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Michigan State University’s dismissal of Alan Haller will have a financial fallout beyond his own contract.
It affects football coach Jonathan Smith’s deal as well.
The school’s decision to part ways with its athletic director Thursday triggers a clause in Smith’s seven-year, $52.85 million deal he signed when he was hired 17 months ago that cuts in half how much another school would have to pay to pry him away from the Spartans.
RELATED: Couch: Alan Haller did a lot of good at MSU. But the cost of football and donor relations were his undoing.
Smith’s contract reads: “In the event Alan Haller is no longer serving as the Athletics Director at the time of termination, the Liquidated Buyout shall be reduced by 50%.” That clause was not in the contract of either previous MSU football coach Mark Dantonio or Mel Tucker, nor is it part of Tom Izzo’s ongoing five-year contract that rolls over annually.
Smith was hired Nov. 25, 2023. MSU hired its new president, Kevin Guskiewicz, two weeks later on Dec. 8 that year, and he took over the top leadership position at the university on March 4, 2024. A leadership change within a school can have a trickle-down effect, with a new president wanting to hire an athletic director they are familiar with, and then a new athletic director then potentially looking to replace inherited coaches from a previous regime. Similarly, coaches also want to work for leaders they are familiar and/or comfortable with and could seek other opportunities if a relationship with a new athletic director is not established quickly.
If another school were to hire Smith away between now and Dec. 1, he would owe MSU $3 million, a relatively small buyout for a coach entering his eighth season running a power-conference Football Bowl Subdivision program after leaving Oregon State. MSU paid the same amount to get Smith out of his contract with his alma mater.
If Haller remained AD, it would have cost a potential suitor for Smith $6 million this year. The adjusted terms to Smith’s deal with the provision kicking in means should he leave for another job, he would owe MSU $2 million between Dec. 2 and Dec. 1, 2026; it drops to $1.5 million the following year, $1 million in Year 5 and $500,000 in Year 6. Smith would not be required to pay the university if he were to leave after Dec. 2, 2029, without an extension or renegotiated contract with a new athletic director.
Dantonio was hired by Ron Mason shortly before he retired at the end of 2006, and he worked for 13 seasons under athletic directors Mark Hollis and Bill Beekman until his own retirement in February 2020. Beekman then hired Tucker, whom Haller terminated during the 2023 season for off-field sexual harassment issues. Nick Saban in December 1999 is the last Spartans football coach to leave for another job (Louisiana State) without being fired or retiring.
More: Alan Haller out as Michigan State athletic director amid evolving college sports world
Typically, if another school hires a coach who is under contract elsewhere, it will pay for the required buyout for that person. For example, MSU paid Bowling Green $400,000 to cover the contract buyout of women's basketball coach Robyn Fralick when the Spartans hired her in March 2023. Fralick’s contract with MSU does not include any language tying her buyout to Haller’s departure.
Should MSU fire Smith without cause, his contract is 85% guaranteed, whereas Tucker’s 10-year, $95 million deal signed in 2021 was fully guaranteed under those circumstances. Haler fired Tucker for cause Sept. 27, 2023; Tucker is suing the school for wrongful termination. Smith, like Tucker, would be owed nothing from MSU if he's fired for cause.
The Spartans went 5-7 last fall in Smith’s debut season. He is 39-42 in his first seven seasons as a college head coach, though he went 25-13 over his final three years with the Beavers.
Contact Chris Solari: [email protected]. Follow him @chrissolari.
Subscribe to the "Spartan Speak" podcast for new episodes on Apple Podcasts, Spotify or anywhere you listen to podcasts. And catch all of our podcasts and daily voice briefing at freep.com/podcasts.
This article originally appeared on Detroit Free Press: Michigan State's AD dismissal affects Jonathan Smith's contract
Continue reading...
It affects football coach Jonathan Smith’s deal as well.
The school’s decision to part ways with its athletic director Thursday triggers a clause in Smith’s seven-year, $52.85 million deal he signed when he was hired 17 months ago that cuts in half how much another school would have to pay to pry him away from the Spartans.
RELATED: Couch: Alan Haller did a lot of good at MSU. But the cost of football and donor relations were his undoing.
Smith’s contract reads: “In the event Alan Haller is no longer serving as the Athletics Director at the time of termination, the Liquidated Buyout shall be reduced by 50%.” That clause was not in the contract of either previous MSU football coach Mark Dantonio or Mel Tucker, nor is it part of Tom Izzo’s ongoing five-year contract that rolls over annually.
Smith was hired Nov. 25, 2023. MSU hired its new president, Kevin Guskiewicz, two weeks later on Dec. 8 that year, and he took over the top leadership position at the university on March 4, 2024. A leadership change within a school can have a trickle-down effect, with a new president wanting to hire an athletic director they are familiar with, and then a new athletic director then potentially looking to replace inherited coaches from a previous regime. Similarly, coaches also want to work for leaders they are familiar and/or comfortable with and could seek other opportunities if a relationship with a new athletic director is not established quickly.
If another school were to hire Smith away between now and Dec. 1, he would owe MSU $3 million, a relatively small buyout for a coach entering his eighth season running a power-conference Football Bowl Subdivision program after leaving Oregon State. MSU paid the same amount to get Smith out of his contract with his alma mater.
If Haller remained AD, it would have cost a potential suitor for Smith $6 million this year. The adjusted terms to Smith’s deal with the provision kicking in means should he leave for another job, he would owe MSU $2 million between Dec. 2 and Dec. 1, 2026; it drops to $1.5 million the following year, $1 million in Year 5 and $500,000 in Year 6. Smith would not be required to pay the university if he were to leave after Dec. 2, 2029, without an extension or renegotiated contract with a new athletic director.
Dantonio was hired by Ron Mason shortly before he retired at the end of 2006, and he worked for 13 seasons under athletic directors Mark Hollis and Bill Beekman until his own retirement in February 2020. Beekman then hired Tucker, whom Haller terminated during the 2023 season for off-field sexual harassment issues. Nick Saban in December 1999 is the last Spartans football coach to leave for another job (Louisiana State) without being fired or retiring.
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More: Alan Haller out as Michigan State athletic director amid evolving college sports world
Typically, if another school hires a coach who is under contract elsewhere, it will pay for the required buyout for that person. For example, MSU paid Bowling Green $400,000 to cover the contract buyout of women's basketball coach Robyn Fralick when the Spartans hired her in March 2023. Fralick’s contract with MSU does not include any language tying her buyout to Haller’s departure.
Should MSU fire Smith without cause, his contract is 85% guaranteed, whereas Tucker’s 10-year, $95 million deal signed in 2021 was fully guaranteed under those circumstances. Haler fired Tucker for cause Sept. 27, 2023; Tucker is suing the school for wrongful termination. Smith, like Tucker, would be owed nothing from MSU if he's fired for cause.
The Spartans went 5-7 last fall in Smith’s debut season. He is 39-42 in his first seven seasons as a college head coach, though he went 25-13 over his final three years with the Beavers.
Contact Chris Solari: [email protected]. Follow him @chrissolari.
Subscribe to the "Spartan Speak" podcast for new episodes on Apple Podcasts, Spotify or anywhere you listen to podcasts. And catch all of our podcasts and daily voice briefing at freep.com/podcasts.
You must be registered for see images attach
This article originally appeared on Detroit Free Press: Michigan State's AD dismissal affects Jonathan Smith's contract
Continue reading...
