Buyout clauses exist, but are rarely enforced for obvious reasons in poaching situations. They usually only come into play when a coach is fired without cause. Mullen’s buyout from MSU was like $5 million, UF paid us something like $400-$500k total.
The reason why they are rarely enforced is that the poaching school can just wait out the “poachee” for as long as necessary. If the school that loses their coach tries to take it to court to get their fully owed amount, it gets tied up in litigation for weeks or months and their hands are tied to hire a replacement. Can’t do anything until it gets settled. Meanwhile, the coach that is departing can continue recruiting for the new school while it gets worked out.
You also have additional complexity with certain states not even recognizing buyout clauses in poaching situations or any other non-compete agreements as part of their contract law statutes. That makes it very difficult to ever get the fully owed amount unless you have a guy who will work for almost nothing to come in as the replacement.
This could be nominated for bad legal takes.
A buyout clause is not a restraint of trade. It is a liquidated damages provision which is valid and enforceable in every state I am aware of. It is an estimate of the economic harm each party will face in light of early termination.
The problem arises if the buyout greatly exceeds the financial damages the school will suffer as a result of the coach leaving, in which case it might be viewed as inequitable, or even a restraint of trade. The cost of hiring a new coach rarely exceeds 6 figures, but there is the unknown damage to the program (which could actually be $0).
Also, what makes you think a school cannot hire a new coach while litigating with the old coach over his buyout? The school is not trying to force the old coach to stay. They just want their money.
Buyout clauses are negotiated downward to resolve differences and avoid litigation. In the case of a coach going to a new school, the new employer usually handles the buyout. They may provide different compensation, like a home and home series, or some other type of favor. In addition, the school losing their coach is about to poach a coach from another school, so maybe they don't want buyouts to be iron clad.