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Dynasty Maker [3191]
TigerPulse: 97%
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I never have understood the "negotiating down" portion of a
Oct 22, 2019, 12:15 PM
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conversation regarding the firing of a head coach.. Why in the world would any coach negotiate down what's owed to him as part of his contract?? My simple response to an AD would be "We agreed to an amount of compensation, and a buyout amount in the event you found it necessary to fire me without cause.. You're going to pay me every cent upon to which we agreed in our contract.." Maybe the coach wants out too and they are just like "fine,, that'll work,, I want out of here".. Any insight?
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Solid Orange [1322]
TigerPulse: 100%
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Re: I never have understood the "negotiating down" portion of a
Oct 22, 2019, 12:19 PM
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Sometimes it's like a structured settlement. Say they owe a coach $10 mil over 10 years buyout. He agrees to take a one time lump payment of $7 mil.
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Ultimate Clemson Legend [105932]
TigerPulse: 100%
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Joined: 2008
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It depends how the buyout is allocated
Oct 22, 2019, 12:19 PM
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If a coach has a large buyout to be paid over a long period of time, but it gets cut off if they find another job, then it would benefit the coach to negotiate the buyout down and front-load the payments more. That way he's making more money up front until he finds another job in which case it would be cut off anyway.
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Ultimate Clemson Legend [101631]
TigerPulse: 100%
64
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Joined: 2005
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The word you're looking for is "mitigate"..
Oct 22, 2019, 12:21 PM
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your welcome
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Ultimate Clemson Legend [105932]
TigerPulse: 100%
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No, I'm thinking more about net present value
Oct 22, 2019, 12:22 PM
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but thanks anyway
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Dynasty Maker [3191]
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Paw Master [17606]
TigerPulse: 100%
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Joined: 1999
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I am no authority but I guess it has to do with future
Oct 22, 2019, 12:22 PM
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employment. I believe most contracts have a clause that they have the right of offset vs any future earnings during the term of the canceled contract. Maybe it is worth it to the coach to get a clean start, and negotiating down means he can be released immediately for a lesser lump sum payment, but is then free to go earn what he can on the open market (and keep it).
But in a case like Taggart, where his value on the market is declining, that brings us back to, "show me the money". He likely can't replace the buyout value anywhere else. I mean, who is going to take a chance on him if he leaves FSU this fast, and in this big a mess?
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