Lincoln Riley gets his QB at USC
- Thread starter ChiTownLionPSU
- Start date
Boom! He is going to clean up out there with recruits. Probably bad news for the rest of the PAC-12
People keep quoting this guy but he’s a supposed Sooner Insider; how would he - before anyone else - know what’s in Riley’s contract? Dude is an energy lobbyist/political wonk - doubt he’s anywhere close to correct. He’s just spitballing.
I am shocked. I expect a similar tweet after the Sooners bowl game that Williams is entering the portal and will be going to USC.
24/7 private jet? Seriously? Dang.
Edit: I just saw Midnigter's caveat that the guy might not know WTF he's talking about.
Yeah. And the social media wizards had also reported that Kelly was getting $15 million per year from LSU (spoiler, he is not, not even close)
Kelly - with three playoff appearances in the last 10 or so years basically got what Franklin got, just a tic more, and I do not know if it is all guaranteed like Franklin's is (Franklin, of course, with three fewer playoff appearances, and back to back losing conference seasons).
Riley - with four straight NY6 seasons to start his career, along with two playoff appearances. Granted, he was born on third base, but even so has put up a better record than what Stoops did in the previous 5 years, I expect, will be a bit higher than Kelly, but not much,
I understand your concern with Franklin's contract, but Kelly got more than a "tic" more than Franklin. You can still make a solid argument without distorting the facts.
Brian Kelly's LSU contract: Six-figure bonuses, two cars, $1.2 million house loan; see details
New football coach Brian Kelly and LSU agreed to a deal that made him the highest paid coach at a public university in the country, according to a term sheet
New football coach Brian Kelly and LSU agreed to a deal that made him the highest paid coach at a public university in the country, according to a term sheet obtained Tuesday night by The Advocate through a public records request.
While Kelly’s contract will pay him $95 million total in base salary, a longevity bonus will push his total compensation to at least $100 million over the life of the 10-year contract, which made him the first coach at a public school with a nine-figure deal.
Kelly’s salary will start at $9 million per year his first season. It then rises in increments through 2031. The contract, which Kelly signed Tuesday on his way to Baton Rouge, needs approval from the LSU board of supervisors and is pending a background check.
Brian Kelly arrives amid fanfare to begin new era of LSU football: 'Our potential is unlimited'
Brian Kelly arrives amid fanfare to begin new era of LSU football: 'Our potential is unlimited'
LSU added incentives that will easily raise Kelly’s total compensation. The longevity bonus will pay him $500,000 every year as long as he remains LSU's coach on July 1. He also receives $500,000 if LSU makes a bowl game, and the Tigers went to 20 straight bowls before their streak was snapped last season by a self-imposed ban.
The contract has other bonuses based on Kelly’s performance. After LSU's first SEC championship, his annual compensation will increase by $250,000 for the remainder of the contract. And if LSU wins a national title, his base salary will increase by an additional $500,000 for the rest of the deal.
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So, he makes 1/2 million more per year than Franklin (of course, each will then earn something more based on hitting their "performance targets", based on how their teams do, but no one will know that until we see how they perform). That is a lot of money for me - and maybe for you - but I referred to that as a "tic", given that we are talking about annual salaries in the neighborhood of $10 million. You can call it whatever you want, of course. But, yes, it is what it is - no distortions.I understand your concern with Franklin's contract, but Kelly got more than a "tic" more than Franklin. You can still make a solid arguement without distorting the facts.
Brian Kelly's LSU contract: Six-figure bonuses, two cars, $1.2 million house loan; see details
New football coach Brian Kelly and LSU agreed to a deal that made him the highest paid coach at a public university in the country, according to a term sheetwww.theadvocate.com
New football coach Brian Kelly and LSU agreed to a deal that made him the highest paid coach at a public university in the country, according to a term sheet obtained Tuesday night by The Advocate through a public records request.
While Kelly’s contract will pay him $95 million total in base salary, a longevity bonus will push his total compensation to at least $100 million over the life of the 10-year contract, which made him the first coach at a public school with a nine-figure deal.
Kelly’s salary will start at $9 million per year his first season. It then rises in increments through 2031. The contract, which Kelly signed Tuesday on his way to Baton Rouge, needs approval from the LSU board of supervisors and is pending a background check.
Brian Kelly arrives amid fanfare to begin new era of LSU football: 'Our potential is unlimited'
Brian Kelly arrives amid fanfare to begin new era of LSU football: 'Our potential is unlimited'
LSU added incentives that will easily raise Kelly’s total compensation. The longevity bonus will pay him $500,000 every year as long as he remains LSU's coach on July 1. He also receives $500,000 if LSU makes a bowl game, and the Tigers went to 20 straight bowls before their streak was snapped last season by a self-imposed ban.
The contract has other bonuses based on Kelly’s performance. After LSU's first SEC championship, his annual compensation will increase by $250,000 for the remainder of the contract. And if LSU wins a national title, his base salary will increase by an additional $500,000 for the rest of the deal.
Kelly's performance bonuses to appear to have a higher ceiling than Franklin's (though Franklin's are pretty high as well), but time will tell on those. We also know that Franklin becomes a free agent again in two years - and he has ALWAYS played the free agent game to leverage more money. Kelly probably, though I do not know for sure, has a relatively low buy out as well.
On the other hand, 3 playoff appearances, vs 0 playoff appearances (and back to back losing conference seasons, vs 11-1 and five straight double-digit win seasons), is probably, in most people's opinions, a much more significant difference. You would probably agree, I think.
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In the bigger picture, it is all, obviously, insane.
When Franklin signed his deal, he was, at the moment, the 3rd highest paid coach in college football - behind Saban and Dabo (4th if you count lame duck Orgeron). By the end of the month he will probably be somewhere in the lower part of the top ten (Kelly, Tucker, Riley, and probably another one or two others will leap frog his contract, I would expect).
A few years back, when Franklin signed his first extension, he was at $4.2 million, and 8th, if I recall correctly, in the nation. It was definitely in the top 10. Today, just a few years later, that is considered chump change for a P5 head coach. The way money is being shoveled into the furnace of college football coach salaries is just truly insane.
I know why that is happening, and so do most people who are paying close attention. And we also know what will cause it to stop.
While it is wonderful for the coaches and their families, obviously, it is horrendous for the sport, stunningly hypocritical, and - in many people's opinions - and trying to not be too grandiose, an indictment of our values as a society. Certainly of the values and priorities of higher education.
Now, get off my soapbox.
When Franklin signed his deal, he was, at the moment, the 3rd highest paid coach in college football - behind Saban and Dabo (4th if you count lame duck Orgeron). By the end of the month he will probably be somewhere in the lower part of the top ten (Kelly, Tucker, Riley, and probably another one or two others will leap frog his contract, I would expect).
A few years back, when Franklin signed his first extension, he was at $4.2 million, and 8th, if I recall correctly, in the nation. It was definitely in the top 10. Today, just a few years later, that is considered chump change for a P5 head coach. The way money is being shoveled into the furnace of college football coach salaries is just truly insane.
I know why that is happening, and so do most people who are paying close attention. And we also know what will cause it to stop.
While it is wonderful for the coaches and their families, obviously, it is horrendous for the sport, stunningly hypocritical, and - in many people's opinions - and trying to not be too grandiose, an indictment of our values as a society. Certainly of the values and priorities of higher education.
Now, get off my soapbox.
I agree with you that the Franklin deal is a head scratcher and not merited. I don't agree with you that Kelly only got a "tic" more.
A "Tic Tac"? A KitKat? A "Skoosh"? Anyway, just kidding. You're right, it is what it is - and it would be a huge pile of money to me. But I would be overjoyed with 1/2 of either contract, for sure.
I've been following the potential commitments and flips to Riley and USC in the 2022 & 2023 classes and it's staggering. If he can put together any kind of defensive staff, USC could be looking at top 3 classes for a while as the So. California area is a HS recruiting mecca. Just goes to show how bad the coaches that followed Pete Carroll underperformed and failed
Franklin's deal is 10 years at $70 million, is it not? Kelly's getting 40 percent or so more. That isn't a tic more. Franklin looks like a bargain if we return to form.
Believe it's something like:
Base Salary - $7,000,000
Annual Retention Bonus - $500,000
Life Insurance Loan - $1,000,000
So, total compensation is around $8.5mm a year (doesn't include other incentives or performance bonuses), which is why you are seeing his total package between $75mm - $85mm for 10 years. I found an article that details how the split-dollar life insurance policy works and why it's valuable to both Franklin and PSU (this was from his previous contract extension, but the concept is the same):
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PSU released a financial term sheet summarizing the extension. One of the compensation items is “Annual Loan For Life Insurance.” It lists six annual loans (premiums) of $1 million. It’s a classic split-dollar plan.*
PSU continues a trend following such big-name football programs as Louisiana State University, the University of Michigan and Clemson University where split-dollar life insurance is used as a fringe benefit to retain and reward successful coaches. It has also been used in men's and women's college basketball.
The concept of split-dollar is simple – two parties by agreement share in the rights and obligations of a life insurance policy. The two parties are the employer (PSU) and the employee (Franklin). The policy premiums, cash value and death benefit are shared or “split” between PSU and Franklin.
Split-dollar brings together the life insurance needs of an employee with the premium paying ability of the employer. It appeals to both employers and employees: Employees get the life insurance protection they need at an affordable cost while the employer gets to pick and choose participants and can be reimbursed for the cost of the plan.
The actual split-dollar agreement has not been released but it may be designed as follows:
- PSU pays annual life insurance premiums on a life insurance policy insuring Franklin. For now, based on the financial term sheet, it is for six years. By agreement between Franklin and PSU it could likely be extended beyond six years.
- Franklin (or a trust) owns the policy subject to a collateral assignment in favor of PSU.
- Essentially, PSU is loaning Franklin the annual premiums but is not charging him interest.
- Because he is getting an interest-free loan, Franklin must include an annual interest charge in his income known as imputed interest income - it's usually a small amount relative to the premium.
- If Franklin dies while the agreement is in force, PSU gets reimbursed its premiums through the death benefit and Franklin's beneficiary gets the remainder (often a much larger amount).
- If Franklin resigns, is terminated, or retires, PSU exercises the collateral assignment and gets its premiums back through the policy cash value (assuming there is enough cash value in the policy). After the assignment is removed, Franklin keeps the policy, including any remaining cash value. The payback provision motivates Franklin to stay with PSU. The longer Franklin stays the better it will look for him as the cash value grows.
- In the end, if properly structured and funded, the only cost to PSU is the opportunity cost on the premiums. Franklin's cost is the tax on annual interest income.
The split-dollar plan appeals to both PSU and Franklin. Franklin gets the life insurance protection and the potential for cash accumulation at an affordable cost. PSU is taking steps to retain Franklin, minimizing its potential exposure to the IRC section 4960 excise tax, and may ultimately be reimbursed the cost of the plan.
Although this case involves a college football coach, the split-dollar concept is commonly used in the business community. In fact, split-dollar dates back to the 1950s. Universities are finally getting hip to the concept. Think of Franklin as the CEO of the football program. The split-dollar plan is one of his fringe benefits. Split-dollar is appropriate for executives, officers, and managers. It can be established for a single participant (like the Franklin’s plan) or for a group or class of employees. In a typical plan, select management level employees are offered to participate.
As this case demonstrates, split-dollar life insurance can be a valuable fringe benefit plan that should not be overlooked. It is a powerful tool to recruit, reward, and retain top talent.
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Franklin's (who is coming off of back to back losing conference seasons - and with four years remaining on his old deal) guarantee is $85 million over 10 years, plus large potential bonuses. (And, most importantly, for Franklin, he is a free agent again in 2 years - and the merry-go-round starts again)
Kelly's (coming of, IIRC, 5 straight double digit win years, and 3 playoff appearances, and being hired away from an ultimate Blue Blood program) is, IIRC (and I wouldn't personally want to vouch for it with 100% accuracy, because I haven't seen it) $95 million for 10 years, plus large potential bonuses - but you can check for yourself.
Call the differences whatever the in the world you want.
If Penn State "returns to form" - assuming by that you mean being competitive in the Big Ten, Franklin's contract will be null and void ($2 Mill coach buyout in 2024, IIRC). Is that a bargain? Maybe, I don't know. Again, call it whatever you want.
If Penn State doesn't "return to form" (and continues to lay eggs) then PSU is on the hook for mid-to-upper 8 figure buyout to cut Franklin loose - or has to hold on to him at $8.5 million per year.
Again, call that whatever you want, but I think the nature of the contract pretty much guarantees that the contract can - by definition - never become a bargain for Penn State - but could become a huge albatross (for the next generation of Penn State leadership) - and that is does guarantee the contract to be a windfall for Franklin.
None of that should come as a surprise, given the relative intellectual acumen of the parties on either side of the "negotiation" table.
For what it is worth, Mike Poorman did a pretty nice, concise, summary: James Franklin’s 100 Games and Penn State Contract: I Crunched the Numbers so You Don’t Have to | State College, PA
By the way, the article Midnighter linked in with regard to Split Dollar is pretty accurate (very accurate, actually). I am not sure how many will understand it, but it is well written by someone who knows what they are talking about. Harbaugh, and several other coaches, had similar arrangements for part of their compensation - and it was made somewhat more attractive after the 2017 tax code changes, but does have some drawbacks that were not outlined in the article (It may have been written by an Insurance Company or some other interested party)
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we live in an age when facts don't matter
I had not looked into the details very closely. Jimmy Sexton clearly has shown his value to his client. This is the classic heads I win, tails you lose deal for CJF. Those numbers seem insane, but A&M had a $95.6 mm buyout for Jimbo Fisher. I think Penn State's making a long-term commitment, while Franklin is making maybe a 2-year commitment, which may be all that Sandy cares about.
Agreed. They clearly bent PSU over a barrel, and PSU seemed more than willing to bend over for them - and I think you point with regard to Sandy Barbour is likely spot on, why should she care?
For what it is worth, one of the big differences between Franklin's situation, and many of the others, is that the others were cases of one program hiring away a desirable coach from another program. Franklin, absolutely incredulously, was already under a long-term contract with Penn State - 4+ years yet to run - and Sexton and Franklin somehow "convinced" Sandy Barbour to tear up the existing contract, and write up another for even more money and even larger guarantees. That is just astounding. Truly.
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