Pretty much. That buyout is ridiculously high, and we all know it ain’t gonna happen. A couple more 3, 4 win seasons are in our future. Maybe in 2020 something will change.... ?
Coaches HotSeat has Fedora #2
- Thread starter WoadBlue
- Start date
Can someone who knows legalese better than I do please explain the "buy-out" and "golden parachute" clauses in this article. Or is this article incorrect?
https://hkm.com/football/contracts/larry-fedora/
If we truly owe him $12-14 million if we fire him after this season, and Bubba negotiated his extension, we need to fire Bubba too. You'd think he was a Congressman or a Senator. Sheesh.
https://hkm.com/football/contracts/larry-fedora/
If we truly owe him $12-14 million if we fire him after this season, and Bubba negotiated his extension, we need to fire Bubba too. You'd think he was a Congressman or a Senator. Sheesh.
The buyout would be what he has to pay if he leaves for another job.
Well, there doesn't seem like much chance of that happening now.
I mean, I like the guy and want him to succeed. I hate the constant coach turn-over cycle. But I just don't have much faith in him anymore.
If the cost to fire him is $14M after this year, and it decreases by $3.5M with each succeeding season, I could easily see him being around for two more years regardless of our record.
Yes, if there is no negotiation that matters, Bubba should be fired. Because the fact is that if we have another 3 win season and Fedora is back for 2019, the program will be at an all time rock bottom in terms of ability come back, to rebuild, considering where league members are in terms of football program strength. Bubba's decision could set UNC football back a decade.
Your strategy won’t work. It would just be as easy for another AD to figure out that Bubba is only trashing Fed as retailiation. And nobody would be incentivized to hire him even if he does negotiate his way out. There’s just no incentive for him to give up guaranteed money to get a lower profile job, that likely won’t be affected by the buyout anyways. The only difference is he won’t get another contract with this kind of buyout. But he also won’t need it, considering how much money he’s going to get out of UNC.
Bubba's decision to hire Larry in the first place has left Carolina football behind State, behind Duke and behind Wake Forest.
We are being outplayed and out recruited by all three of our in-state competitors for the first time in our history.
We could have done a lot worse than we did considering the cloud that was hanging over the program when he was hired. The better options turned us down. The extension and guarantees were moronic, but hiring him in the first place was not.
Money solves a lot of problems but Fed obviously loves the game of football and I can't imagine a scenario where he doesn't try to continue coaching. I think that's the angle NC needs to play when negotiating a buy out. We have to get ready to pay more for our coaches to move forward (and that may include a buy out).
Negotiating his buyout just makes him look like an idiot. Why would that help him keep coaching?
My problem with this is that everyone would know the motivation for providing the PR is him basically paying us for it. I'm not blaming you for the optimism, but has there even been a case of something like this actually happening?
Gary Andersen
I trust and respect Andersen. He's not just another common whore of the multimillionaire sort. He has honor, and he set the right standards for everyone.
If I did that as HC, I would demand that my assistants be covered for at least 1 year. But Golden Parachutes are simply wrong.
I believe the contract says that we have to pay his salary minus any money he gets for other work. We could negotiate a lump payment in exchange for removing the ability for him to get paid elsewhere. I imagine that Fedora would want to keep coaching or work in tv, so there would be a reason for him to negotiate a one time payment if I am reading the contract correctly.
So, if I am reading the contract right, at the end of the year he would be owed about 12.5 million over the next 4 years. If you take that to present value at a 6% interest rate, that would be about 9.9 million.
If you assume that he will earn money, there would be more room to negotiate. If he were to assume he could get a job making a million dollars a year, that would be around another 4 to play with. If you split that with him, a payout would be around 7.9 million. If he thought he could make more there would be room to further negotiate.
I wonder what it would actually take to buy him out. I guess he could sit around and get paid the full amount, but he seems like a guy who could not sit out. (One of the things I like about him).
If you assume that he will earn money, there would be more room to negotiate. If he were to assume he could get a job making a million dollars a year, that would be around another 4 to play with. If you split that with him, a payout would be around 7.9 million. If he thought he could make more there would be room to further negotiate.
I wonder what it would actually take to buy him out. I guess he could sit around and get paid the full amount, but he seems like a guy who could not sit out. (One of the things I like about him).
