West Fargo Gopher Fan
Section 114 Row 2
- Joined
- Feb 14, 2014
- Messages
- 3,508
- Reaction score
- 423
- Points
- 83
From Daily Gopher:
http://www.thedailygopher.com/2017/...t-buyout-base-salary-memorandum-understanding
Length
As reported elsewhere for weeks, Coach Fleck’s contract is for 5 years.
Salary
Also as reported elsewhere, Coach Fleck’s yearly salary is $3.5 million a year. Here’s how that amount breaks down:
Base salary: Fleck’s base salary is $1 million. This amount will increase by $50,000 each year (i.e. base salary for year 2 of the contract will be $1,050,000, year 3 will be $1,100,000, etc)
Supplemental compensation: Fleck will be paid $2.5 million a year for “in recognition of your efforts on behalf of the University for media, fundraising, community involvement, endorsements, apparel, and shoes.”
Incentives: Fleck is eligible for academic and performance incentives each year. The amounts of these incentives are not spelled out in the MOU, so we’ll have to wait until the final contract to see how they look.
Buyout
Coach Fleck’s buyout is a set yearly value that is reduced after each year of the contract. It is not a simple (X years times base salary) equation. Instead, each year of the contract is assigned an independent buyout amount. The total owed is the sum of the buyout values for the remaining years on the contract. Here are the yearly amounts owed:
Year 1: $3.5 million
Year 2: $3.5 million
Year 3: $2.5 million
Year 4: $1.5 million
Year 5: $1.5 million
How does this work in practice? If Fleck is fired after the first 3 years of his contract, the U would owe him the sum of the buyout amount for year 4 ($1.5 million) and year 5 ($1.5 million), for a total buyout of $3 million. If he was fired midway through a contract year (say year 3) then the total would be half of the amount owed for year 3 ($1.25 million) plus the sum of years 4 and 5 ($3 million), for a total buyout of $4.25 million.
Early exit penalties
What happens if Fleck leaves the U for another job? In that case, he is required to pay a buyout equal to the sum of the base salary for the remaining life of the contract. In other words, if he left voluntarily after 3 years he would owe $2 million (or so) to the University.
http://www.thedailygopher.com/2017/...t-buyout-base-salary-memorandum-understanding
Length
As reported elsewhere for weeks, Coach Fleck’s contract is for 5 years.
Salary
Also as reported elsewhere, Coach Fleck’s yearly salary is $3.5 million a year. Here’s how that amount breaks down:
Base salary: Fleck’s base salary is $1 million. This amount will increase by $50,000 each year (i.e. base salary for year 2 of the contract will be $1,050,000, year 3 will be $1,100,000, etc)
Supplemental compensation: Fleck will be paid $2.5 million a year for “in recognition of your efforts on behalf of the University for media, fundraising, community involvement, endorsements, apparel, and shoes.”
Incentives: Fleck is eligible for academic and performance incentives each year. The amounts of these incentives are not spelled out in the MOU, so we’ll have to wait until the final contract to see how they look.
Buyout
Coach Fleck’s buyout is a set yearly value that is reduced after each year of the contract. It is not a simple (X years times base salary) equation. Instead, each year of the contract is assigned an independent buyout amount. The total owed is the sum of the buyout values for the remaining years on the contract. Here are the yearly amounts owed:
Year 1: $3.5 million
Year 2: $3.5 million
Year 3: $2.5 million
Year 4: $1.5 million
Year 5: $1.5 million
How does this work in practice? If Fleck is fired after the first 3 years of his contract, the U would owe him the sum of the buyout amount for year 4 ($1.5 million) and year 5 ($1.5 million), for a total buyout of $3 million. If he was fired midway through a contract year (say year 3) then the total would be half of the amount owed for year 3 ($1.25 million) plus the sum of years 4 and 5 ($3 million), for a total buyout of $4.25 million.
Early exit penalties
What happens if Fleck leaves the U for another job? In that case, he is required to pay a buyout equal to the sum of the base salary for the remaining life of the contract. In other words, if he left voluntarily after 3 years he would owe $2 million (or so) to the University.