Part 2/9:
Understanding buyouts begins with recognizing their role as financial safety nets for coaches who leave or are dismissed prematurely. When a coach signs a long-term deal—say, ten years at $9-10 million annually—there's often a clause that requires the school to pay the remaining contract if the coach is fired before the term ends.
In Brian Kelly’s case, despite his recent firing, LSU is on the hook for roughly $50 million because he had five years left on a ten-year deal signed in 2021. This huge sum underscores the trap of such contracts: they tie universities into big financial commitments, sometimes regardless of the team’s performance or changing leadership.