Possible Trouble for Chizik

[jtd9046]

Is this common for the coach to pay his own buyout ? Doesn't the new employer pay for his buyout ?

Auburn is paying it. They gave him the $750k in a loan as part of his compensation. Every year that he remains the coach they forgive $150k of it.

 

[Cyclonestate78]

Interesting:

If Auburn terminates Chizik for cause, the coach could be required to repay the balance of the $750,000 the university loaned him to pay his buyout at Iowa State in late 2008.

I guess that is how badly they wanted Chizik and is a huge indicator of what Auburn thought of his coaching skills. They didn't pay the buyout for him.... they "loaned" him the money to pay it himself? Really? Ouch.

 

[jtd9046]

I guess that is how badly they wanted Chizik and is a huge indicator of what Auburn thought of his coaching skills. They didn't pay the buyout for him.... they "loaned" him the money to pay it himself? Really? Ouch.

See above. This isn't that hard everyone. Auburn is paying it, just over 5 years. He'll only be accountable to pay the balance if he's fired with cause. It's simply contractual speech and a way of protecting themselves, not an indicator of what they thought they were getting in Chizik.

 

[Stormin]

It sounds pretty straightforward to me. Auburn paid the buyout but put it in terms of a "loan" which was forgivable at $150,000 per year for 5 years. This way, if Chizik left early then they would be able to recoup some of the buyout costs. In a way, it is kind of like the "Golden Handcuffs" that an employer gives an employee to ensure that they stay with the company.