would have paid a coach (with a regular season record of 20 wins and 11 losses). This is based on 13 non conference games and 18 conference games.

Base salary = $1M
10 non conference wins= $500k
10 conference wins = $1M
Top 20 ranking = $500k
NCAA appearance = $500k
TOTAL = $3,500,000

SCENARIO #2 (GOOD SEASON)
Let's pretend a coach puts together a really good season including a conference championship appearance and sweet 16 appearance (with a regular season record of 23 wins and 8 losses)

Base salary = $1M
11 non conference wins= $550k
12 conference wins = $1.2M
Conference game = $250k
Top 15 ranking = $750k
NCAA sweet 16 = $500 + $750k
TOTAL = $5,000,000

SCENARIO #3 (GREAT SEASON)
Now let's pretend a coach has a real special season and wins a conference championship and goes to the final four (with a regular season record of 28 wins and 3 losses).

Base salary = $1M
12 non conference wins= $600k
16 conference wins = $1.6M
Conference Champ = $250k + $750k
Top 5 ranking = $1.25M
NCAA final 4 = $500k + $750k + $1.0M
TOTAL = $7,700,000

Gonzaga Coach Mark Few Salary - USA TODAY

See the complete salary history of Gonzaga coach Mark Few, including scheduled school pay and bonuses. Brought to you by USA TODAY.

sports.usatoday.com

 

[OSU_Sports_Nut]

Some will argue this idea would be bad because bonuses are taxed at a higher rate (22% to 37%), but when you're talking about millions of dollars you're already moving into a higher tax bracket (37%) and that makes the argument void.

Bonus tax rate: How are bonuses taxed? | Fidelity

Learn about the federal bonus tax rate and how your bonus is taxed.

www.fidelity.com

According to the IRS, anyone making over about $600,000 is already in the highest tax bracket at 37%.

Federal income tax rates and brackets | Internal Revenue Service

See current federal tax brackets and rates based on your income and filing status.

www.irs.gov

 

[OSU_Sports_Nut]

Someday this type of contract will be the standard. Universities cannot continually be put in a position to make HUGE buyouts on overinflated salaries.