STrib: U regents frustrated with Pitino big-money buyout push for contract authority

[BleedGopher]

per Amelia:

The University of Minnesota president and athletic director would need Board of Regents approval on contracts for the highest-paid Gophers coaches under a new regent proposal.

Regent Michael Hsu told the Star Tribune he will introduce a resolution at Thursday’s meeting to return contract-approval power to the board, which has not had that authority since 1996.

Hsu said “a group” of like-minded regents favor the change, prompted by their frustration with what has been learned about the 2015 contract extension for Richard Pitino. The deal, finalized days after athletic director Norwood Teague’s sudden resignation, gave the men’s basketball coach the highest potential buyout in Gophers coaching history — $7.1 million.

http://www.startribune.com/u-regent...buyout-push-for-contract-authority/374073421/

Go Gophers!!

 

[scher215]

Maybe they should just hire better athletic directors?

 

[Tim1406]

I can't imagine this working out well for anyone. I agree with you Scher215. Either that or we need new board of regents members

 

[watertown 1987 guy n]

Haven't seen the entire article but would be poor journalism if they didn't discuss what is common in contracts for other coaches and what may be included in the contract that could justify the amount of the buyout. If they include the $7.1 mill in the article but don't discuss the rest of these issues then it's just a crappy rag article. If that's the case then I guess I shouldn't be surprised by that for a newspaper that would employee Reusse.

 

[short ornery norwegian]

The entire article includes info from 11 of the other 13 teams in the conference. Pitino's buyout clause is actually about mid-point for the conference - but the article noted that some much more successful coaches, like our old buddy Bo Ryan, had smaller buyouts. The article also noted that other schools do grant the Regents authority to review contracts.

Bottom line - Pitino and his agent got a real sweetheart deal from Mega Tongue, and the U decided to honor that deal after Teague got the boot.

 

[station19]

The entire article includes info from 11 of the other 13 teams in the conference. Pitino's buyout clause is actually about mid-point for the conference - but the article noted that some much more successful coaches, like our old buddy Bo Ryan, had smaller buyouts. The article also noted that other schools do grant the Regents authority to review contracts.

Bottom line - Pitino and his agent got a real sweetheart deal from Mega Tongue, and the U decided to honor that deal after Teague got the boot.

HUH?

 

[Ignatius L Hoops]

HUH?

Hsu said the regents were not informed of the extension until after Goetz and Phenix signed, seven days after Teague resigned.

 

[Otis]

isn't 7.1M more than his current contract? That is quite the buyout and I'm pretty sure Rich doesn't have the rep to deserve it!

 

[A-Town Owl]

Why aren't coaches' contracts more incentive laden? Skip the buyout and give them huge incentives to win, advance in the Dance, and increase attendance and revenue.

 

[Doc1001]

They would love Izzos 22 million buyout. Or Ohio States 16 million.

 

[olddoc]

It is my understanding that almost all of a coach's compensation comes from sources out side of the university's budget.
That is boosters, TV and radio spots, being paid for being in advertisements, etc.
In amy event the reagents are a little late to the show. If memory serves me Maturi did the same thing repeatedly and left the well so dry it was hard to recruit "name" coaches in the revenue sports.

 

[Winasota Gopher]

Why aren't coaches' contracts more incentive laden? Skip the buyout and give them huge incentives to win, advance in the Dance, and increase attendance and revenue.

There is this thing where both parties have to agree....

And you can imagine why they would prefer the non-incentive laden version. And as a budgeted entity like the University it's much better to have your costs out in front of you so you can spend your money "wisely" rather than having these huge escalators in unexpected situations.

 

[10000 Latkes]

They would love Izzos 22 million buyout. Or Ohio States 16 million.

Izzo and Matta are basically never going to be fired without cause. Their buyouts are just a number. Pitino's buyout is much more significant, since it's a realistic possibility that they might want to get rid of him.

 

[bc2211]

What bothers me about this is that the Regents are basically pulling public support of Pitino, but saying they are too cheap to do anything about it.

Also taking power away from an AD while searching for a new one is not a good image to project.


Sent from my iPhone using Tapatalk

 

[watertown 1987 guy n]

Even if Izzo or Matta are fired for cause, it is an almost certainty that the amount of the buyout is considered since a buyout is a nice option for the university to quickly put a messy situation behind them and the coach to leave quietly and not sue their respective university.

 

[2nd Degree Gopher]

What bothers me about this is that the Regents are basically pulling public support of Pitino, but saying they are too cheap to do anything about it.

Also taking power away from an AD while searching for a new one is not a good image to project.

I agree with your second point, but think you are overstating the first one. There is plenty of room to be of the opinion that this buyout is wholly out of line for someone of Pittino's accomplishments without suggesting that he should be out of a job but for the buyout.

 

[watertown 1987 guy n]

What bothers me about this is that the Regents are basically pulling public support of Pitino, but saying they are too cheap to do anything about it.

Also taking power away from an AD while searching for a new one is not a good image to project.

If your right and that is public and coaches perception, then it would be sad that the suits are back in charge calling the shots on athletics vs a strong AD. Seems that has been a recipe that has relegated us to decades of mediocrity in sports. I really hope they know their own boundaries but with bureaucrates that usually isn't the case.

 

[howeda7]

We're never going to get a coach of significance to take a job here if the offer is subject to BOR approval 4 weeks later. Are these people completely naive to how college athletics work?

 

[golfing18now]

It is always easy to be outraged about a contract twelve months/two years/three years after it was negotiated (see Joe Mauer). At the time Pitino was extended and the buy-out was increased, I think the majority opinion on this board would have supported the decision. One bad year later and the opinion changes and the finger pointing at the previous AD begins. As noted previously, it is a middle of the road buy-out. Stability matters. Let's see what happens next year.

 

[Winasota Gopher]

It is always easy to be outraged about a contract twelve months/two years/three years after it was negotiated (see Joe Mauer). At the time Pitino was extended and the buy-out was increased, I think the majority opinion on this board would have supported the decision. One bad year later and the opinion changes and the finger pointing at the previous AD begins. As noted previously, it is a middle of the road buy-out. Stability matters. Let's see what happens next year.

Firing someone a year after you extend them should have sigificant penalties. Regardless of the profession, tenure, ability. Contract was fine, whether not not we should have extended said contract is the piviot point here.

 

[badgerdoc]

We're never going to get a coach of significance to take a job here if the offer is subject to BOR approval 4 weeks later. Are these people completely naive to how college athletics work?

Sure you would. Other universities, particularly public universities act with just this kind of oversight. I was actually shocked to see that Minnesota did not.

 

[A-Town Owl]

There is this thing where both parties have to agree....

And you can imagine why they would prefer the non-incentive laden version. And as a budgeted entity like the University it's much better to have your costs out in front of you so you can spend your money "wisely" rather than having these huge escalators in unexpected situations.

Would a coach not agree to an incentive based contract? Are most coaches not confident they can succeed? They believe that players need to earn their playing time, so should coaches not have to earn their pay? A large university should be able to budget appropriately to have some money in the coffers in case 100% of the incentives are met.

 

[Bayfieldgopher]

Hey Regents, this is the Big Ten and not Minnesota Morris or Crookston!! Stop considering efforts to hamstring those hired to run the AD and be competitive in the BIG.

 

[bc2211]

I agree with your second point, but think you are overstating the first one. There is plenty of room to be of the opinion that this buyout is wholly out of line for someone of Pittino's accomplishments without suggesting that he should be out of a job but for the buyout.

I might be overstating, but this wouldn't be a discussion point if the team had an average year. The reason the regents are even looking at that number has to be because they are unhappy with the results and the bad press. There is a reason the buyout is on the radar. For the record, I'm glad the buyout is this high. I like stability and think Pitino should get another shot.




Sent from my iPhone using Tapatalk

 

[Winasota Gopher]

Would a coach not agree to an incentive based contract? Are most coaches not confident they can succeed? They believe that players need to earn their playing time, so should coaches not have to earn their pay? A large university should be able to budget appropriately to have some money in the coffers in case 100% of the incentives are met.

Its all a negotiation man, and no two contracts are the same. If you were Pitino and you were in year 3 of your contract and you had what looked like one of the worst looking rosters you've had to date what would you want? Security that if you get fired you get a huge chunk of change or an incentive based off of results?

Fast forward 5 years and he's entrenched in his job and only feels he has upside, yeah give me the incentives.

As far as incentive laden contracts, I could imagine doing it with one or two coaches would be fine, but if you do it across the entire department you could run into some financial issues in the event that they all hit the jackpot. Rare, but it's the things you have to think about when talking about contracts the size of these. Labor is usually something businesses count on as a controllable cost, you shift a larger percent to incentives, particularly volatile incentives, it becomes a variable cost.

I don't think the contract is bad for either party, it's all about the timing that is wrong.

 

[Ignatius L Hoops]

http://www.startribune.com/u-regent...them-say-on-big-coaching-contracts/374223211/

This is how easily a simple oversight idea goes wildly off track (emphasis added):


Regent Darrin Rosha, who had supported Hsu’s resolution, followed with his own proposal. His resolution would have established an ad hoc committee of six regents to recommend budgeting principles and set priorities for the athletics department. The goal was to give the board a chance to establish its own parameters for the AD search.

Johnson noted there is already a 16-member search committee for the AD, with two regents (Thomas Anderson and Peggy Lucas) serving as advisers to President Eric Kaler